More Australians seeking out strata living
March 21, 2014 / Written by Rich Harvey
Trends may come and go, but making money in real estate investment often comes down to knowing which way the wind is blowing.
If you're a Sydney property buyer wondering which investment strategy makes the most sense at the moment, look no further than the growing strata trend.
Strata title, or individual ownership in part of a property, is becoming increasingly popular in New South Wales.
"The escalating cost of buying real estate is forcing a greater proportion of the younger population into medium- to high-density living," said Real Estate Institute of New South Wales Director Gary Adamson.
"At the same time, growing numbers of aging members of the population, who are also the fastest growing portion, are no longer able or willing to maintain the quarter acre block, which means moving into strata dwellings."
In short, both younger and older Australians are seeking out accommodation in strata properties. If you're hoping to purchase a cash flow positive property, it appears all signs are pointing to strata.
Mr Adamson went on to say that due to long-term government urban consolidation policies in NSW, zoning for medium- and high-density homes has increased while zoning for single dwellings has declined.
"As a result, the development of strata and community title properties now exceeds the number of free-standing dwellings being constructed in NSW and the move is expected to accelerate in years to come," Mr Adamson said.
Whether you're looking at strata properties in the inner west, eastern suburbs or north shore, the benefits remain the same. Costs for upkeep are generally much cheaper than those for a free-standing home, and since you'll be paying strata levies on a regular basis toward maintenance, you can be sure that your investment will be kept in good condition.
At the same time, paying these fees can be a turnoff if you wish to own your own investment property free and clear.
Regardless, if the trend of more and more people seeking out strata living continues, moving into this market as an investor seems to be a logical choice.