ONE-BEDROOM RISKS

June 14, 2005

Despite predictions of an increase in single-person households in Australia, a Perth buyer's agency has warned buyers to be careful when investing in a one-bedroom apartment.

Property Wizards managing director, Liz Sterzel said while the Australian Bureau of Statistics predicted lone-person households to shift up to 34 per cent by 2006, buyers should be aware one-bedroom apartments were not guaranteed money spinners.

"While there will clearly more people living alone in Australia as time goes on, that does not automatically mean one-bedroom apartments will be a prime investment," she said.

According to Ms Sterzel, buyers need to keep several factors in mind when buying such properties.

These factors included making sure there was not an over supply of apartments in the area, there was no opportunity for an increase of apartments in the area and the apartment had features such as water views.

Ms Sterzel reminded buyers that after the 1989 real estate boom there was very little growth in the apartment market for the following 10 years.

"Apartments actually grew at around 4 per cent, which was half the rate of houses for that period, so investors need to know we could see the same result this time around," she said.

For more information, please contact
Mr Trevor Dunkley
Director
Property Wizards
trevor@propertywizards.com.au
Tel: (08) 9381 7450