PROPERTY
By Sally Scott
With inner-Brisbane property prices continuing to creep up and fears of further rises in interest rates, it is seemingly impossible to get a foot into the ownership door, whether as an owner-occupier or a first-time investor.
You would like at least two-bedroom apartment, or even a one-bedder at a pinch – somewhere within a walk to town. However, even the most modest two-bedroom apartment in such a location can be out of reach for the first-time homeowner.
An option is to set sights a little lower, and start off with a studio apartment – basically one living area, in which to eat, sleep and spend your leisure time, and a bathroom. If you are living alone, which more and more people are doing these days, and have only a limited amount to spend, this could be the way to go.
As one young investor said: “Small apartments in inner-city locations are becoming much more the norm and are really very sought after to rent. See New York, London and Sydney, for example.”
Studio apartment can be a good starting point for a young person to become self-reliant. They are relatively cheap to furnish and decorate and to keep clean. However, on the downside, everything needs to be well organised and have its own place, otherwise it will resemble the worst teenage bedroom. There are a few inner-Brisbane studio apartments listed for sale but they move quickly, and the best don’t last long on the market/
Peter Gaston, of LJ Hooker at Kangaroo Point has been selling and reselling studio apartments in Shafston Mansions (pictured above) for six years now, and has a few on the market ranging in price from $139,000 to $195,000. Sizes range from 21sqm to 32sqm, some with balconies and air-conditioning. And the city centre is just two kilometres away, an eight-minute trip on the ferry.
Mr Gaston says the best apartments in the complex, which is set in magnificent heritage-listed surroundings, are those fronting the Brisbane River – and it shows in the pricing.
“The cheapest apartment that sold in 2008 to 2009 was 21sqm for $135,000 and the dearest was $188,000 with air-con and a balcony facing the river on the 10th level,” he said. And although most of the apartments are rented by students, there is a growing number of owner-occupiers. “There are 10 or more owner-occupiers now living in this studio-apartment complex,'' Mr Gaston said.
"They are great investment properties but, for first-home owners, they would not get better as a cheap inner-city start into the market.
”Council rates are around $1600 per year, and body corporate fees are currently between $650 and $710 per quarter (with discount), which also covers all electricity costs to apartments. There is also car parking available for owner-occupiers.
Spring Hill also has several studio apartments on the market, mostly in large hotel complexes. For example, Remax Everything Property Group is marketing one such property in the Ridge On Leichhardt (pictured below), an imposing building set right in the heart of this popular inner suburb. Fully furnished with an underground car park, the apartment comes with access to a pool, gym and BBQ and entertaining area. Agency principal Chris Hinds said the property was attractively priced with offers over $237,000 sought. “This is a price that will suit first-home buyers or astute investors,” he said. “The rental return is about $15,000 per year. “But why rent it out? You can live here yourself and enjoy all the benefits and facilities, and it’s only a five-minute walk to the Queen Street Mall.” Mr Hinds said there was increased interest in affordable apartments at this time of year. “We find these properties extremely popular due to investors purchasing and wanting to settle before the end of financial year for tax purposes,”' he said.
Shafston Mansions
9 Castlebar Street, Kangaroo Point.
Contact Peter Gaston LJ Hooker Kangaroo Point
Ph: (07) 3391 5399 Mob: 0419 712 470
www.ljhooker.com.au/ kangaroopoint
The Ridge on Leichhardt
55/189 Leichhardt St, Spring Hill
Contact Chris Hinds Everything Property Group, Adelaide St, Brisbane
Ph: 1300 128 011 Mob: 0410 063 800
www.everythingpropertygroup.com
