Micro apartments are currently all the rage right now. It’s for those who want to invest in property but without the inconveniences of traditional unit blocks. These micro spaces are compact and can make for a smart investment.
They are defined as living spaces that measure less than 30sqm by Australian standards. The smaller size of micro apartments appeals particularly to millennials as they seek more economical housing options. On the other hand, they offer plenty of value to investors because they have lower upfront costs and higher rental yields.
In this blog, we’ll talk about investing in micro apartments.
The Rise of Micro Apartments
- Urbanisation and limited space in cities: Urban areas are experiencing a lot of population growth. As a result, it creates a higher and tighter demand housing availability which makes traditional larger homes less attainable for many.
- Rising housing costs and affordability challenges: Major cities in Australia particularly like Sydney and Melbourne have high costs for housing. For younger people who have lower incomes this makes finding housing more challenging.
- Changing lifestyle preferences, particularly among young professionals and digital nomads: Digital nomads and young professionals put more premium on experiences than material possessions; they have a preference for smaller spaces. Living in micro apartments within the inner city also gives them access to work, entertainment and social activities at a lower cost as well as flexible lease terms, appealing to those with transient lifestyles or uncertain career paths.
- Desire for community and shared experiences: Co-living offers a sense of belonging, shared facilities like kitchens, co-working areas and gyms and can help social isolation.
Why Invest in Micro Apartments and Co-living Spaces
- High Rental Yields: Micro apartments have higher rental yields. These can translate to better returns on investment for property owners and a quicker return on investment compared to larger, more expensive properties.
- Strong Demand: Micro studio apartments are highly in demand due to various factors ranging from rising housing prices and their appeal to young professionals.
- Lower Entry Costs: A micro studio apartment has a lower price point and requires smaller deposits for micro-apartments compared to larger properties, thus making it much easier to finance.
- Diversified Portfolio: Investing in a micro studio apartment can diversify your portfolio and its smaller size balances a portfolio full of standard apartments.
- Community Aspect: These spaces attract people who have similar interests and lifestyles; they are designed to foster a sense of community, addressing social isolation which can be prevalent in urban areas
- Shared Amenities: Having shared amenities such as gyms, co-working spaces and entertainment rooms are not only convenient but also cater to the lifestyle preferences of many renters, particularly those seeking convenience, community and access to a wider range of experiences.
Looking for Micro Apartments For Rent and Near Me to Invest in?
The movement of the micro apartment may remain niche but it attracts a certain type of resident and has a high potential for investment growth. It is an answer to surging housing demand while simultaneously allowing its residents to have access to their community and experiences in high-cost cities without leaving a dent in their wallets.
At Positive Income Properties we personalise and carefully source the options we present to you (such as co living housing) for your investment and wealth goals. Chat to us to see what we can do for you and your investment portfolio growth potential. Contact us today!
Gil Elliott is the Managing Director and Founder of Positive Income Properties. Gil has a rich background in business consulting and property investment. All of these he gained in his nearly four decades of experience in the real estate and marketing industries.
