By NICOLE VALICEK
UNITS are trumping houses in sales and rental properties in Altona making it a hot spot for buyers and investors.
An article in the Australia Property Investor Magazine (API) compiled a list of 70 spots where units outperformed houses.
In Melbourne Altona was one of only six suburbs in Victoria to make the list.
According to the article, Altona likely made the list due to its proximity to sought-after, wealthy locations.
“It gets the benefits of being next door to Williamstown and the wealth effect drips across the border,” Agent and founder of consultancy Secret Agent Paul Osborne buyers said.
Mr Osborne said those who want to live in a “ritzy” area but can’t afford it typically huddle in surrounding suburbs.
“Also working in Altona’s favour is its cheaper buy in price, making the investment return stronger.”
In Altona, the median price of a unit is $389,500 with the median weekly rent of $315, compared to the median price of a house at $584,500 with median weekly rent of $365.
RAMS Real Estate Altona principal Steven Nikolovski said units can be a popular choice for many investors because they generally require less maintenance than houses which makes them more appealing to the potential rental market.
Mr Nikolovski said unit prices may also be a more affordable option to houses which makes them appealing to investors and first home buyers who are seeking to get on the property ladder.
“RAMS experience in the local area shows that Altona is an attractive suburb close to public transport and the beach,” he said.
“There has been a growth in development lately as many of the bigger housing blocks are being sold and new unit blocks being built.”
Mr Nikolovski said many first home buyers were looking for opportunities to buy property to avoid paying rent and with greater supply in suburbs such as Altona, property prices are more affordable.
“In fact, the recent RAMS First Home Buyers’ Pulse Check survey indicate the key drivers for purchasing property include to stop paying rent (48 per cent), ability to make repayments (47 per cent) and affordability of property prices (38 per cent).”
Key features that first home buyers are looking for includes a minimum of two bedrooms, a garage and natural light, he said.
“Lower interest rates are attracting existing home owner whom are looking to use equity in the current home to purchase their first investment property.”
