The number one property choice for new investors

One-bedroom apartments are generally favoured by rookie investors as their first step on the property investment ladder.

A review of tax depreciation schedules that DEPPRO has completed for first-time investors during 2015 reveals that a high proportion of them are for one-bedroom apartments.

Rookie property investors are attracted to purchasing one-bedroom apartments for a number of reasons.

Firstly, they offer a lower-cost entry point into the property market compared to buying a larger property.

For first-time investors with limited financial resources, this is an attractive option especially if the apartment is located in an area with high capital growth potential.

Another attraction of one-bedroom apartments is because there is a high demand for this type of rental accommodation, as more people are living alone today due to major demographic changes in our society over recent years.

These two factors – lower-price entry cost and high rental demand – mean that rental returns for one-bedders are favourable for rookie investors.

It also gives new investors experience in the property market, while at same time not financially over committing themselves.

In addition, new one-bedroom apartments also deliver first-time investors generous tax deprecation benefits that assist with the overall cash flow.

Developers are responding to this demand with new apartment complexes now having a greater proportion of one-bedroom apartments compared with a decade ago.

If you are considering buying an investment property for the first time, then you should consider the following points: