Australian block sizes are getting smaller. In fact, realestate.com.au suggests that they are around half of what they were 30 years ago, at between 200 and 350 square metres. People need more floor space to live in nowadays, though, which is why double-storey homes are the best option for your next investment.
Finding the right property does not just come down to getting into a place with all of the right amenities nearby, with great water pressure and a three-car internal garage. The perfect investment property caters to the people who will be living in it: the tenants.
Why are double-storey homes a better option for investment?
To increase your potential pool of tenants, and make sure you always have someone living in your property (earning you money), it is vital that you look after their needs. In the current Australian climate, that means having plenty of floor space, although not necessarily on a larger block.
According to research undertaken at the University of the Sunshine Coast in January 2016, a family home from a generation ago that housed six now needs to be expanded to comfortably house four. Between 1984 and 2013, the average floor space of new buildings has increased by 49 per cent – a clear indicator that people want more room to live.
The Australian Design Review points out that it is the expansion of our cities that is causing this change. Higher populations that are being forced to live in a region that is not expanding to cope means building up, not out, is the only way to go.
"In the last 15 years, there has been a change in the way Australians live in cities," said Rothelowman Principal Architect Chris Hayton.
"Apartments have become more prevalent, and the quarter-acre block with a backyard is not necessarily the desired choice for a lot of people."
How can you give yourself the best chance of a successful investment?
Building up and not out is giving people the floor space they desire.
To ensure you are catering to the needs of Australians in the major cities, look at the amount of floor space available in a home over other factors. Double-storey homes, as well as apartments, are a great example of how building up and not out is giving people the floor space they desire on the smaller blocks that population increases bring.
For help finding the best investment property for your needs, get in touch with the REIN Group today.