This episode explores the viability of studio and one-bedroom apartments as investment properties, addressing a listener question about their potential. The hosts begin by differentiating between studios and one-bedroom apartments, noting that studios often feature combined living and sleeping areas and are typically smaller than 50 square meters, a size that can limit their appeal to valuers and banks. Against the backdrop of Australian cultural preferences for space and nature, the discussion highlights challenges in densely populated urban areas where oversupply and a lack of scarcity can hinder property value growth. More significantly, the conversation shifts to the evolving preferences of younger generations, such as Gen Y, who are increasingly drawn to apartment living due to lifestyle and convenience factors. As the discussion pivots to non-standard accommodations like student housing and holiday rentals, the hosts caution against investments driven by glossy brochures and the allure of personal use, emphasizing the importance of fundamental investment principles over emotional attachments. The hosts conclude by advocating for established properties with broad appeal to both investors and owner-occupiers, steering clear of high-density developments to mitigate risks associated with oversupply and fluctuating market conditions.
