Thursday, July 9, 2009

Investment Units the long term preference

Unemployment, first-home buyers grant, stock shortages and low new building approvals (due to financing constraints) are conspiring to make investment in units and apartments a growth sector. Lower maintenance, rising rental demand, lower capital levels required for investment entry and immigration from countries whose living habits are accommodated in apartment living are all driving interest in the sector as capital and rental yields improve.

Liquidity concerns and stamp duties makes the investment class a medium and long term play. Given the market cycle, socio-economic trends and taxation treatment, investment in apartments in the right suburbs is definitely back on the agenda for many.

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