Secondary Residence Vs. Apartment

I have lived in Canberra for 53 years since I was 6 years old and have seen many changes in the way we live, work and play.

The Directors Take on Granny Flat Living versus Apartment Living…

Recently there is a push for higher density living with apartments popping up everywhere which I can only presume is due to demand. The most prevalent sign of this is the suburb of Coombs. The number of apartment blocks/towers are also popping up in the city, the North and other central locations, some reaching 20 floors and more. Pricing ranging from $295,000 for a one bedroom in Coombs, to over $900,000 for a one bedroom in the city.

The interest to purchase these kinds of properties I thought was mainly investors but no, there are a higher proportion of live-in owners than investors within any one development of multi-units.

This brings me to the question ‘why not build an apartment in your backyard? Or build a Pod on your current investment property to increase your rental return?

The variety of secondary residences on the market is now many, with a wide range of pricing, depending on a turnkey high-end product to a cheaper granny flat style shed in the backyard. So why even consider this? The answer to most people, is cost.

How much does it cost to purchase a high end 2 bedroom apartment in Woden in a high rise development? My understanding is over $500,000. So how much would it cost to purchase the same apartment but built in your backyard?

The answer may surprise you, for a Pod it will cost less than half for something with a bigger floor area and better amenities eg: established location, family next door, no one living above or below you to disturb your sleep, queuing to use the lift, the noise of the lift well constantly being used, queuing in the basement to leave for work etc.

I think you are getting my view on this as I believe an apartment in your backyard is a great opportunity.

Just ask yourself, how much should I spend on the quality of my living?

Do you want a tin shed with a bed, a shipping container without insulation or do you want a high-end apartment style home in a backyard?

Regards

Robert Valk

The Pod Canberra and VRD Developments