Growing up, this generation of first-home buyers imagined houses with lawns to mow and pools to clean.
These days, thanks to property prices and lifestyle goals, their fantasies have been downsized. Now they just want a no-nonsense unit, with minimal maintenance, a foot in the property market, and most importantly a good coffee shop within walking distance.
Stamp Duty
In July this year, first-home buyers finally earned a stamp-duty exemption if they purchase property under $650,000, and a partial exemption for a property under $850,000.
To meet the criteria, sacrifices have to be made. You can have an extra bedroom in the outer west, alongside an extra hour on public transport every morning. Or you could give up a bit of space in exchange for a fabulous lifestyle.
Smaller Units Better Investments
While some of these buyers will be forced to forfeit space, they will not be sacrificing variety. Because shopping for a smaller home will give you access to better locations and also far more choice. In Potts Point, 87.7% of the dwellings available happen to be units and almost 62% of them are one-bedroom or smaller.
Units are also less work. If there’s a blocked gutter, a weed-infested garden or an under-chlorinated pool, strata will manage it.
If you buy something that does need a little bit of a facelift then changing the carpet in a studio will be much cheaper than a house or semi. And the results will be dramatic.
Furthermore Potts Point and other inner-city hamlets are high-density suburbs with little room for movement (development wise). This means that your cosy home will always be in demand.
Potts Point has it all
Suburbs like Potts Point are great because you rarely have to leave. When you do, you can arrive at your destination quickly and comfortably and there is really no need to own a car.
The area is a destination for diners and restaurateurs – think Cho Cho San, Miss G’s and Fratelli Paradiso among others (many, many others). There are also supermarkets, delis, gyms and boutique shops. Most of the time, when you are making a social arrangement, your companions will come to you and if you are unlucky enough to have to meet them on their turf, you are rarely far away.
Thanks to the above, the neighborhood is eternally popular, but it’s not impossible to break into. According to Corelogic, as of August 2017 the median sales price of units in Potts Point was $621,000 – still under the $650,000 threshold for the stamp-duty exemption.
Since first homes are rarely forever homes, once you are sick of the nightlife, day life and great public transport you can sell your unit on or lease it out, because one way or another it will definitely be snapped up.
