Do Penthouses Make Good Investments?
Penthouses are the epitome of luxury when it comes to property. They are large, spacious apartments situated on the top floors of high-rise buildings – and they’re incredibly expensive.
A national record price was set in April – an estimated $25 million – for a penthouse in Melbourne. It will take up the entire 100th level of what will become the tallest building in Australia: Building 108. It was bought by a businessman based in China.
But are penthouses a good property investment? They’re luxurious, sure, but can you expect a decent ROI? What kind of market are you dealing with when it comes to penthouses?
At the end of the day, what’s important to a “normal” buyer will also be important to a penthouse buyer – but with a few nuances.
Above all else, it’s the view that’s important when it comes to a wise penthouse investment. Views aren’t totally insignificant in regular home / apartment purchases, but when it comes to the penthouse, they’re priority #1.
A penthouse buyer expects luxury and prestige, and the view is everything. If a penthouse has a pristine view, it’ll be far more likely to keep up with the market and hold its value over time.
If the penthouse is in Sydney, you want to be able to clearly see the Opera House from it. If it’s in Melbourne, you want to see the city skyline. Your penthouse should afford the buyer the lifestyle they want – and a great view is absolutely essential.
Penthouses are located in the city, so one drawback to the uber-luxurious offerings provided could be parking convenience.
And if multiple people are living in a penthouse, it’s a safe assumption that there could be multiple cars in the family. Parking should be spacious, convenient and very secure.
Location is always important, but with penthouses, the considerations are a little different than usual. It’s a safe bet that a penthouse will be located in or near the CBD, so when you’re considering penthouse location, it’s all about the building it’s in.
You want your penthouse to be in a tower filled with other high quality units. It’s all about prestige, lifestyle and luxury, and the building should suit those desires.
At Mortgage House, we’re no strangers to the homeowner’s journey. It’s a long (but rewarding) one.
But don’t worry, we can help with that.
If you’re thinking of buying a home, you can contact us for advice about the best options for you when it comes to your mortgage. The cost of your mortgage can drastically affect your financial planning, so it pays to speak to the experts about it.