Penthouses: Does the High Life Make for Great Returns?

Penthouses: Does the High Life Make for Great Returns?

When it comes to houses and residential properties some great greater than other, you must be thinking, what are we on about? Well, penthouses! Nothing can beat the glamour of a penthouse, the villas and mansions are great, but don’t have the views of penthouses, do they?

Penthouses look great, they feel great and what awesome views they have, and it’s all unbeatable. However, there is still this question; do they get sufficient returns to their investors? Is investing in a penthouse will prove lucrative? The buy is always thinking, will I get my money back?

Take this as an example. In April 2015 the record piece of a penthouse of Australia’s highest skyscraper was $25 million. The penthouse took over the entire floor and was 750 sqm of living space 319 metres above Melbourne’s Southbank. The last selling price of this same penthouse was around $19.3 million in 2009.

Now the question is, will the current owner find a buyer that will pay more than the standard market price for the same penthouse? Will he make a profit on this luxurious buy? Is the market predictable? Or will the penthouse and the owner struggle to keep up with the trend of the market?

Well, let’s start by telling you that the penthouse market isn’t like the real estate market. You can have the same penthouses, with all the same luxuries but different views. One with a better view will cost more, even when they are twins.

People buy penthouses, not for the size, but the lifestyle, entertaining as well as flaunting the views. To them, all this matters way more than the great returns they might get or the future value of the house. If the penthouse is like green home then it will be eco-friendly.

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The most important thing when it comes to the penthouse is not the size of the place but the view. In Australia, if the view is either the Opera House or Harbour Bridge, the penthouse will sell in a jiffy and also have a huge price tag. It will also get the investor great returns as the view is phenomenal. Your penthouse can be awesome, but if it’s looking the wrong way, you will definitely lose money.

When it comes to Sidney, nothing can beat the serene views of uninterrupted water flow and the beautiful calm sky. It’s picture-perfect, just like the way an artist would paint his sunset. These views make a great background for the days you are entertaining as well as for the day you want to have a relaxed time.

Apart from the view, there are many factors that contribute to the returns and pricing of a penthouse. The location, the area and the furnishing matter a lot as well. To ensure profitable capital growth, it’s important that you consider all these factors.

The penthouse of Eureka Tower 7 Riverside Quay South-bank shows the most breathtaking views of Melbourne city. This contributes to the high price tag of the place. If you are looking at a penthouse that has a hefty price tag, ask yourself one thing, is the place as iconic as it seems?

For example, every video that captures the beauty and skyscrapers of Melbourne has the iconic Eureka Tower in it.

The second question that you should ask yourself is the calibre of the place, who owns the other apartments of the building, the elite class or university students. All this will help you assess the future of the building.

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The trend of buying penthouses is increasing year by year. In recent years there have been many sales closing around $2 million brackets in the industrial suburbs of Melbourne’s inner east area. The market is growing steadily and impressively. The investors and buyers alike are well-heeled, and they do want amazing views. They are motivated by the fact that a good view will add to their entertaining evenings. It will also add bonus points to their lifestyle. Location, as well as the view, is co-related, one can’t be without others.

They want their penthouse to stand out, and it does, owing to the view of the place. Here is the checklist that you need to consider to know what you should look for in your future penthouse.

Checklist:

  • A penthouse should have panoramic views of the city as well as the sky. It should have the likes of the harbour, Opera House in Sydney and city skyline in Melbourne.
  • Right location: connectivity, development as well as accessibility to all the landmarks of the city
  • Ample car Parking space
  • Elite neighbourhood

 

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