Apartments are a popular choice for purchasing, but there are a number of critical points to consider before jumping in.
According to figures from CoreLogic, rental yields for apartments throughout Australia’s capital cities sits at 4.3%, compared to 3.4% for houses. This is a good indication that apartment popularity is growing and may continue to grow for months or years to come.
There are several important features you should be on the lookout for when apartment hunting that can help make or break an apartment. If you are looking for an apartment to use as an investment, listed below is a handy checklist to help keep you on the right track.
Location plays a huge part no matter what type of property you buy. Most tenants who are looking for an apartment want something that is central and within walking distance to all of the necessities such as shops, restaurants, schools etc. Some tenants may also not have a car, so the closer you can be to public transport, the better.
But at the same time, if you are too close to main roads or train lines, some potential tenants may be put off by the extra noise. Spend some time researching different suburbs to see which areas have the most growth potential and are highly sought out by tenants. That way you can narrow your search to particular areas and find the best apartment from there.
Although many tenants find apartments appealing because they are smaller, it does not mean that they don’t need a lot of storage space.
Apartments with small kitchens and minimal cupboard space could be a hard sell to potential tenants. If you find an affordable apartment in a great location, but it has hardly any storage space, you may want to consider renovating the apartment to make it look more open and spacious with more storage space.
Parking can often be more difficult for those living in an apartment compared to those living in a house. Off-street parking is usually limited and can be a deal breaker for potential tenants. Secured undercover parking are extremely valuable and even if you have to spend a little extra each week to secure a spot, it will be worth it if it helps keep your vacancy rate down.
Unlike owning a house, when you own an apartment you will need to deal with the building’s owners’ corporation. It is advisable to think about organising a strata report before buying an apartment. A strata report is an inspection of the records and accounts of the building’s owners’ corporation. This report will bring to light any disputes between owners and building works as well as any unresolved legal issues.
It seems like there are new apartment blocks appearing out of nowhere all the time. But these multi-storey apartment complexes can often limit price appreciation long term as they are so common and every apartment looks alike.
When apartment hunting, look beyond the tall high rises and see what smaller boutique blocks are available. These types of apartments are often more unique and can give you an edge when selling or advertising for tenants.
Whether you are an investor shopping for a new home loan or comparing your current home loan with what is on the market, State Custodians can help you. Our Lending Specialist team can discuss our array of home loan features with you one on one. Give our team a call on 13 72 62 or they can contact you if you leave your details here.