Apartments can offer some very attractive opportunities for investors, the first one being they are often an affordable entry point into the investment property market.
However, like every property, there are some factors you should consider before putting in your offer. You want to be sure you’ll get some return on your investment with the highest rental and growth value.
Apartments are usually under a strata corporation so you will need to budget for some additional costs – our tips for buying into strata article explains some of these.
But what else should you look for? There are certain features investors look for when considering purchasing an apartment and here are some of them:
Does the apartment come with parking?
Even if the apartment is in the middle of Newcastle or near to the beach, parking is still an essential feature many tenants look for. Ask if there is any visitor parking and it may be worth paying the extra for a secure parking space – and then including this in the rent.
One, two or more bedrooms?
Most people like a bit of space, and many want the option of a second room. However, we do know of some very spacious one-bedroomed apartments in popular areas which are working well as an investment too. So there’s no real rule of thumb although generally, the larger the floor space the better. Some investors recommend only buying something with more than 50m² floor space for one-bedroomed apartments, 80m² for two and 110m² for three.
More bedrooms mean you can charge more rent – and more bedrooms will make your apartment attractive to families or tenants who are keen to share with friends and split the rent.
A room with a view
Everyone enjoys a good view, and tenants are no different. Waking up to a good outlook is always preferable especially if there are outdoor areas and balconies that take advantage of the views. Try to find an apartment which is light and bright, and check with the local council for any planned developments nearby which may affect the view.
As with all investment properties, the location is important. Apartments close to the CBD, beaches, schools, public transport and leisure facilities are more likely to be easily rented out and grow in value.
Smaller blocks have a ‘unique’ factor – something many tenants prefer. Plus, apartments in smaller blocks tend to attract a higher growth value than those in large blocks. Many investors recommend going for smaller complexes of between ten to twenty apartments.
Whether you are looking to buy your first home, move home, invest in property, or need a property manager, we can help. We don’t charge for information! Give us a call on 02 4954 8833 or pop into our office and we can help you realise your property dreams.