Think of the inside environment
There’s a little more to the environment than just nearby cafes. You need to consider the environment of the apartment itself as well.
Does it have great natural lighting and ventilation? Does it have a nice view and probably most importantly, does it have a parking space?
Apartments generally have less required maintenance (gardening, etc.) than houses. However, it is also harder to make structural changes, where you generally need approval from strata first.
Now consider the outside environment
Now we’re talking about cafes. Before you jump into buying your property, it’s good to think like a tenant. For example, I’d much prefer a good view, a great location and being close to public transport.
Is there an internal laundry, or is it a shared facility? Where could I park my car?
Are there financial benefits?
When it comes to investing in property, it’s a long game. Properties have been proven to be a great long term strategy to build wealth.
You’ll need to also consider charging a competitive rental price to ensure you attract renters while trying to balance receiving enough income to cover costs of the mortgage.
Other financial considerations
If you’re looking at apartments which tick most of the other boxes, but think it’ll need some renovations or better appliances – you’ll want to consider these costs when purchasing the property.
Not only this, but apartments also come with strata fees. This fee depends on where you are looking, but it’s worth asking the questions of what these costs would be when you’re hunting.
Our Beginner's Guide to Property Investing covers what you need to consider as a potential investor in the property market. It goes over lesser known fees and gives you a detailed list of what you need to have ready.
Consider the trends
Knowing how apartment value trends are tracking in the locations you’re looking (both in the past and the projected value) can also give you a better idea of where to purchase.
Another important tip is not to discount the older apartments! Many buyers assume newer is better, but this isn’t always the case. Older apartments could have bigger rooms, larger living areas and possibly with a lighter price tag.
If you’ve found a few apartments you think would be a great investment, looking at the valuation trends could help determine the area for potentially better returns.
Before you make an offer on your investment property, contact your local Mortgage broker to ensure that you have your loan and pre approvals sorted.
If you’re yet to decide whether a house or an apartment would be the better option for you? Read our article ‘Houses versus units – which is the better investment?’.