Well, probably with the finances. But from here, you’ll need to start researching to know which apartment would be a great investment for you.
If you’ve been through this process before, you might already know how difficult it is to know if the property is going to suit you.
With investment properties, it can be a little more difficult, considering you need to think of everything on behalf of someone else (your future tenants)
Don’t fret, we’ve put together some times to help you find a great investment property.
Who are you looking for?
One very important step is to have an idea of your ideal renter. Are you wanting to purchase an apartment for families with children or younger couples?
If you’re leaning more towards families, you’ll need to consider the size of the space, number of bedrooms and even if there’s outdoor space and other facilities such as a pool.
Younger couples may not need as much space, but proximity to public transport could be more important to get to and from work. Even bars, cafes and restaurants nearby could be a selling point.
It’s also good to know that there are plenty more apartments available closer to city areas, where houses are being built further out. Purchasing an apartment as an investment property could help you achieve a great location, helping you out for when you look for tenants.
Think of the inside environment
There’s a little more to 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.
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 potential better returns.
Before you make an offer on your investment property, contact your local Mortgage broker to ensure that you have your loan and preapprovals sorted.