Buying apartments the good, the bad and a few things to think about.
The research you need to do when buying an apartment is different from buying a house so here we go. I’ve broken them down into sections that I feel buyers either ask me most or get the most misinformation about, so I hope this clears some questions up and as always if you do have any questions more than happy to help.
Over the years, I have noticed the ever-increasing demand for high-rise apartment living. The Australian dream of owning the large house with the garden is changing more to the apartment either in a high-rise building or small unit complex. I think this is mainly due to the way we are living our lives now.
Younger people are getting married and starting a family later in life and are moving out of the family home to live alone first, so why have a big house to look after when it is only you. Retirees are selling the family home when the families have all moved out and choosing apartment living as they do not need so much space. Having lived in the heart of Surfers Paradise for over 10 years now and in many different complexes, I have found that doing your homework before purchasing can save you many a heart and headache.
So here are a few tips from me when it comes to buying apartments, either as a lifestyle or investment purchase.
Does height really matter?
When it comes to buying an apartment in a high-rise what is the best to buy? It is a question that buyers ask me all the time, and it does make a difference depending on what you are buying the unit for? If you are living in the apartment and it is your new home, then buy what suits you best, as for resale value high floor doesn’t always get more than lower floor as not everyone likes heights.
Just how high should you go?
Surprising, as it seems for returns alone height doesn’t matter as much as you would think. Some people don’t like heights so will request a lower floor apartment when they come on holidays. In some buildings your body corporate will be more the higher the floor you are on, so even if your rental returns are better on a higher floor, after the higher purchase price and holding costs, your returns may be just the same as that unit on the ground floor looking at a brick wall.
Always remember investments are just that an investment that you want to make money from and get a return so takes your emotion out of it. If you are buying a holiday home that you are going to use then make sure it does suit you for when you are going to use it, and the returns are enough to justify the purchase.
Does size really matter?
This relates not only to how many bedrooms should you buy but also to how spacious the unit is. When I first start talking to many buyers, they all want to buy a 2 bedroom, 2 bathroom apartment for no other reason than it’s got to be a better resale opportunity. I have always questioned this as you can lose many future buyers, as it may just be out of their price range. Also, the holding costs for these units is generally higher than maybe a 1 bedroom plus study with a door that can be rented out as a 2 bedroom. Yes, it only has one bathroom, but as an investment when you crunch the numbers they can stack up significantly more in favour than the other.
So buy what suits your budget and for what you are looking for and don’t overlook a 1 bedroom or even a 3 bedroom unit if it suits your budget and the returns are there go and have a look at that as well.
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Until next time as always, do your research before putting pen to paper.
Happy investing and have fun.
Thank you for taking the time to read this post, I would love to hear about your experiences when you have bought an apartment contact me below.