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Top Tips for Investing in an Apartment

Investing in an apartment is different to buying house and land, especially if you are purchasing an apartment off-the-plan. With this in mind, I have compiled a list of top tips for any investor who is thinking about investing in an apartment: Top tips for investing in an apartment

1. Investors should be looking to buy new rather than established apartments as there is generally less maintenance required

2. Understand the area – do not invest in an apartment where lots of other apartments are due to be built which could lead to an over-supply, affecting the value of your property and your ability to attract good tenants

3. New apartment developments in quality suburban locations are worthy of consideration – especially if there is nothing else comparable in the area

4. Look for as much floor space as possible but not at the expense of quality

5. Be aware of the strata fees and make sure you factor them into your calculations

6. Review the By-Laws and make sure the building is adequately insured

7. Weigh up amenities and strata fees – generally more amenities in an apartment building (pools, tennis courts and gyms) can lead to higher strata fees so make sure the extra amenities are worth the expense

8. Know how much you will need to pay for quarterly council, water and electricity rates

9. Choose the location and level of your apartment wisely – higher levels usually mean better views but it also impacts the purchase price

10. Don’t rule out the ground floor apartments – they often appeal to families with kids and the older demographic

11. Check the orientation of the apartment and avoid south-facing properties where the balcony will rarely see the sun

12. If buying off–the-plan, check the list of apartment specifications carefully to make sure you know exactly what you are getting and there is no potential for uncertainty

13. If you have the opportunity to select an interior colour scheme, go for something neutral that will appeal to a broad range of tenants and is unlikely to date too soon

14. Check the parking allocation – if you are choosing a two bedroom apartment, always aim for two car bays and avoid tandem car bays if possible (one in front of the other rather than side by side) as they are an inconvenience to tenants

15. Review the contract documentation carefully, especially if you are investing in an apartment off-the-plan and always have your lawyer or a qualified professional review the documents on your behalf

16. If investing in an apartment that is new or off-the-plan, only purchase from an experienced and reputable developer

17. If purchasing off–the-plan, ask for your deposit to be placed in an interest bearing account

18. Always ask for the break-down of owner occupiers and investors in any apartment building you are interested in as it is always preferable to have a good balance with the majority in favour of owner occupiers.

If you are interested in investing in an apartment and would like some expert advice, contact the team of Property Investment Specialists at Investor Assist here. They can help you weigh up your options plus provide details about the ABN Group’s latest apartment offerings. Most importantly – this service is absolutely free!