Whether you are a first-home buyer or a keen investor, an apartment is a great way to buy property that will offer a good rental yield and get you started in the real estate market. It helps to know successful strategies for buying a new apartment.
These days there is no shortage of units on the market, so it is vital that you choose a property that will increase in value. To achieve strong capital growth, you need to think about the future buyer. Let's take a look at the top tips for buying a new apartment.
Tip #1: Aim for something bigger
Among the criteria on your “buying a new apartment” checklist is the size of unit you choose. Where possible, secure an apartment with multiple bedrooms, as larger apartments appeal to a broader range of prospective buyers. This is one way you can think about the future value of your potential new apartment. A two- or three-bedroom apartment will deliver stronger results than a single bedroom. There will always be a market for well-located two-bedroom apartments, especially if they are close to transport options or have a car park.
Small apartments have a narrower resale market, and most lenders impose restrictions on apartments under 45 square meters when you apply for a loan.
Tip #2: It's all about location
When considering how to buy your first apartment, you can trust the adage about “location, location, location.” When looking at property, your primary consideration should be the suburb, the view, and in the case of apartments, the floor level. Try to secure a unit with decent natural light and consider the demographics of the area and potential target market.
There will always be particular suburbs in very high demand with both old and new high-end apartments. These are usually close to the city center and offer particular lifestyle amenities. Keep it on your “buying a new apartment” checklist, because you need to think about what will appeal to people who are downsizing their way of living.
Tip #3: Car parks add value
One of the best tips for first-time buyers includes which investments increase at the greatest rate. Most popular areas for apartment complexes have limited street parking, so an apartment with a car park will really help you to maximize resale value.
Apartments that include parking spaces increase in value 4 percent faster than those without them, so it tops the list of tips for first-time buyers.
Tip #4: Quality
Quality of the construction is a hot topic these days considering the issues that some new major apartment complexes have had. Viability plays a part in what to look for when buying property.
Poor quality construction, along with improper aluminum cladding, are concerns that will reduce your property’s value. When buying an apartment, always research your potential purchase to see if there have been any issues or work required. It is also a good idea to engage professionals to ensure your property doesn't have $50,000 worth of problems. An assessment by a building and pest inspector will mitigate your risk and potentially save you thousands.
Tip #5: Think outside of the box
One of the best tips for first-time buyers has to do with style. Don't be afraid to invest in apartments with unique features. As more apartments spring up, individuality can be a great selling point and a way to differentiate your property from others on the market.
Apartments with period features are always favored, as are designs from well-known architects. The interior design of an apartment can easily be changed; the exterior, however, cannot.
There’s no one-size-fits-all method for buying an apartment. But you won’t go wrong by taking a cautious approach that considers all the elements involved before making a decision.
Article written by urban.com.au