So you’ve already taken the plunge and made the decision to invest in an apartment. The next step is to look at what features make a great apartment that renters will love and will make you money when you sell.
Look for a feature that sets your apartment apart from others, whether it is a larger floor size, a view, hallway entrance or hardwood floors that could be polished up. Whether you are looking for an older-style or new apartment, make sure you study the rental yields and capital growth history of other apartments on the block. As your mortgage broker, feel free to request these figures from us to help you with this phase.
Blocks with fewer apartments compare favourably to a lot of units in a large block because each owner owns more of the land – which is important when you consider that land value accounts for a significant part of the capital growth prospects of a property.
Location, location, location! It might be a cliché, but it still rings true nonetheless.
The key to picking the right location comes down to simply having a look at what’s around the area – is there public transport in walking distance? Shops nearby or a café culture? A good location will not only bring higher rent but also stronger capital gains.
A car space broadens tenants appeal and gives you a valuable marketing point when it comes time to sell. Other attractive amenities include an outdoor area and a private laundry.
Look at the area’s demographics to help you profile your target tenants – then think about what amenities they would most like.
Apartment complexes that provide security doors and intercom systems are a better choice than those where anyone can walk into a building off the street.
Living areas that face north or north-west bring in the sunlight and have greater tenant appeal, as does a pleasant outlook (i.e. not looking onto a brick wall). It might be worth paying a little extra for a good aspect.
Low body corporate fees
Check out the body corporate fees. A building with lifts or other bells and whistles that have to be maintained will bump up the body corporate fees and eat into your rental returns.
If you have already found the perfect apartment but need help with getting your finances sorted or a loan approved, contact one of our brokers on 02 9299 7044.