While there is a multitude of things to look for when choosing an apartment for yourself, there are even more considerations to take into account when looking for an investment property. Here are a few tips to help you find the perfect investment property.
The first thing to consider when looking for an apartment is the kind of renter you’re seeking. Bearing this in mind tends to guide the location, size and cost of the investment property you are seeking. For example, if your ideal renters are families, then you’ll be looking for a place with more bedrooms, generosity of space and perhaps an outdoor area.
The physical state of an apartment is indicative of the amount of maintenance it will require and how much it will cost you in the future. When viewing apartments, pay attention to the construction materials used, the level of glazing and water tightness, the effectiveness of insulation and the overall quality of construction.
Due diligence is important, so it pays to research the architects, builders and developers behind the project before you buy. Check out the quality of their previous developments, and speaking to previous buyers of those projects can also help inform your decision.
The quality of lighting and the number of power outlets are an important aspect to consider. Ensure there is ample lighting and easy access to outputs for those living in the apartment.
Look at how recent the appliances and fittings are within the apartment, and whether they use new technology. It is worth researching the brand to find out the longevity, quality and functionality of their products.
Another key consideration is the general environment of the apartment. Is the apartment well ventilated? Are there any strong odours? What’s the outlook like? Is there sufficient natural lighting? Is there parking?
The next thing to think about is the community surrounding the property. Is the area considered safe? What is the quality of the local amenities like? A property near schools, supermarkets, dining options and parks will be more desirable to a greater selection of renters.
Once you find a property which ticks all the boxes, the final step is to assess the financial benefits of the apartment. Ideally, you’d want the rental value to outweigh the outgoing weekly mortgage payments. Ensure you’re able to charge a competitive market rate in order to keep the occupancy rate up, and if achieving this means upgrading appliances, redecorating or renovating, then it’s important to take these costs into account.
It’s also always a good idea to look at valuation trends across the suburb. Have there been any increases in the past five years? Are there any new infrastructure developments planned for the neighbourhood in the near future?
Once you’ve gathered enough information, completed a thorough inspection and feel confident in your decision, then you’re ready to make an offer on your first investment property.