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Top tips to purchase an apartment with confidence
The founder of Ayre Real Estate has shared his top tips for buying an apartment in 2019.
Adrian Wilson, founder of Ayre Real Estate, said investors shouldn’t be scared to buy an apartment in 2019, contrary to recent reports about building defects and faults.
“We are sympathetic to the recent issues a number of investors and home owners have had and are continuing to face. It is a real tragedy that anybody should have to go through the scenarios reported in the media. However, we are of the view that these issues are isolated to a faction of the country’s apartment buildings,” Mr Wilson said.
“The vast majority of new buildings offer profitable, low-risk investments. In particular, there have been some fantastic, high-quality buildings in Sydney that have recently been completed.
“When purchasing in a completed development we encourage investors to do their due diligence and use some readily available tools to ensure they are confident in their purchase decision. Just like you would instruct a building inspection prior to purchasing a house, the process is the same for apartments by way of a strata search. Unfortunately, it seems many people are unsure of the potential red flags to look out for, or they completely neglect this process.”
Mr Wilson said when it comes to off-the-plan purchases, “there is obviously more inherent risk as the building is yet to be constructed”.
“However, buying anything before you can see, touch and feel it on a ‘sight-unseen basis carries a degree of risk,” he added.
“Stick to a reputable developer and builder and ensure you have appropriate legal advice. I’ve seen thousands of people over my career do incredibly well from buying off the plan.
“In most cases, the risk has paid off with sound capital growth. Buyers should not be deterred from considering apartment investments but should do their homework to ensure they are comfortable with both the risks and opportunities that buying off the plan provides.”
Mr Wilson’s top five tips for apartment purchasing are:
1. Conduct a strata search
2. If the property is very old, consider also conducting a building inspection
3. Do some research on the developer
4. Due diligence on the builder
5. Homework and research the area for recent sales, rental rates and what buildings are popular or close to amenities and transport
Mr Wilson appeared on a recent episode of The Smart Property Investment Show.
To listen to that episode, click here.
