15 Oct 2010
A lot of people choose to invest in units over housing as they generally require less maintenance and are cheaper to buy. But before you purchase an investment unit there are a few things worth considering.
The first one is the location. You need to make sure the area you buy into offers a high rental population and good monetary returns.
Suburbs right next door to each other aren’t always equal, so ensure you choose an area that people can afford yet will also provide reasonable returns for you. Apartments found in cities, by the coast or in suburban areas are generally all popular places for investment units.
Also worth considering is the type of apartment you want to buy. Think about the area you want to buy in; if there are a lot of families around then a one-bedroom or studio apartment may not be very popular. An area with lots of young single professionals however would probably snatch up a smaller apartment in no time.
The facilities in the building of your apartment may also create a drawcard. If your apartment complex has a pool, tennis court or gym then it is likely you will have more interested tenants and therefore you may be able to charge a higher rental price.
When buying an investment apartment though it is very important that you clue yourself into the strata or body corporate costs and sinking funds that apply to you. These are annual costs that will need to be built into your budget.
In general newer apartment complexes have lower sinking funds because they require less maintenance than older buildings, but newer buildings will probably come with higher strata or body corporate fees. Before you commit to anything make sure you know the ongoing costs you will have to account for.
If anyone has any more questions or would like some more advice regarding property investment then please get in touch with more because I’d be more than happy to help.