Top tips for buying an apartment as an investment
Posted on 22 SEP
When choosing an apartment to rent out there are some specifics that can make a big difference to the desirability of your property. First is the number of bedrooms and floor size. Two bedroom apartments are most popular, and if you’re looking for a two bedroom unit, look at buying something above 80m2 and above 110m2 for a three bedroom. More bedrooms mean that as an investor you can charge more rent, and your tenants can split the rent further to reduce their costs.
The position of the unit in the building is the next thing to look at. If your unit is in a quiet suburb, your tenants or buyers will probably be young families or empty nesters. These tenants will be looking for an easily accessible but safe, smaller apartment block with a unit on the first two floors. Renting families are likely to want an apartment with its own garage or allocated parking spot. They may also pay more for a home with a good view of the city or harbour.
If you are looking to buy in an inner city apartment block, you will most probably be renting your unit to young professionals. In the upper-end markets these tenants will pay for good views, but in the general tenant market, any level of the building will work.
A unit which is newer or has been renovated to incorporate modern open plan living will also be more attractive to tenants. Look for an apartment which provides plenty of natural light and areas which can be used to entertain and relax.
Seasoned investors have told us that no matter who your market is, the ground floor of an apartment block is by far the best choice for an investor because you don’t eliminate any of your market. If you go above the ground floor you eliminate both the older generation who don’t want to go up the stairs and people with young kids.
Finally, as a landlord, you may be better off buying a newer apartment as there is generally less maintenance involved, and it may also be easier to rent out.
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