Apartments can make really good investment properties.
We asked agents that we know personally, what questions you should be asking before you sign on the bottom line:
- What are the ownership costs?
Find out what the owner’s corporation and other costs are. Request to see the financials and minutes of previous corporation meetings and look for any outstanding legal issues or capital works that might be coming up.
- If you are buying off the plan, ask who the developer and builder are.
Research their delivery times and look at their past projects to get a good feel of their workmanship
- Who is the strata manager?
Again, if you are buying off the plan, research the strata manager. Operational costs in the first year are not an accurate reflection of ongoing costs, because most equipment will be under 12 month warranty.
- What is the parking situation like?
If you don’t end up getting a car space, you do not get an automatic right to a council car-parking permit.
- What developments are being built nearby?
Find out if any developments will affect your view or surrounding amenities.
- What are the vacancy rates?
If you are buying as an owner occupier, high vacancy rates will affect your capital gain. As an investor, high vacancy rates are probably not a good sign either.
- How close is it to public transport and amenities?
Access to public transport and amenities are very important, as residents are unlikely to have multiple car spaces.
- What is the quality of the internal fittings and fixtures?
Check for things like drawers in the wardrobes and power points. A lot of new developments skimp on these things.
- Is the building available for Airbnb?
If many units are being bought or are already used for Airbnb- it may affect your concept of amenity if you are an owner-occupier.
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