3 Essential Tips for Investing in an Apartment
Investing in an apartment can be a very rewarding exercise but doesn’t come without its challenges. Thankfully, we know all about apartment investing and we’re here to share. If you’re interested in learning our 3 essential tips for investing in an apartment, then you won’t want to miss this!
01. Get more savvy with $psqm rates
When purchasing or selling a property, a great way to stay ahead of the game is to be well versed in all your dollar per square metre rates as they can be a leading indicator of property value. The $psqm rate will help you more accurately compare each property based on similar merits, meaning you can rest assured you’ve secured the best deal. However, remember that it is only one metric amongst many, and rates can vary greatly depending on how much outside space there is versus internal floor space, the views, the location or aspect and parking/storage, so don’t feel pressured to rest all your decisions on it!
02. Have an investment strategy
Having a strategy is imperative to ensure you get the best out of the investment property financially. Why are you investing? Is it for the rental income? Do you plan to negatively gear the property, or are you aiming for capital gain over several years? If you have the time and capability, being able to add value by way of renovation or presentation can ensure you extract more capital value in the end. Do thorough research and understand the parameters of renovating in the building you are considering buying in. Look into access to the property, the committee’s flexibility and by laws which might restrict works you can do – ask your agent if you are unsure. Most importantly, run the numbers before you buy. Buying and selling property can be expensive, when you add stamp duty, holding costs, conveyancing and so on. Consider how long you intend to hold the property, if you plan to ‘flip’ it then factor in your selling costs and capital gains tax so that you have all the information when it comes time to divest.
03. Utilise strata power
As an owner in a strata titled building you have the right to have input about how the building is run and maintained, don’t leave these major decisions up to others as they may greatly impact your investment property. We encourage investors to be actively involved in body corporate matters. You are entitled to more than just the air space of your apartment, ensure you exercise your unit entitlement rights over decisions relating to the common areas and stay involved in maintenance to ensure they are tidy, presentable and up to current standards. As you won’t be living onsite we understand it might be tempting to leave it up to those who do, but a well-run committee could save you thousands of dollars in the future, and dramatically increase your investment’s saleability and rentability too! Look for opportunities to reduce costs, like switching traditional incandescent bulbs with LED lights or negotiating bulk rates like energy discounts. If you feel like your common areas need some remodelling, then it’s time to start developing a plan with your committee.
We are for apartments.
If you are considering buying or selling your apartment in Sydney city or its surrounds, we would love to help you. Ayre Real Estate are specialists in apartment living and ready to help find your ideal property. Talk with us today to find out more.
