Picking the best apartment in a development. Apartment living is a popular way for many Australians to occupy blue chip suburbs or inner city locations without paying the price of a stand alone house.
When looking to purchasing an apartment in a development, you’ll soon discover that not all apartments are created equal. Some are shaped differently, others may be larger, some feature a courtyard or balcony, while other opportunities may offer a view or aspect.
When reviewing an apartment building, you’ll soon learn that many apartments within the dwelling will differ. Having such a diverse range can be confusing when spoilt for choice. If you purchase to occupy or invest, your decision to what you choose may also vary. In this market insight we provide some feedback around picking the best apartment in a development.
Why do investors and owner-occupiers pick differently?
Investors and owner-occupiers basically have different motives to purchase. An investor will emphasis on the bottom line. They will asked themselves, will it make me money and will it be easy to rent. On the other hand owner-occupiers consider their quality of life. They will visualise on living in the apartment as opposed to prioritising their plans to making money from it.
One objective that does remain the same among all types of buyers is the desire to see it appreciate in value over time.
An investor who has sourced property advice will know that there is often a big difference between properties that look appealing and those that present as a good investment. A savvy investor will be less emotionally attached and be purely driven by the income and growth prospects. Owner-occupiers will focus on the apartments functionality, the storage capacity, room sizes and whether there is a captivating view or outdoor space to entertain.
What do investors look for?
When making an appropriate investment, investors look to assess the risk and return trade off. The more you pay, doesn’t automatically benefit with a higher rental yield, nor does the cheapest apartment represent the best value and capital growth potential. Investors will want to buy an apartment that will ultimately rent out easily. The unit will provide a low maintenance solution, while the outgoings are feasible.
Investors will find it less rewarding to choose an apartment that feature luxurious amenities such as swimming pools, gymnasiums, cinema, roof top terraces and other large communal spaces. Though residents will thoroughly enjoy the internal amenities, these communal spaces expensive and reduce the rental yield. They may be tax deductible but they may not increase the value of the apartment.
What do owner-occupiers look for?
Owner-occupiers are more emotionally attached and will have an array of requirements both internally and externally. This type of buyer will choose an apartment in a development that offers a spacious open floor plan. They will focus on the bedroom sizes, kitchen layouts, natural lighting, fixture and fittings etc.
The layout will be very important.
- If its a two bedroom apartment, will they share a wall or will there be a bathroom or living area separating them?
- Will there be a view of the city or reserve?
- Will there be an outdoor space to entertain?
- Does the apartment come with a balcony or courtyard?
- What sort of security will we have?
- What type of car parking facilities are there?
- Does the development offer any on-site amenities such as a swimming pool or roof top terrace?
Essentially owner-occupiers are willing to increase their budget to purchase the right floor plan in the right location.
Picking the best apartment in a development
To increase your chances its all about getting in early. The advantage of buying in the early stages of an off the plan apartment, is the fact you can pick the best one that suits your individual needs. As the apartment commences construction, you’ll start to lose the best ones to buyers who had the confidence to purchase early. The disadvantage of getting in early, you have to wait a long time, however the positive, you only have to pay a 10% deposit and pay nothing else until settlement. The old saying “first in, best dressed’ rings true when buying an apartment in a development.
At Crest Property Investments, we also find having a kitchen island bench to be one of the most satisfying features within an apartment. An apartment in a development will have the benefit of modern kitchen appliances, but will it have sufficient storage to reduce the potential for clutter. A view point is also popular contributor. It increases the ability to sell it in the future and may have some influence on increasing the rental yield. Every purchase needs to be assessed on its merits and with your individual circumstances in mind.
If you’d like assistance in purchasing a property, we specialise in sourcing new and off the plan properties for buyers. We also do not charge fees to buyers. If you’d also like to read more tips when selecting an apartment, you can visit our market insights section on our website.
Feel free to contact us now for a free consultation. We welcome the opportunity to help. Our YouTube channel and Market Insights also provide a wealth of information to assist you with many areas relating to property.
While we have taken care to ensure the information above is true and correct at the time of publication, changes in circumstances and legislation after the displayed date may impact the accuracy of this article. If you want to learn more, please contact us. We welcome the opportunity to assist you.
May 2022
