Are you looking at becoming a property investor? Purchasing an investment apartment is often a great place to start.
Apartments are traditionally cheaper than houses, and depending on where you look, there are usually more of them to choose from.
Here are a few of the benefits of buying an apartment:
- An apartment is usually far cheaper than a traditional house. This is because the cost of buying a house includes the land value, and therefore has a higher entry price than a small apartment.
- You will share the repair and maintenance costs for common areas with other unit owners, usually through a body corporate scheme. With a house, you shoulder all the costs.
- Council rates are also higher for houses, and they even require land taxes in some states. So, when you are paying smaller fees on a small investment apartment, the returns on your investment can potentially be higher.
Market conditions are also becoming more favourable for unit investors. Thanks to a slump in the number of new apartments under construction, an undersupply is forecast for at least the next few years on Australia’s east coast.
As the post-COVID property market begins to cool in some cities, units are likely to be more resilient compared to houses.
Apartment growth cycles have, historically, been less volatile and the rental return for units is currently rising faster than capital growth.
Now that you know the benefits of buying an investment apartment, here are our top tips on finding the one that is right for you.
Research the right location
Location is one of the most important factors to consider in choosing the right property for investment. Depending on your strategy, you would most likely want to invest in an apartment where demand is high.
Small space apartments are usually in-demand in locations where young professionals are. Look at the city centre, employment hubs, universities and popular nightlife destinations, as well as areas where these places can be accessed via public transportation.
Also consider what other properties are in the immediate area of the apartment, and of course, the level of security.
Analyse the market data
Data gathered is only as good as how it is used. When analysing the market data, your aim is to find a location where you can maximise the profit potential of your investment apartment.
You can count on us for guidance
We are dedicated to helping you make the right lending choices for your investment and assisting you every step of the way.
Depending on your current financial situation and investment strategy, a small apartment could be a good way to start, especially for a first-time investor.
If you’re looking to buy an investment apartment, we can line you up with the finance you need. Get in touch and we’ll get the ball rolling with pre-approval on your finance.
