It doesn’t matter how many apartments appear, there is always a great demand for this property type for solo renters, couples and even families. It’s really no surprise that property investors take a keen interest in apartment developments and are always looking for a great opportunity that presents itself in the market. If you are thinking about getting into the property market, there is a lot to consider. Today we are going to outline a guide to get you started in apartment property investment that will kickstart your next steps to getting those keys.
Body corporate management
New investors tend to get swept up in the postcode, amenities and fine furnishings of an apartment and don’t consider factors like body corporate management until they sign the dotted line. The structure of most body corporates looks the same, although the rules and inclusions will vary depending on the size and build of the apartment block. As an apartment owner, you will need to have visibility of the issues and announcements that are communicated through the body corporate, and you will need to contribute financially to repairs and maintenance as they occur along with the other owners in the complex.
Body corporate is quite standard and works to protect the integrity of the apartments, although you must be aware that these costs could arise at any time and have a reserve ready in the event that your apartment complex needs to undergo some work as soon as you become the owner.
Understand projected rental yield
A smart property investor will look at more than just the aesthetic features of an apartment, they assess the rental yield for that offering and make a decision that is going to be the most in-demand and receive the highest rental yield. Sometimes this means investing in an apartment that is older than a new build, but the popular location and views could make this older property a smarter investment. There are many resources out there that can assist you in generating an accurate rental yield, so don’t rush this step and get in touch with real estate agents and property managers so you are getting a well-rounded snapshot of the apartment and its return potential.
Consider a buyers advocate
Now that you are getting ready to purchase your apartment, you want that buying process to be seamless and made under the right conditions. This is one thing in theory and quite another in practice, as many struggle to remove emotion from the decision and act from their heart rather than their head. A buyers advocate can work with you in establishing how much you want to spend, your limit and the conditions of the sale (conditional, extended cooling-off period, etc). A buyers advocate can then actually attend the auction or communicate with the real estate agent acting to your best interests. If this is your first property investment, this could be the safe route to take.
When you have bought your investment property, you will probably be excited to look for your next investment opportunity and not be weighed down by managing your apartment rental activity day-to-day. This is where a property manager is worth their weight in gold as they take those administrative duties off your plate and free you up to simply enjoy an automated income. They also have an unrivalled knowledge on the suburb your property resides in and can look for quality candidates who will meet your rental expectations and manage any tenant and maintenance requests.
We hope this guide has highlighted the four steps to take in securing your first apartment investment, and you have the information required to pursue the right investment that meets your long term plan for wealth generation.