Sunday, August 8, 2010

Tips for Apartment Investors

Domain had a good story with tips for apartment investors.
Extract:

"Many people invest in apartments because they often have a cheaper buy-in price than houses and are also thought to be a lot easier to maintain without gardens to worry about, and with the costs of building maintenance shared across other owners.

But what makes a good investment unit?

Location, location

You can't get past the fact you need to look for an apartment in a good spot. In the city, walking distance to public transport and shops is a must. Nearby schools can be handy but many renters are single or young, childless couples, so a school nearby is probably going to be third on the list after a train or tram station or a very reliable bus route that is here to stay, and shops, caf├ęs and other services. Buyers agents say you should look for a quiet side street rather than a busy main road.

Many renters are professionals who want to get into the city fast. For that reason, apartments closer to town are recommended over those on the outskirts by many buyers agents who argue they will attract higher capital growth. The downside is they often cost more to buy than units further out.

An apartment in an area where there's high development and plenty of other similar flats around would probably grow in value more slowly than an older unit in a pre-1980s building. That's because at sale time there could be stacks of similar new flats on the market but a well-built, well-located older unit will be a scarcer find."

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