Investing in Apartments – Things to Consider
It can be difficult to know what kind of property is right for you. That’s true whether it comes to a property to live in or invest in. The first consideration of every home purchase is that it should be liveable, but beyond that there are dozens of potential pros and cons to every property. In this article, we will discuss the advantages and potential shortfalls of investing in apartments.
No Garden and a Body Corporate
A major advantage of apartments is that they don’t require as much maintenance as a house. There is no grass to mow and no roof to clean. The body corporate will charge fees, but in exchange will take care of all building and exterior maintenance.
However, this can also work against you in that changes to apartment appliances and structures may be opposed by the same organisation. It is therefore imperative that you are satisfied with the apartment as it is, rather than planning a series of renovations.
It’s a fact of the Auckland Unitary Plan and more high density living in the offing that neighbours are getting closer together. This can be an issue whether you plan to live in your apartment yourself or in the more likely event of planning to lease it. It is worth investigating the reputation of the building you propose to invest in, not just the interior of the apartment itself. A great way to do this is to review the body corporate minutes. For one thing, buildings with poor reputations attract lower rents. For another, they are more likely to have inter-tenant complaints which can be a hassle for landlords. You can get information on the building by researching the body corporate that manages it.
The most important value determining factor of apartments is location. Apartments in rapidly expanding areas are likely to offer substantial capital returns over a few years. People are willing to pay more to live closer to where they work, and with the way that property and rent prices have been increasing over the last few years, sometimes investing in apartments is a good way to get your foot in the investment property door.
Age of the Building
Unfortunately, most apartment buildings do not age well. While some age and become neighbourhood institutions, others gain chronic conditions and fall into varying states of disrepair. Major repairs and renovations are difficult and complicated when you need to organise several disparate renters who are just trying to get on with their lives. For this reason, if you are looking to invest in an apartment think seriously about how old it is and how many years you are intending to hold onto your investment.
Contact Walker Weir to Manage your Investment Apartment
Walker Weir are highly experienced and reliable property managers in Auckland. We manage all kinds of properties and can oversee the entire process of renting, from tenant selection to hiring tradespeople for repairs. We even offer a rental income guarantee. Call us today on 022 657 9432or contact us online.August 6th, 2018