It is hard to know how and where we should invest our hard-earned money. There are a number of asset classes, from the stock market to Bonds, but property seems to be the one area most of us feel safe investing in. Of course, we can choose to invest in many different types of properties, and apartments seem to be high on the list of savvy investors. But what are the real perks and pitfalls of investing in an apartment? Read on to find out what to expect.
If you plan on investing in an apartment, then body corporate is something that you will need to understand. Strata title management in Melbourne, and any quality body corporate organisation, is tasked with looking after the public areas in an apartment complex. This includes areas like parking, the pool, gardens, laundry services, security, and any other additional amenity that might come with your complex.
Body corporate is very advantageous if you intend on your apartment being an investment property, although it is also useful if you intend on living in the property. The body corporate fee will vary depending on your property type and what is included, so be sure to understand what that investment is before you purchase your apartment.
When you own a home, you definitively own the land that the home resides on. Owning an apartment is a little more complex. This might not bother most people, but you do need to accept the fact that the land is shared land, and any decisions will need to be made as a collective. It also means that when a suburb increases in value, the apartment cost might not increase as quickly as a house or townhouse because you only own the apartment and not the land. It is wise to research all property types so you know what you will and will not have.
The number of apartments in your suburb or city is going to determine the value of your property. It might also mean that your apartment is tenanted year-round, or it’s harder to find tenants. Cities with an oversaturation of apartments may find that property value is slower to increase and that tenant applications might try and barter for a lower rental rate, or you will struggle to rent the space for the number you are hoping to. Get a sense of what the demand is in your area if you are considering renting it out at some point in the future.
Modern amenities and low maintenance lifestyle
Apartments really offer a lot to downsizers and anyone who wants to live a low maintenance life while enjoying modern amenities. Apartments are typically more aesthetically pleasing than a townhouse or an old house, and so you can expect an attractive environment when you invest in an apartment. You also have the advantage of modern design and architecture, So while the space might be smaller than a house or townhouse, you can expect smarter storage solutions and the overall flow of the space is geared towards living.
Like any property type, apartments can be found in all locations, although modern apartments are being erected around popular hotspots, landmarks, and areas of real growth. This means that you can get a fantastic apartment in the heart of it all, whereas houses and townhouses cannot quite be constructed with the same proximity (and affordability). Having a house with a view is really quite rare, but having an apartment with a view is often a given. If location is important to you and having access to the things you need and the lifestyle you want to live, then it sounds like apartment living is going to be right up your alley.
We hope that calling out these peaks and pitfalls of apartments will assist you in making your decision about whether to invest in this property type. Not all apartments are made equal, so be sure to see a range of options so that you can hone in on what style and inclusions you are after.