Benefits of investing in apartments

Not so long ago there was a belief that it was better to invest in a house or duplex rather than an apartment. The reason being the value of the investment was perceived to be in the land, so investors focused on buying houses where the land value would appreciate for years to come. However, with the rapidly increasing population, a growing trend of people preferring to live in apartments close to infrastructure and offering great facilities, plus the high cost of buying real estate, apartments are increasing in popularity and proving to be a high performing investment choice.

Here’s a deep dive into some of the key benefits of buying an apartment and some points to consider when making your selection.

Affordability

Apartments offer an affordable entry point for first time investors. The lower outlay means fewer risks and more investment choices. It also gives investors who are cashed up the opportunity to buy multiple apartments, enabling them to create a diversified portfolio and spread their risk.

Mass buyer appeal

Apartments are also popular for a wide range for buyers – for first time buyers, downsizers and other investors. So when it’s time to sell your investment, your buying audience is broader, giving you more opportunity to appeal to the mass market which creates competition for your property and drives the price higher.

Building management

Another advantage of owning a unit is that everyone shares the cost of building repairs, maintenance and building insurance. Keep in mind the more facilities and amenities your building has the higher the fees. But with this also comes greater potential for higher future value and the opportunity to increase your rent.

Top tips for buying an apartment as an investment

Expert tips

Real estate expert Andrew Winter, suggests choosing an apartment in an area where the unit features something unique to what houses in the area offers, such as water views, closer proximity to the station or other amenities*.

He also stresses the importance of choosing the right location, “Apartment living in outer suburban locations and rural areas is just not the norm. When something is not normal in the housing market it is often not sought by buyers” or renters for that matter. Inner city and urban locations are preferable for renters and future buyers and he believes should be considered as the preferable option by investors.

Be aware of the fees

Once a seller hands their property over, you immediately inherit all of the attached council and strata fees.

Strata fees cover the property’s grouped maintenance and building insurance fees and are collected by the building’s owners’ or manager. These fees are ongoing costs that will continue to absorb your finances, generally quarterly, even after your initial property purchase payment, so it’s important to incorporate these into your ongoing budget.

Understand the ratio of renters vs owner occupiers

The more central a building is the more popular it will be with the rental market and as an investor this can be positive. However, if the whole block is rental stock, it can affect demand. Tenants have more choice putting the power in their hands to negotiate on the price. Try and find out the ratio of renters to owner occupiers.

Orientation

Property experts agree that buyers should look for an apartment with light, views and practicality. In addition to that Andrew Winter suggests buyers “avoid units with no outlook or those that look on to air conditioning condensers or a solid brick wall” if you own a property like this expect the price to allow for this negative as many buyers won’t consider this aspect no matter how cheap.

What level is best?

Experts also suggest not paying a huge premium for apartments on higher floor in high rise buildings. Many renters and future buyers don’t like being over the 5th or 6th floor. Whilst young professionals may love a view from up high – they may not love being blown away every time they step outside.

If you’re looking at an apartment in a quieter suburb, your tenants will most likely be young families or empty nesters. These tenants often look for easily accessible but safe, smaller apartment blocks with a unit of the first two floors.

Outside space

Property expert Andrew Winter suggests that whenever possible you should buy an apartment with a balcony or terrace and ideally ensure it is big enough to put a table and 2 chairs. It offers a huge bonus to the people who live there and makes your property more popular for renters and buyers down the track.

Apartments are becoming increasingly popular in Australia and if you’re careful with your investment selection and pay the right price they are very popular with renters and can pay dividends in the future when you go to sell.

There is a whole generation of people leaving home or migrating to Australia who are looking at apartment living as their preferred choice. Buying an apartment as an investment is as safe as houses – if you buy the right one.

Thinking about buying an apartment? Make sure you download our free Open Apartment Inspection Checklist, it’ll walk you through everything you need to look out for when inspecting an apartment to make the process as easy and stress-free as possible.

Expert Advice – Does Styling Boost Your Sale Price?

To style or not to style your home when selling, is a question we are often asked. We all have opinions, but we put this to a panel of leading real estate agents to find out if it really does make a difference. Learn what styling means, if it does really pay to style your home, what the benefits are and where you can get expert advice to make the most of your property.

Does it pay to style your home?

When, Why and How to Style Your Home

Styling your home to look its best will boost final sales price between 7.5-12.5 per cent, according to a survey of the top agents in the LJ Hooker Network in Australia.

The surveyed agents were strikingly unanimous in their opinion of how much styling can impact the sales price. The agents surveyed represent the best real estate knowledge available in Australia, and consist of 23 members of LJ Hooker’s elite Innovation Team.

What Does Styling Mean?

Styling means to decorate and organize your home and garden to look its best on inspection days. We buy houses for cash.

It takes a bit of work and time to get it your property looking its best. Vendors can style their own property, but LJ Hooker agents agree it is far better to consult an expert who has decorating experience and knows what is the most persuasive for buyers.

Not everyone can afford to pay for an expert to come to their home and that is why LJ Hooker has created an in-depth guide to styling your property when selling. The guide is full of tips, tricks and strategies that you can use to make a memorable first impression on potential buyers. To find out more click here.

Our surveyed agents believe it is much more important to remove smells than to install new fixtures and lights, according to top agents surveyed.

The Top Benefits of Home Styling

Selling a home is never an easy task. Let’s be honest – it takes a bit of work and a lot of patience! But according to our panel of leading real estate agents taking time to style your home to sell will make a big difference to how many buyers you attract, how quickly you sell your property and the price you achieve.

  • 87% of top agents believe you will earn a higher sales price by styling
  • 70% you will get a quicker sale
  • 65% say you’ll attract more bidders or interested parties at auction
  • 48% say you will receive more offers if selling by private treaty.

When Does it Make Sense to Style a Property?

It goes without saying that it’s important to style when the property is empty, messy, dirty, crowded or poorly decorated. However to make the most money out of ANY property it is important to spend time styling it – from making a good first impression, to clearing the clutter, to depersonalising rooms so potential buyer can imagine themselves living in your home….the list goes on.

There is something that can be done to every room in every home to make it more attractive to buyers.

Many people believe that buyers are entranced by the smells of baking cookies, bread or brewing coffee during inspections. However, few agents agree. Most felt that buyers have a negative reaction, worrying that the pleasant smells are intended to mask something undesirable.

Instead, agents’ top tips for the day of inspection are to remove pets and their paraphernalia, clean up the garage and closets and display fresh, cut flowers.