With the Australian property market continuing to boom, investors and potential home owners alike are purchasing properties at record levels. Although there is no doubt that apartments can make sound investments, often even better than houses, the quality of an investment does depend on the quality of the apartment. Amid increasing concern about poor quality apartments, buyers are encouraged to educate themselves on what differentiates a good from a poor quality apartment, or encouraged to hire a buyer's agent (also known as a buyer's advocate) to assist. Here's why:
You need to understand what constitutes a 'bedroom.'
On the surface, it is easy for a new buyer to understand how many bedrooms an apartment may have – they count them when inspecting the property. However, this task is not as easy as it may seem. Even though an apartment may be advertised as 'two bedrooms', if one bedroom doesn't have a window or a built in robe, it may technically not be considered a bedroom and as such the rental/or resale value of the apartment may be affected in the future.
A buyer's agent, however, will have express knowledge of what constitutes a bedroom and will be in a better position to understand the true value of the property.
Space may or may not be the key to a good apartment
Although it is possible to estimate the value of an apartment based on location and size, space is not the ultimate determinate of value for an apartment. For example, internally, if an apartment has good quality appliances, employs various innovative space saving techniques, and has notable features, for example a bath, these can compensate for less total space. Similarly, the quality and quantity of external features, for example, a pool, tennis court, BBQ area or a concierge, can also substantially add to the value of a property.
A buyer's agent will be able to expressly advise you on how to value certain apartment features when assessing the overall value of an apartment.
Understanding location and potential
Buyers are often attracted to apartments advertised in 'high growth' areas, believing they will make the best investments. However, apartments in areas labelled 'high growth' are often done so speculatively. To understand the true potential, buyers must understand the property location, available transport, available amenities, crime rates, and more.
For this reason, it is always advisable to consult a buyer's agent, who will have full knowledge of every aspect of 'potential', and will hence be in a better position to advise on the true potential of an apartment.
Apartments can be both great investments and poor ones. Ask a buyer's agent, such as wbp property group, to ensure your investment is a great one.Share