I want to live on my own and it’s all I can afford.
Yeah, plenty of trashy developments in the suburbs too. I’d be avoiding them too, obviously.
If you’re looking at an apartment as an investment you’re really going to have to look at it as a 20-30 year proposition unless you buy a good apartment in a small block in a high demand area IMO.
In terms of liveability, they’re easy and reasonably cheap to maintain but owners Corp fees can bite you in the ■■■ if you’re in a ritzy tower.
Would steer clear of any new buildings too tbh. Size gets smaller, designs more cramped, but price is higher.
I bought a two bedder in footscray a few years ago and found it perfectly liveable. Not sure apartment living is sustainable long term though, and honestly if I knew COVID would have happened I would have settled on a larger apartment or unit, with a bit more investment potential, further out. Bench space was always an issue so got one built in and it’s a complete game changer.
My $0.02
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Depends on how much you have to spend. Look in good suburbs like Toorak or South Yarra, older places have more space and less dramas in renovating.
Always buy something you are happy to live in.
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OK. I only ask because I recently had a similar conversation with my brother. Who wanted to buy an apartment, cause it was all he could afford, and wanted to get into the market.
But I raised maybe looking at a small unit or townhouse. When we worked through it, he could afford a bit more, and by maybe being a bit more flexible on location, find somethimg a bit more reasonable. As long as he could still see himself living in the area, it would work better for his lifestyle and future investment.
He did want to live in it for awhile, then maybe rent, and reassess his position.
Your financial situation will obviously be different and dictate your position. And if you can do some of the reno work yourself it changes the situation.
There are always opportunities though. Good luck with it all, hope it works out.
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The other thing to mention @somo84 , is that looking for place yourself is tough. We use a Property Advisor and while last time she cost us $5000, it was really worth it. She knew of properties that were not listed and had massive knowledge of capital returns, renovation costs and rents that were achievable. It is always good to get expert advice.
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I’ve used a few and recommended a few to previous clients as well. Its good to have someone take some of the emotion out of the purchase if your goal is investments.
Buying a home is a feeling, buying an investment is research.
Apartments can be very good investments.
You need to look for limited supply, so an apartment block of a relatively small size and in a location where few apartments get built. Rarity wins in property, that’s in any class.(housing, commercial, industrial etc etc).
If it’s not a huge premium 3 bedders make good investments over time, offering a higher yield. A LUG is another important feature.
If buying a new build only buy off a reputable builder. Check out their other projects.
Warning signs are people selling apartments at the 10 year mark of when a property was built. That’s when warranty ends. Or lots of recent sales.
IMHO you can’t go wrong with a 1970s era or older apartment in a developed suburb as a starter. Low rise. Sure they might be ugly ducklings(Art Deco stuff or reputed architect aside).
But being in a spot where new apartments can’t get built is golden, and they have very little which can go wrong with them.
Lastly again on property sales history. Tells you everything. Inner city Sydney and Melbourne, sales prices just constantly grow. Perhaps a little too slowly now for the outlay but still.
Somewhere like say the Gold Coast? You will see prices go up and down like a yo yo.(boom and bust kind of market), although that may change as I think lands starting to become scarce. There’s blue chip spots there now.
I’d be very careful on high rises, I mean for the reasons of lack of scarcity, building quality being the main ones.
I think if you buy into a complex with a hundred plus apartments, there will always be some for sale, that’s why I generally avoid them.
That being said, everything has the right price and if it’s a very good building it might be a good buy. Just a bit more homework needed.
Again if I was buying into a high rise I’d look for a unique apartment in it. North facing or extra car spaces or the penthouse/a 3 bedder instead of 1 or 2….
I have a mate who made good money buying up a lot of old 1 bedroom apartments and flipping them. His secret was just location. Established highly desirable suburbs.
Hope this helps. It’s just why I’m wary of new apartment blocks.
There’s some fantastic apartment complexes going up these days.
Always buy with natural light or the ability to add it.
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Sounds like a lot of. Just have money going on there.
Had no idea this was an option. Thanks for bringing it to my attention BF!
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My concern is that aren’t properties that are 40+ years old towards the end of their lifespan? I once lived in a unit in Glen Iris that was at least 40 years old. Something went wrong with the plumbing and it required taking out a few bricks. I asked the plumber if he does much work on places like that one. He said all the work he does is on places like that one.
Some plumbing and electrical is a lot less costly than more serious building defects.
Old apartments will often have terrible plumbing and electrical. (Particularly electrical)
The idea on an older apartment is that if it’s low rise and a little older if there are any building defects they have shown up already(and in strata notes)
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