6 essential factors to choose the best apartment when investing
Many Australians today are going into apartment investing due to its high success rate on returns. Although this is true, it does not necessarily ensure your success. There are certain variables you need to take into account so that you minimise any risk on your investment.
Despite there being many, the following fundamental factors will serve you incredibly in determining whether an apartment is lucrative or not.
Research
As basic as it is, research will be the starting and most important step in your investment. You must be able to decipher between what’s hot and what’s not.
In your search, find out what’s in demand and in what areas. Aside from the internet, speak to experts, view local ads and do everything you can to collect as much data as possible.
Location, Location, Location
As overused as this term is in real estate, it’s still the most fundamental to your investment’s success. More than the apartment interior itself, the location will have the biggest influence on the interest of tenants.
Make sure you aim to invest in a major city if possible, and to avoid rural areas. If your capital does not allow for this, then be sure to find a deal that will have proximity to hot sites where a large population resides.
Parking
An apartment with an enclosed locked parking garage cannot be understated, especially if you’re purchasing in an area that may be near a high crime rate sector.
If your tenants are forced to park outside, this will be a big turn off for certain individuals. When possible, always ensure there is designated parking space that is safe, the extra cost will be worth it.
Renovation
This depends on your budget and the state that the apartment is in. If you are financially comfortable and the apartment space is rundown, then renovation should be high up on the priority list.
There are not many things that will better yield an impressive return on your money than fixing up an apartment so that it attracts your ideal tenants. The risk is attracting the opposite due to your lack of respect towards the property.
Public Transport
Although this is tied in with location, it deserves its own heading. If buying in a city is too out of your budget right now, make sure that wherever your purchase, it has convenient access to public transport.
The fact is that most people commute to work, and if your location does not allow for this to happen in an easy way, you simply won’t gain half as much attention as you could.
Background Check
This applies mainly to new apartments, be sure to research not only the developer, but the builder as well. This means credentials, past work, what tenants say from their other projects and so on. Most people don’t take the time to conduct it despite its massive returns in data.
This alone can save you a whole heap of money if you find out that all their past tenants and associates are not happy with the work they have done, and the opposite is true as well. If you’re unsure about the apartment’s credibility or sustainability, a background check will give you enough information to come to your own conclusions.
When applied, these 6 factors in choosing an apartment will skyrocket you ahead of the masses when beginning to invest in apartments. Some of these do take effort, but that is what will ultimately eliminate the risk of your investment and increase the chances of a massive return.
More than anything, be patient and don’t rush into anything when it comes to choosing an apartment. To get started on your investment journey, contact us today!
