If you’re investing in property, it’s important to do so the right way. And while investing in a unit or apartment can be a good financial move, there are some serious traps to watch out for.
Older apartment and unit blocks, particularly the kind that were put up in large numbers in the 1960s and 1970s, can be a good entry point for first-time investors. But make sure to get a thorough building inspection, as these types of units can suffer from potentially expensive structural problems.
Again, if you are a first-time investor, you might consider buying something quite small to begin with. Do your research on the capital growth potential of a studio or a small one-bedroom, as this may be proportionally smaller than that on, say, a two-bedroom apartment.
Are you buying a unit in a block of 10 or a tower of 500? Remember that value is based on scarcity, so—especially if you are buying off the plan—buying in a smaller block will make you less prone to a sudden glut in the market, as well as allow you to offer a more unique option to potential tenants.
When it comes to apartment blocks, property experts differ on whether a top floor, ground floor, or mid-level apartment is the better option. Ground-floor units can offer greater accessibility for those who need it, but may be less secure than those higher up. On the other hand, it’s hard to beat a top-floor apartment with a great view. The best choice will depend on a range of factors such as the size of the building, its location, whether it has a lift, and so forth. Weigh up these factors carefully.
For specialist property investment advice, contact Rass Global Investments.