Top Tips for Buying an Apartment
You should obtain an independent valuation before you purchase an apartment. The valuation can help you negotiate with real estate agents and give you an indication of the financial situation you want to be ready to offer. Moreover, it is advisable to take a strata report. It will tell you the financial health and physical state of the apartment complex. In fact, it will reveal where there are complex issues.
This is a vital thing to consider when buying any real estate property. You should note that poorly located properties are difficult to rent and sell. Thus, they will suffer from low capital growth. Some of the vital things to consider include:
- Proximity to transport, amenities, and shops
- Rental vacancy rates
- Potential for capital growth
- Demand for accommodation in the area
- Future development plans
The truth is that a functional and well-designed apartment is bound to enjoy growth and create an opportunity for cash flow. These are some of the things you need to look out for:
- Outlook and views – A great outlook is preferable, particularly if outdoor balconies and areas take advantage of the views.
- Occupant mix – go for apartments that have a higher number of owners as compared to tenants.
- Parking – check whether the apartment has secure parking for you and your visitors.
As an investor, you know that there are different ways of financing your investment. You can seek home loans that are tax-free. In this case, you can use equity from another property or your savings to reduce purchase costs and avoid the costly mortgage. You should avoid small apartments, served apartments, and inner-city apartments. That is because most lenders do not want to lend money for such apartments as they are volatile.
Nowadays, you can also get no-deposit home loans. These are not good for every person, and in some instances, you will have to make a contribution to cover the costs. In fact, some home loans do not require any deposit at all. However, they are available for people who have a higher income. Remember to watch out exit fees for these types of loans as some of them charge hefty fees if you close the loan with five years.