Apartment - Liviti Property

Are Apartment Pets Allowed by Strata in NSW?

Daniel Chadrawy on March 16, 2022

YES, by law, strata committees in New South Wales MUST NOT place blanket bans on people housing their furry friends in apartment blocks, according to a new ruling that was passed in 2021. Animal lover, Jo Cooper, decided enough was enough and took her apartment building’s owners corporation to the NSW Civil and Administrative Tribunal and, with the support of many other pet owners, a court decision was finalised and she won!

So, whether you and your miniature schnauzer need to find a new single apartment, or you’re thinking of introducing a tabby to your current living situation, you can rest assured that body corporate will not have blanket bans in place preventing you from doing so.

Strata By-Laws And How To Find Out If Pet Ownership Is Allowed

While this NSW court decision means that pets are officially allowed to live in apartments, it’s not so much a black and white ruling as there are still some technicalities that need to be considered by renters, landlords, any real estate agent involved in the tenancy process and, of course, the owners corporation.

What Are The Rules About Pets Living In An Apartment Building?

Though there cannot be a blanket ban in place, there are instances in which permission for animals to inhabit apartments may be refused. As per Fair Trading NSW, “An owners corporation can only refuse to allow an animal into the strata scheme if the animal unreasonably interferes with another resident’s use and enjoyment of their lot or the common property.”

So, what does it mean for a pet to “unreasonably interfere” with another resident’s use and enjoyment? The points below give a basic rundown of the kinds of things an owner can do in order to manage pets so they don’t “unreasonably interfere”.

Reduce/eliminate the noise of barking dogs and other loud pet noises.
Don’t allow the pet to run at, chase, attack or menace another resident or pets.
Take measures to ensure the pet does not cause damage to common property or the property of other residents.
Keep up to date with vet visits so they don’t cause any infestation or infection that could endanger the health of another resident or animal.

How Do I Know If My Pet Will Be Allowed In My Apartment?

You will need to send an application through to your landlord and/or owners corporation in order to gain permission for a pet to live on the premises. The process isn’t difficult and generally goes along with the usual rental agreements, but it can vary between apartments.

In some cases, you’ll need to provide a whole range of information and certifications including the animal’s name, type, breed, age, photograph, vaccination record and microchip number.

As long as it’s not clear that your animal could unreasonably interfere with another resident’s use and enjoyment of the complex there shouldn’t be an issue. Just know that the owners corporation cannot impose a blanket ban on the building.

Times Are Changing For Our Furry Friends And Their Owners

In recent years, more and more developers have been showing a positive response towards dog ownership and pets in apartments by introducing more dog-friendly, cat friendly, and all manner of other pet-friendly elements to their building designs.

A prime example of an apartment building catering to pet lovers and their furry family members is the contemporary Lotus Residence in Hurstville, South Sydney. Not only are the apartments themselves available in generous studio, 1, 2 and 3 bedroom layouts, there is also set to be an exclusive pet playground for residents to enjoy with their best buddies.

Looking around Australia, there are many other examples of forward-thinking developments going ahead that include innovative dog wash stations and safety rules that take into account our furry (or not so furry) family members.

What To Consider When Moving With Pets

Renting, in itself, can be a difficult process for a renter, especially those who find themselves moving home frequently. Adding pets to the mix can often be very stressful for tenants.

When it comes to pet-friendly moving and apartment living, it’s important to research different apartment blocks to see which ones might be more likely to provide a safe and happy home for pets.

Are you worried that your cat might try to escape if given the chance? Go for an apartment that’s not on the ground floor and doesn’t have any outcroppings near the balcony for your kitty to jump out onto. Does your dog enjoy being social but it’s hard to find time to take him to the dog park? Look for an apartment complex that offers pet playground facilities on-site or nearby.

The Do’s And Don’ts Of Keeping A Pet In A Rental Property

Most of the dos and don’ts of apartment living with pets fall back to the laws mentioned earlier in this article about causing “unreasonable interference”, however, commonsense and courtesy do also come into play.

Think about it from the perspective of neighbours or owners of rental properties. Why would they want to ban pets in the first place? Would you enjoy being kept awake by a barking dog in the unit next door? If you found that your tenant’s cats had scratched up the carpet, you wouldn’t be too happy, right?

If you’re very serious about moving into a new home with your pet or bringing a new pet into your current household, the biggest DO is to seek permission from strata, your landlord or both – whoever has a say should always be consulted.

It might help to introduce your new pet to neighbours to help them build a friendly relationship with your furry pal, so they’re less likely to formalise a complaint and more likely to speak with you directly if any “unreasonable interference” does occur.

Thinking Of Adding A Pet To Your Family?

It’s important not to rush into a decision, especially for those pet lovers not living in their own homes, or who own and reside in units or other strata titled properties.

Be sure to consider the size of your unit, whether there is access to outdoor spaces for pets who need them, the safety aspects of your home and whether you can afford to pay for a pet on top of current living expenses.

The last thing you want is to adopt a pet and bring it home, only for it to be unsuited to your living environment and not approved by your strata.

It’s so great to see NSW court rulings turning in favour of Jo Cooper and her pet-friendly ideals. If you’re looking to find the perfect home for you and your furry (or not so furry) family members, please don’t hesitate to reach out to our team. We’ve got some perfectly paw-some properties in the mix that cater to both humans and animals!

Call us on (02) 9056 4311 today or reach out to our property experts.

Old vs New Apartments: The Pros and Cons

Daniel Chadrawy on March 16, 2022

When it comes to buying a home, whether it be an apartment as an investment property, a dream home to live in or something completely different, the age-old question is always asked – Between old vs new apartments, which is better to buy? It’s an important question to ask but there really isn’t a simple, black and white answer.

To make things a little clearer, today we’re laying out the different pros and cons of old and new apartments so prospective buyers like you can make the right decision according to specific values, needs and circumstances.

What Are the Pros of Buying a NEW Apartment?

Buying new properties like off the plan apartments definitely comes with a whole range of benefits including the ones listed below.

#1 Helpful Tax Write Offs

New properties come with a very helpful incentive, which is the fact that they are great for claiming additional expenses against your tax. There are also higher depreciation benefits, especially when looking at the first five years after the home is built, purchased and tenanted.

Over five to ten years, investors can claim furnishings as a tax deduction in newly built properties, while depreciation can provide tax benefits for up to 40 years as that’s the official length of time the ATO has attached to a building’s life span.

#2 Likely To Attract Tenants

While there definitely are renters who love a good retro-style home, the majority of modern tenants enjoy the convenience and luxury of a brand new unit. Nowadays, apartments provide more value to contemporary tenants by offering elements like smart appliances, electronic security systems and other modern features & amenities that older apartments simply can’t offer.

It’s much easier to find tenants who are willing to pay a higher rental fee for a newer apartment, especially if there are amenities on site as an added bonus.

#3 Homeowner Security and Protection

For new buildings including off the plan properties in all states except Tasmania, Home Building Compensation (HBC) is a legal requirement that provides protection against certain structural/major defects that may occur in instances where solid construction is absent.

#4 Low Maintenance Overheads

Older properties tend to go hand in hand with higher maintenance requirements, whether it be a simple leaky tap, wear and tear or something more serious like foundational damage. The fact that brand new properties require less maintenance is a huge selling point, plus almost everything is under builder or appliance warranty anyway, so it’s unlikely you’ll be out of pocket if something does need to be repaired or replaced.

#5 Government Incentives

For property investors purchasing their first new property, the First Home Owners Grant is a fantastic government incentive to take advantage of. It can certainly help make the process of buying a home or apartment for the first time stress-free in regards to finding the upfront funds needed.

#6 Better Facilities and Amenities

New developments are often planned with an exciting array of communal amenities. If the property type is an apartment or villa complex, you can usually look forward to a leafy outdoor space to enjoy, the potential of gym and pool facilities, pet-friendly design, assigned parking spots for tenants and visitor parking and sometimes even café, dining or retail opportunities.

An older property is unlikely to host these kinds of valuable communal facilities.

What Are the Cons of Buying a NEW Apartment?

Though there are many reasons investors choose to buy a contemporary property, it does pay to look into the negative aspects that may come with new houses and apartments.

#1 Can Be Less Affordable Than Established Properties

While newer properties may cost a little more than older ones overall, the higher price is usually due to new apartments boasting extensive contemporary features and amenities like a pools, gyms, elevators, better parking facilities and garages and more.

The higher price point of new apartments is well worth it to take advantage of the impressive inclusions that older properties just can’t offer.

#2 Less Opportunity to Add Value

Most new apartments are constructed with modern buyers in mind, so they generally come with all the bells and whistles. This means owners have less reason and less opportunity to achieve capital growth through renovations or improvements.

What Are the Pros of Buying an OLD Apartment?

Purchasing an established property can be the perfect option for a willing buyer for many reasons. Here are just a few of them…

#1 Ideal For Adding Value

Aside from the quirky and homely character apartments built in older eras generally exude, an older style unit offers one advantage that simply can’t be matched by a off the plan property – the opportunity for adding value through renovations and improvements.

Even the simplest of makeovers can help improve tax depreciation benefits, resale potential, rentability and more.

#2 Older Apartments Can be Larger and More Affordable

Many investors will choose to buy an older apartment because they often tend to be larger and more affordable than their newer counterparts. While a new unit may offer slightly more modern lifestyle features and facilities, older properties will often have more spacious living areas without sitting at the same price point.

#3 Capital Growth and Proven Resale Value in the Property Market

When it comes to capital growth, older apartments will generally have established themselves in the market and will have a history including previous sale prices that you’ll be able to access, as will future potential buyers.

It is important to note though, new properties may not have the history, but a lot of research goes into making sure apartment developments will perform well in the market. Ask your property consultant for previous sale prices of apartments in the same building or other off the plan apartment sales in the previous five years within the area.

While it is nice to have a proven resale value history, it’s also good to look at the big picture and take on board credible research.

#4 Close to Established Infrastructure

Transportation, quality schools, medical facilities, retail and hospitality venues and many other property value boosting amenities are generally found within easy reach of older apartments, simply because the property would have been planned with the locations of existing and future infrastructure in mind, as areas were being initially built up.

What Are the Cons of Buying an OLD Apartment?

Making an investment in an older property comes with a range of benefits, but it also has its risks that sometimes veer buyers further towards buying new apartments instead.

#1 High Maintenance Investment Property

Whenever you buy property, there is going to be unexpected maintenance and repairs involved, more so with older apartments. As some investors choose to buy a property regardless of negative gearing, the initial investment can often put stress on cash flow, so it’s important to have existing funds to draw upon. We do see a shrinking percentage of buyers choosing to invest in old properties for this very reason.

#2 Lower Rental Return

An older apartment isn’t going to give you the same rental return value as a newer property. Old, unrenovated apartments are likely to come with outdated fittings and fixtures that don’t offer the same kind of appeal or functionality compared to new apartments.

#3 Less Tenant Appeal

Finding quality tenants is such an important part of property investment. A nicer and/or newer home will likely attract the kind of high-quality tenants a landlord hopes to welcome into their property, due to hosting contemporary features, amenities and design. An older, less modern apartment may not attract the same kind of tenants and could potentially lead to your apartment deteriorating quicker through damage from less desirable tenants.

#4 Lower Depreciation Write Offs

While owners of both new and old apartments can claim depreciation write offs via tax, new apartment owners generally enjoy higher rates as the property and everything in it is new and valued at a higher amount than an apartment that has seen wear and tear over the years.

Different depreciation write off rules exist for the property itself and the items inside it depending on its age and whether ownership has changed hands. Any property constructed after the 15th of September 1987 attracts capital works deductions for up to 40 years after construction and owners of new properties can claim depreciation on existing assets described as plant or equipment (air conditioning units, carpet, etc.). However, owners of second-hand residential properties cannot claim depreciation on existing plant or equipment assets unless they were the ones to purchase them.

Choosing Between Old vs New Apartments: What’s the Best Option?

The decision as to whether to invest in old properties, new properties or a mix of both sits entirely with the buyer. While we love to help by offering knowledgeable advice and guidance, each situation and circumstance must be approached individually.

If you’d like to chat with a qualified property consultant about your options when it comes to purchasing a property as an investor or owner occupier, give us a call on (02) 9056 4311 today!

We have a huge range of modern apartments available for you to take a look!

What Are The Best Suburbs Canberra Offers To Home Buyers

Lara Osborn on March 4, 2022

Introduction

In recent years, the nation’s capital has become one of Australia’s most sought-after places to buy a home. This is not surprising, given everything Canberra’s city centre and surrounding suburbs have to offer.

With art galleries, sports grounds, the Royal Australian Mint, exclusive restaurants, ample entertainment opportunities and, of course, Capital Hill, the location of Parliament House, it’s no wonder Aussies are flocking to live in such close proximity to our national capital.

Why buy a property in Canberra?

A much quicker question to answer would be, “Why not buy a property in Canberra?” There are way too many benefits of living in and around this fantastic city to list in just one article, but let’s talk about a few of them.

Canberra’s City Centre Is Vibrant, Yet Relaxed

Firstly, Canberra is Australia’s largest inland city. This means that even though it offers all the convenience, attractions and facilities of a big city lifestyle, residents can also enjoy a slightly less busy, slightly more relaxed vibe than they would in one of the major cities like Sydney or Melbourne, for example.

Recent Boost In Median House Prices

On top of the lifestyle benefits, Canberra’s median price of houses is on the up and up.

Although we’ve seen rising house prices all across Australia, Canberra has now hit seven figures with a 36.6% boom noted by Domain in their sales median house price data for December 2021.

Now is a crucial time to buy in Canberra and its surrounding areas while house prices continue to see an upward trend and provide opportunities for investors, young couples and other prospective homeowners in a steady financial situation for years to come.

Canberra is definitely not an expensive city to reside in, in comparison to others like Sydney and Brisbane, and securing a loan for a property in Canberra doesn’t have to be a difficult process.

Canberra Offers A Highly Family Friendly Lifestyle

Another benefit of buying a property in this beautiful city is the fact that suburbs all throughout Canberra provide fantastic neighbourhoods for families to live in.

Large blocks of land with backyards for kids and pets to enjoy, beautiful and sizeable apartments for modern families, couples and individuals to make a home, quality, zoned schools within easy reach, established public transport including a light rail system, local shops just a short drive from most homes and vast green spaces like pristine reserves and exciting playgrounds are all part of the joy of living in Canberra city and surrounding areas.

Best 10 Suburbs In Canberra

If you’ve taken an interest in buying a home located in a suburb in Canberra, the following list of the best ten Canberra suburbs (ranked by median unit price) may help narrow down your search and aid in the decision-making process.

1.Yarralumla

Yarralumba, located in the inner south of Canberra’s city centre, is an affluent suburb just a short six minute drive from Capital Hill, the biggest attraction in the ACT.

Its many green, leafy spaces include the Royal Canberra Golf Club and Yarralumla Dog Park, both of which sit on the banks of Lake Burley Griffin.

Both houses and units in Yarralumla are quite impressive and offer residents central access to all the benefits that living in the city and surrounds of Canberra provides.

2.Kingston

An affluent suburb, perched upon the banks of the Molonglo River, located within walking distance of Manuka Oval and the home of the exciting Old Bus Depot Markets, Kingston boasts arguably the most sought-after housing market in the ACT.

As one of Canberra’s oldest suburbs, it is also within close vicinity of Parliament House and the official residence of our Prime Minister, further backing the allure of investing in a Kingston home.

3.Amaroo

With many Amaroo residents considering it to be one of the best Canberra suburbs to raise a family, buying a house here could be a fantastic decision for a range of buyers.

Quality schools in the area include Amaroo School, Good Shepherd Primary School and Nido Early School, all highly accessible from anywhere in the suburb through public transport or self commute.

Fantastic sporting facilities and playgrounds add to this suburb’s appeal and the majority of homes are spacious houses situated on blocks with backyards for kids and pets to enjoy. Amaroo is just a short twenty five minute drive north of Canberra’s CBD, creating enormous value for professionals who work in the city.

4.Belconnen

Belconnen is a wonderful suburb for families, couples and individuals who enjoy an active lifestyle amongst a natural setting and homes are quite affordable with a median house price of around $602,500.

Plenty of parks and greenery provide a tranquil atmosphere, especially in the areas lining the shores of Lake Ginninderra.

With well-developed infrastructure and clever planning, Belconnen boasts a Westfield, fresh food markets, easily accessible public transport options and close proximity to the University of Canberra, plus an array of quality schools for children of all ages near to many houses and apartments.

5.Deakin

One of Canberra’s most illustrious areas, Deakin is located just five kilometres south west of the city centre. With Canberra Hospital a short seven minute drive away, Calvary John James Hospital within a minute’s drive and the comfort and convenience of many nearby government facilities, the Deakin housing market is booming.

The neighbouring suburb of Red Hill provides access to the Federal Golf Club, Canberra Grammar School and Red Hill Nature Reserve, all quality facilities.

Deakin residents of all age groups, family statuses and varied backgrounds have admitted to feeling fortunate enough to live in one of the best suburbs to meet their needs and circumstances.

6.Greenway

Surrounded on all sides by lush nature reserves, pristine parklands and beautiful bodies of water, the suburb of Greenway in the Tuggeranong region in the south of the ACT offers a range of cultural, entertainment and dining opportunities including Little Istanbul Turkish dining, Tuggeranong Town Park Beach and a sizeable shopping precinct.

A property in Greenway is located far enough from the city centre to enjoy a remarkably peaceful lifestyle, but not too far away that convenience is compromised. With larger blocks of land and sizeable homes available, growing families and retirees will find this suburb an absolute joy.

7.Barton

Barton is considered the ACT’s most lifestyle-friendly suburb by many and honestly, we’re not surprised. Its prime location, nestled between the Molongolo River and Capital Hill, allows homeowners the peace of mind that they will be purchasing in an area that should see significant price growth over time.

Barton is home to beautiful parks, many art galleries and the National Archives of Australia that keep the Australian Constitution safe. It is approximately four and a half kilometres (around a seven-minute drive) south of Canberra’s CBD. The majority of dwellings in Barton are units with the median unit price sitting at around $530,000 according to recent data (updated Feb 1st 2022) from realestate.com.au.

8.Reid

Bordering Canberra’s vibrant city centre is the lively suburb of Reid.

One of the many great lifestyle suburbs in Canberra, Reid is set to see consistent price growth as the market flourishes due to its close proximity to the city and its many restaurants, green spaces and entertainment venues, the Australian National University, Lake Burley Griffin, Canberra Museum and Gallery and much more.

Even more exciting, with a median unit price of $529,900, buyers can currently expect a median gross yield of 5.8% which is above the national average. This is quite possibly the best suburb for savvy investors to buy in right now.

9.Woden

Situated approximately 12 kilometres southwest of Canberra city’s limits, properties in Woden provide residents with the opportunity to enjoy a beautiful combination of tranquil suburban living with the convenience of a semi-urban lifestyle.

With easy access to Canberra Hospital just minutes away, as well as Westfield Woden shopping centre providing ample retail and dining opportunities, Woden is a highly versatile suburb, attracting buyers from all walks of life, especially since seeing significant median house price growth.

10.Gungahlin

One of the fastest-growing regions in Canberra, Gunghalin’s median house price sits at approximately $861,000, with a median unit price of around $424,000.

Much like many of Canberra’s lifestyle suburbs, Gungahlin promotes a healthy, active and interesting schedule with many parks and nature reserves in easy reach, as well as the National Dinosaur Museum and Canberra Reptile Zoo just a short drive away near Gold Creek Village.

No matter where your Gunghalin property is located, getting around and discovering all the facilities and amenities on offer is no problem at all due to an established public transport system and well-planned roads.

Buy A Property In One Of The Best Suburbs In Canberra

If one of the suburbs on our list has piqued your interest and you think it would be a good fit for your lifestyle, please don’t hesitate to reach out to our friendly team of property consultants who will happily provide you with some available properties to view.

You can call us on (02) 9056 4311 or just visit the Liviti website to get started.

To keep up to date with more news and information surrounding the current Australian property market, sign up to our blog newsletter below and and follow our socials.

Do Apartments Appreciate In Value?

Lara Osborn on March 3, 2022

For years it’s been a debate that a house appreciates while an apartment depreciates, so it will always be better to invest in a house rather than an apartment.

But is this always the case?

House Appreciates and Apartment depreciate?

It’s obvious that houses have better capital gain than apartments because the land they sit on tends to appreciate over time. However, do houses appreciate and apartments depreciate?

“Houses appreciate and apartments depreciate” is a myth that property investors in the property market often quote. This is, in fact, not always true.

Generally speaking, all buildings can be depreciated. Like any tangible asset, buildings depreciate through wear and tear and need to be constantly maintained. This is not always bad for investors as you can claim tax benefits on this depreciation, and the newer the property, the more tax benefits and the longer they will last.

However, land appreciates, and houses tend to have more land content. So, as a result, houses will have more potential to appreciate and offer a quicker capital growth than apartments.

However, in some inner-city areas, this is not always the case. A block of land in the regional suburbs, for example, is unlikely to be more valuable than floor space in Darling Harbour. Apartments in good locations will always have a lot of prospective buyers interested in them as time goes on.

As a result, when investing in real estate, it is critical to consider location as well as market conditions.

So do apartments increase in value? The answer is yes! A quality apartment in a great suburb can go up in value even more than a house in a less desirable suburb.

Investing in real estate entails purchasing a property that will appreciate over time and provide capital growth as well as good returns. It is not about investing in a specific type of property, such as a house, just because of the land content.

Houses as the only Investment option?

According to George Raptis, director of Metropole Sydney, most people think that when it comes to investment property, a house would be a better option due to the land that is attached to it.

“But here’s the thing: if you go out into the regional suburbs and buy a house and land package, you might pay $400,000. Of that, $100,000 accounts for the land, and $300,000 is the cost of constructing the property. So the part of the asset that appreciates is only a small portion anyway”. Mr Raptis said.

“If you buy an apartment in a premium land-locked suburb, the land has a higher value. There might be a block of 10 apartments where the land beneath is worth millions of dollars. Your land-to-asset ratio is a lot higher, and that’s really what drives the price up.”

This means that it might be better to own a small slice of a highly valuable piece of land, rather than a large slide of land that has a much lower value.

The current market condition

In addition, it’s also important to consider the market conditions and the current trend when choosing an investment property.

According to CoreLogic, the gap between houses and apartments is currently very high, where Capital city houses were 37.9 per cent, or $240,500, more expensive than units.

Units are obviously more affordable, and soaring housing prices mean that more consumers are choosing units rather than houses. As a result, city centre apartment prices have risen 12.6% in the last year, the highest annual growth rate in 11 years.

Apartments will continue to be a good investment because supply and demand are in alignment. Properties near the CBD or with good public transportation and easy access to shops, schools, and amenities are frequently in higher demand.

Furthermore, with the international border reopening after nearly two years, the apartment property market is expected to grow significantly in the coming months.

Why does an Apartment increase in value?

Capital growth vs cash flow

When deciding on a property investment strategy, you should first consider whether you want capital growth or cash flow.

A capital growth strategy entails purchasing an investment property that is expected to increase in value over time.

A cash flow strategy, on the other hand, entails purchasing a property that will provide a good rental yield and the ability to immediately draw a direct income

This is also the main difference in deciding which types of property to invest in. It would be reasonable to assume that apartments won’t see the same level of capital appreciation as houses, although, as previously mentioned, you are partially compensated by a higher rental income.

As a result, when comparing apartments and houses, both may have similar long-term investment returns, implying that apartments do appreciate in value.

Accelerating Appreciation In Apartments

Market comparable is how you determine the value of a property based on the selling price of a similar property with the same characteristics. This is the method by which nearly all houses are priced.

However, apartment values are determined by the profitability of rental income (your total rental income minus expenses). You can increase your net earnings by raising your rent, lowering your expenses, or doing both. By performing these 2 actions, you have increased your annual income, and secondly, you have forced the property value to increase. This is called forced appreciation.

This is the holy grail of real estate. You can increase the rent charged to tenants by upgrading different amenities, appliances, structural integrity, and overall aesthetics when you own an apartment. When rents are raised, the rental income has a direct impact on the building’s profitability, and the property value rises.

Forced appreciation in apartment complexes can be even more powerful than natural economic equity in houses overtimes.

Difference Between Investing in House and Apartment

Pros of investing in a House

1. Higher capital growth

Due to rising land values, houses typically offer greater and faster capital growth than apartments. As a result, investing in assets that provide the most long-term capital growth will help you pile up significant wealth.

2. Opportunities to renovate and subdivide

As the sole owner of the house, you can do any renovations you want to improve the house itself and increase its value. And in the case that you want to subdivide your land, you are free to do so without needing to request permission from the body corporate.

Cons of investing in a House

1. Price

It’s no doubt that houses are often more expensive than most apartments in the same area. Particularly in big cities like Sydney and Melbourne, this gap has grown tremendously over the recent year. So if you are looking to build up the diversity in your investment portfolio, buying a house might not be an optimal option.

2. Lower rental yield

A house will not be the best option if you need rental income because it offers lower rental yields than units. This is because, at the same price, you can afford a centrally located apartment but only a house in an outer suburb. And better location means more demand.

3. Maintenance costs and upkeep

A house with land is more difficult to maintain because you’ll be constantly mowing the lawn and caring for the garden, which can become quite costly over time.

Pros of investing in an Apartment

1. Affordable options

Apartments usually offer an affordable entry point for investors. Instead of buying a house at $1M, you can invest in 2 different apartments at $500k each. You have more flexibility if you have multiple assets. Concentrating a large portion of your wealth in one asset creates a lot of concentration risk, which may not be a good idea.

2. Supply and demand

Over the past 25 years, the number of occupied apartments in Australia has increased by 78%, according to the most recent census. A trend is more prevalent in urban areas within Australia’s major capital cities.

And while apartments are often closer to the urban centre and offer facilities, they could not afford in a house. And more retail demand means higher rental yields.

3. Maintenance costs and upkeep

Apartments are much easier and less expensive to maintain than houses. Garden areas are usually common areas that the body corporate maintains. Even though you will have to pay body corporate fees, you will save a significant amount of money and time as an investor.

Cons of investing in an Apartment

1. Lower land value

Again, apartments might offer lower capital growth due to a lower proportion of associated land. However, this is influenced by other factors such as location, market trends, and the condition of the property.

2. Lack of control

Because most apartments and units are part of a strata title, any changes or renovations must be approved by the body corporate. This lack of control can limit your ability to maximise the value and use of your property.

3. Future developments

If you own an existing apartment or unit in an oversupplied area, you may experience lower rental yield, renter demand, and capital growth.

Tips for Choosing a Property That Will Appreciate in Value

Location

The first and foremost tip will be choosing an apartment with a good location. These are some factors that will decide whether your new investment choices will attract tenants:

Proximity to business hubs
Popular cafes, restaurants and shops nearby
Close to public transport
Close to school catchments
Safety of the suburb

Property aspect

Property experts always recommend that buyers should look for an apartment with plenty of natural light, views and practicality. North or northeast facing properties are considered the most desirable because they get the most direct sunlight throughout the day. East-facing homes might also enjoy lovely sunrises and full morning sun.

Property level

To decide which levels to go with, you should consider looking back at your target tenants. Young professionals may love a view from up high, so the 5th to 6th floor might be the best option. However, if you want to target young families with kids or pets, apartments with good access and safe on the first three floors will be in higher demand.

Parking adds value

Another way to increase resale value is to buy an apartment with parking. According to Domain research, parking can add up to $300,000 to the value of an apartment in high-value inner-city locations.

Builder quality

The quality of the construction is also something that you should carefully consider. Before buying an apartment, you need to do some research to compare the development to others on the market.

Conclusion

Compounding capital growth is a powerful investment attribute and the simplest and easiest way to build wealth. Therefore, you should always look for an asset that comes with longer-term capital growth.

However, while focusing purely on capital growth, you might be missing out on an opportunity to achieve similar investment returns with a similar purchase price. And at the end of the day, the quality of that property will determine your investment returns.

If you need more advice, contact 02 9099 3412 or check out Our News for more information on the property market.

Apartment Buyers Checklist

Lara Osborn on February 15, 2022

Today’s changing lifestyles are a factor in what potential buyers and investors are after. The ideal property was a stand-alone house on a quarter acreage from the start of time. Still, the never-ending price wars have made it much harder to purchase the right property, and it isn’t very encouraging for first home buyers to build a property portfolio.

Most buyers don’t understand that buying an apartment can make a fantastic alternative to first home buyers or even an investment, with low maintenance fees and lower upfront costs to purchase an apartment than a house.

If you’re ready to live the apartment lifestyle, then it is time to go over the official apartment checklist. Lucky for you, we’ve created one so you don’t have to with everything you should consider (even some you may not have thought of) before choosing one!

Financial situation (You)

The most crucial step is being aware of your financial situation and personal circumstances.

Make sure you ask yourself these questions:

How much do I have saved in my bank account?
How much can I afford to spend on an apartment?
How much deposit do I need?
What is my borrowing power?
Do I have extra savings for annual owners corporation fees like a maintenance fund?
What are the annual fees like?

Speaking to a bank or broker can make this a lot easier for you as they can provide the proper guidance on answering these questions and knowing how much you can borrow with your income.

Internal

Before making any final decisions on the apartment itself, there are many considerations to make.

What is the internal storage space like?

Think about storage and where you might place all of your things. How much can you put in the linen cupboard? In the wardrobe? What about laundry space? If your belongings don’t fit in the apartment, maybe the apartment isn’t a right fit for you.

What is the car parking situation?

If you have a car or are thinking about buying one, parking is something to think about. Some apartment complexes have a private car park, whether at ground level or underground, depending on its size. Another thing to look out for is whether or not there is designated parking. Is there a car parking space allocated to you, or is it first-in, first-served? Security and convenience play a big part in choosing an apartment that is right for you. Believe it or not, the parking situations of apartment complexes are a significant factor in this area.

What is the noise situation like at different times of the day?

During your building inspection, odours, light and air levels can be major red flags, but noise is the one to look out for the most. Are the noise levels acceptable for you at all times of the day?

Think about all areas of the building, from your neighbours to the neighbourhood

Are there young children living nearby?
Is the apartment building on a busy street?
Do any neighbours play an instrument they like to practice loudly?

This might take several visits to find out at differing times of the day, but it is a great idea to gauge whether you will be able to live comfortably with the noise levels.

What is the waste disposal situation?

You may think, “surely there isn’t that much thought that needs to go into the waste disposal situation?” But there is, and it is often ignored. Feel free to ask questions about it like is there a communal rubbish area? Is there a garbage shoot on each level, or do I need to take it down myself? Who is responsible for ensuring all the bins are put out for collection, emptied and kept clean?

Ask yourself, does the apartment have a pleasant feel and suitable layout?

The layout of the apartment needs to be practical enough for your lifestyle. Is it spacious enough for you, or do the shape and layout create wasted space? Is it north-facing, and how important is this for you? After all, this will be where you spend the majority of your time, so ensuring it is a comfortable space to live in is crucial when choosing the suitable apartment for you.

What are the security features of the apartment and the complex?

As mentioned before, the security features are vital considerations that you should be aware of when you buy an apartment. Ask your real estate agent or property consultant about what precautions are being made to ensure the safety of the residents in the building. Where are the security cameras, and how many are there? Does the property have working sprinklers and smoke alarms installed? Is there an intercom system upon entry? Is the neighbourhood safe?

Am I happy with the inclusions, appliances and finishes?

When buying an apartment, make sure you’re aware of any inclusions and appliances. Is there a pool or a gym? What do you need to buy yourself? Does each apartment include kitchen appliances? What is the aircon situation like? Are there any features that are deal breakers for you? For example, is it absolutely necessary that you have a built-in-robe? Are the finishes to your liking – look at the flooring, the benches etc.?

Is there a balcony or deck?

Ask yourself whether this is a requirement for you and consider your safety surrounding having one. Firstly, is it a private balcony/deck? Is it easy to get to externally, making it a safety concern? What is the view like?

External (What they have to offer)

Location is a crucial factor in comparing apartment buildings for your own enjoyment, capital growth etc., and there are multiple components to consider in this process.

What are the nearby facilities and amenities?

Is the apartment complex within close proximity to public transport options? Consider the places you visit daily and whether they are conveniently placed nearby or how far you would need to travel to get there. What is within walking distance? Are there any nearby facilities like the shops, or the gym? How far would I need to travel to get to work? Are there any hospitals or health care facilities within close proximity? Think about public places like schools, restaurants and bars and how they might impact the safety of the area and the noise pollution they may generate.

What is the location like?

Look at the surroundings of the apartment block, as these can heavily impact your final decision.

Are there other apartments, houses, shops, businesses surrounding the complex?
Is it on a busy road?
Is it located in a safe neighbourhood?
What is the lifestyle of the area like?
Is there any nightlife in the area?

What are the neighbours like?

Think internally and externally. What is the neighbourhood situation like? Are people friendly, and is it safe? Also, you really don’t want to be stuck in a building with people you don’t get along with, or who might cause constant trouble for you, so it is important to be aware of certain things about them. What are they like? Are they the same age? What is the community like? Do they have similar interests to you? Careful consideration of these questions makes for a more pleasant and easy apartment living experience.

Research whether the sale price compares well in today’s market (property value)

Once you have considered the quality, inclusions and finishes, conduct your own research on other apartments in the area and the market and check to see if your apartment is reasonably priced in comparison. Is it reasonable, or should you look at others?

What are the vacancy rates and short stay accommodation?

Both short stay accommodation and vacancy rates can significantly impact the environment and community of the complex. Often noise and security can be a big concern, so it is important to be aware of these rates of the building as a buyer.

Are the apartments neat & tidy? Are they well looked after?

Look out for any repairs and complaints that are made as well as how often they occur. Your apartment complex should be well taken care of by and speed at which building management responds to such concerns and issues can avoid future problems for you.

Are there any future developments in the area?

Talk with your real estate agent or property consultant about any plans for future development in the area, as this can negatively affect your lifestyle and comfort.

Ask them:

If any developments are planned in the vicinity of the unit, could they affect value? Could they change the character of the area?
Could traffic be impacted?
Could this development affect capital growth?
Are there any upgrades planned for the building? Who is responsible for the upgrades?

Development (Your Apartment Building)

Finally, regarding the building itself, there are some beneficial things to include in your apartment checklist when finalising your decision.

Are you happy with the building’s structural integrity?

When you visit the apartment, it is essential to visually inspect the place for anything that could impact its structural soundness, like mould and cracks. However, to be safe, it is beneficial to obtain a report of a building inspection and a pest inspection.

Is the apartment building pet friendly?

If you have any pets or are thinking about owning one, check if this is allowed. There can be many rules and regulations, so be sure also to see what these are and if you align with them.

Ask about strata fees and other costs

Strata costs are dependent on the size of the building as well as any facilities they include. They cover the costs of maintenance and repairs, so when looking at an apartment, it is important to be aware of these fees and any other expenses required. Check to see if they are reasonable with your financial situation as well as in comparison to the purchase price, market and condition of the complex as a whole.

Read the strata by-laws

Strata by-laws are any rules that tenants, owners and visitors must follow. They cover the behaviours and everyday property use like smoking regulation, building pets, parking, etc., so each strata scheme will have its own by-laws.

Buying an apartment – It’s time!

When buying an apartment, there are certain things that you should be aware of that can have significant impacts on your safety, lifestyle and final decisions.

At Liviti, we here are to make this process as easy and seamless as possible for you. Our goal is to find the right property for you so you can be living in your dream apartment ASAP.

For more information, give us a call at 02 9099 3412 or visit our website to get started today.