In this Quick Hits Episode Jeremy is joined by Omar Moujalli from Examine Property to discuss the "5 Critical Consideration BEFORE you buy an apartment". These considerations include:
Demographics - This is where your research should start! It is imperative that the type of property that you are considering matches the demographics of the area. The expectation and demands will be very different between white-collar "DINK" professionals without kids and that of the demands from a blue-collar family that include kids! Are 1, 2 or 3 beds in demand? Is a study required?
Matching your property the demographic demands can mean the difference between a great performing property and one that has serial vacancy's forever requiring you to reduce your rent in an effort to attract a tenant!
Supply and Demand -The greater the supply the greater your competition! Competition to attract renters and even eventually competition to try and attract a buyer. The greater the demand for your property the higher will be the rent you will be able to charge.
Understanding the demand and supply metrics of both your chosen location and possible tenants can avert possible financial heartbreak.
Proximity to Amenities (infrastructure and Jobs) -Location. Location. Location! Tenants want convenience. Tenants will pay a premium for convenience. Convenience to transportation, entertainment, jobs, lifestyle assets as well as beaches and parks. Shopping, hospitals and medical centres just to name a few. Under the 5 Essential Drivers of Property and you will understand how your proximity to amenities WILL manifest back into higher desirability and hence higher prices.
Building and layout - The quality of your building can not be overstated. Construction quality, the finishes will have a major impact as to both the desirability as well as the cost of ongoing maintenance.
And never underestimate the impact the layout of an apartment can have.
Cost and cash flow- The financial consideration is the price of the apartment and its expected cash flow. Never overpay. Never pay tomorrow's price today for an apartment. Always review the strata costs and never neglect to review the strata minutes to ensure there is NO hidden issues potentially lurking in the future. Always have a professional review these numbers so as to ensure you don’t face any nasty shocks.
For further information you can get in touch with Omar using any of the links below:
or on Linkedin at https://tinyurl.com/yyqjeeuw (https://tinyurl.com/yyqjeeuw)
At PAFO we'd love to help and can be reached at the following locations: