If you’re dreaming of investing in a new property, deciding on whether to buy a house, a townhouse, or an apartment is an important consideration in making property decisions. An apartment unit is commonly the least expensive property class to invest in and is an ideal starting point for new home buyers. An apartment, just like all other real estate properties, can appreciate in value depending on its location, the overall appeal of the apartment, and the community where it resides.
Here are some investment insights for apartment buyers:
Location is the key.
The main advantage of an apartment unit over a house and lot is location. Buyers invest in an apartment because of its location, which offers a more convenient lifestyle. Apartments that are in walking distance to major transportation hubs in the city or business district, such as buses and trains are the best, but not so close that they head back into a busy main road. Walking distance to lifestyle services, like parks, playgrounds, schools, shopping malls, cafes, and restaurants can create an easy and enjoyable lifestyle for people who value this convenience. Remember that you will need to travel during rush hour, so travel time to and from your apartment should be an important consideration.
Financing your apartment.
How are you going to pay for your apartment? Are you going to pay in cash or borrow money for it? Buying in cash can help you get a much better price because most developers offer significant discounts as a buyer incentive. But make sure that you save enough cash to fund your other expenses in cases of emergency. Unlike paper assets, an apartment property is not easy to sell and requires time to liquidate. If you’re considering to loan money from the bank, make sure that you have stable cash flow to pay for the monthly amortization. For those who intend to buy an apartment property for the purpose of renting it out for passive income, compute the amortization amount versus the potential rental income. Make sure that it can be a self-liquidating asset investment and not a liability.
Consider the total costs.
You need to consider not only about the monthly amortization, but also to other expenses associated with owning an apartment. As a real estate property owner, you will also need to pay for annual real property taxes and insurance. In addition to the monthly or annual costs, there may be a one-time payment that must also be considered when buying a real estate property. Most contracts to sell will normally state that you will have to shoulder the costs of the transfer tax and the registration of the apartment property in your name. This should amount to no more than an additional 4% of your purchase price.
If you’re looking for your dream home or apartment unit, residential brokers Victoria, can help you find the property that best suits your lifestyle.
Since 1883, National Brokers Network has been one of the most trusted property experts in Australia. With hundreds of offices around the world, National Brokers Network is committed to providing you with exceptional service across the globe. Contact us today at 03 9226 9222 for a confidential chat about how we can help you with your real estate requirements.