If you are considering buying an investment property you can't look past slipping an Inner City apartment into your portfolio. With the Mining Resource sector BOOMING and international companies coming into Perth, relocation companies are always looking for inner city apartments to service clients from companies such as Chevron, Woodside etc.
Known as "Corporate Tenants", chances are you will only secure them is you have a furnished apartment as that is the main requirement for such a tenant. Yes it costs money to furnish an apartment. You can expect to pay anywhere from $10,000 - $20,000 depending on the size of apartment and quality of the furniture. Don't fear !! you will see a return in your investment as furnished apartments are getting between $100 - $200 a week extra in rent. Add to that the ability to depreciate the furnishings against your investment makes an inner city furnished apartment a strong consideration when buying an investment property.
What to look for in an apartment.
When purchasing an inner city apartment you should research the following:
How many square metres is the apartment? - As most apartments are sold "Off The Plan" you cant just walk through and inspect your potential purchase. Instead you rely on the information provided by your real estate agent and the ability to read off the plan. Open plan living apartments and spacious balconies should be on you wish list when researching.
How many parking bays does the apartment come with? - Parking in the CBD is considered a luxury. Most 1 & 2 Bedroom apartments come with 1 secured car bay and in some instances 2 Bedroom apartments come with 2 bays. If you buy an apartment with 2 bays it will not only help secure a tenant but with add value to the apartment when reselling.
What are the common facilities like? - Some will say you should avoid buying apartments with extensive communal areas such as theatre room, pool & gym as included with those facilities are usually care taker fees and maintenance issues which contribute to high strata fees. However, most investors who buy inner city apartments look for extensive communal areas such as pool/BBQ areas, spa, gym and even in more modern apartments, conference rooms for business meetings. Communal areas overall are seen as a advantage when leasing properties out as it offer a lifestyle to the prospective tenant without the tenant having to commit to gym memberships etc.
What are the finishes like? - A question you MUST ask the agent selling the project as you need to have a detailed understanding on what you are actually buying especially if your buying "Off The Plan". Most inner city apartments will offer stone bench tops in the kitchen, good quality carpets in the bedrooms, hallways and possible living areas with tiles,carpet or timber flooring throughout the rest of the apartment. The good news is developers in the Perth Inner City area are currently producing great products in the way of apartment living.
So....... my advice to those looking to invest in the Perth property market is that you MUST consider an inner city apartment. This is not only for the opportunity to secure EXCELLENT rental returns but to also take advantage of the OPPORTUNITY for future GROWTH.
For more information on purchasing an inner city apartment or buying "Off The Plan" contact Chris Tonich, Director of Burgess Rawson Residential at firstname.lastname@example.org .
Introducing Chris Tonich
- Chris Tonich Project Marketing
- Chris has a wide range of experience covering a number of real estate disciplines. Chris has substantial experience in a variety of Residential Real Estate areas from the sale of Subdivisions to Development Sites and Apartment Projects. His vast level of experience allows an insight into multiple markets and the drivers within them. Chris has also had substantial experience in Project Sales working with award winning London Real Estate company, Keiller Collins Property, who specialised in Apartment Sales and Management and Project Marketing. During his time with this agency he represented specific International Investment Syndicates from Africa, Hong Kong, and London who developed cutting edge high rise apartments in Canary Wharf, North Greenwich, Gallions Loch and Docklands. WA’s Top Sales Team for REIWA 2007, 2008 REIWA MLS Award Winner 2008, 2009, 2010