Top 5 tips when looking to buy an apartment
So, you want the inner city pad for the lifestyle factor and you’ve got under a million bucks to spend… apartment hunting we go!
We love apartments, but some are definitely better than others. In this article we explore some tips on what to look for when buying an A-grade apartment.
1. The Contract
Look VERY VERY carefully through the AGM minutes of the contract as this is very telling of how well the block is managed. We never commit to a property until we have gone through these pages with a fine tooth comb. Here you might find upcoming levies to be raised for works to the building, VCAT hearings, cladding issues, leaking balconies, noise complaints, and everything in between. You will get a good indication of the financial position of the block. You can also tell by the AGM minutes if owners in the block are active or not, by how many attend the meetings and how the discussions go. These discussions give you a good idea of potential works in the pipeline which is potential upcoming costs for you as a new owner in the building, so you’re going to want to be across this!
2. Smaller blocks
Generally speaking, the fewer apartments there are in a development the better. That’s because if you ever resell in a large complex there may be several similar apartments in the same building on the market at one time. This can drive down your sale price.
Smaller developments may also have lower body corporate fees, fewer members to deal with, and they’re often built with more attention to detail.
3. Check your carpark
As we’ve told you before car stackers are a no go. But you also want to make sure the apartment comes with a carpark in general. Physically inspect the car park, test drive in and out of it if you’re able to and check the contract to make sure there is a title for the same carpark you’ve been shown. While you’re in the basement and looking at the plan of subdisivion, check if there are any visitor car parks too. In apartment blocks this can be a fantastic value add proposition.
4. Consider the area.
Typically apartment blocks are in areas zoned for high density developments. It is very important to consider the surrounding area and potential for future development. Is there a large block close by that might be built on, blocking natural light to your property? Is there a planning application with council which could dramatically increase the traffic of cars in the street and general area?
5. Natural light and outdoor area
These two factors will future-proof your purchase against other apartments. Having a balcony or courtyard makes an apartment go from a B or C-grade property to A-grade. Natural light is another huge factor to consider. Ideally having a corner apartment or one on the North or West side of the block will allow natural lIght to stream through the property. Light wells and skylights do not count as good sources of natural light!
One last thing.. when we used to sell property as agents, we’d always get asked the ratio of owner occupiers versus renters in the block. This is a hard number to find, typically you’ll hear the agent say it has ‘the perfect mix’, which used to be a go to line for us too! But the truth is it’s a moving number, and one which we don’t base a purchase on. We do however, look around the block and the general maintenance and cleanliness of the property. Blocks where there are more owner occupiers tend to (but not always), be a little more well maintained.
Thanks for reading,
Tabitha