3 reasons to invest in apartments
Thu November 10, 2016
One of the biggest changes that we're seeing in the Sydney property market at the moment is a huge increase in the number of apartments being built. This has come about through substantial rezoning by local councils, which has been undertaken in an effort to fit more dwellings into key areas of the city. With more and more people moving to the region, this will prove vital to the future, especially in tandem with new infrastructural developments that are set to connect suburbs more efficiently than ever before.
With all of this activity, it's no surprise that apartments are catching the eye of investors throughout Sydney, offering a range of benefits that you normally don't get with standalone houses. In this article, we'll take a closer look at why apartments are well worth considering when looking to buy an investment property.
The home will be more easily kept in good condition - ensuring consistent value when you decide to eventually sell.
1. Less maintenance
No lawns to mow, no gardens to trim and no exteriors to paint and maintain - apartments are a dream for hands-off landlords. With most buildings typically having a dedicated strata management supervisor, there's far less of a need for tenants to get in touch with landlords whenever something goes wrong. Similarly, the lack of ongoing exterior building work means that apartments are usually cheaper for all parties.
Not only will this reduce costs for investors, but can also mean that the home will be more easily kept in good condition - ensuring consistent value when you decide to eventually sell.
2. Lower purchase price
As well as lower maintenance costs, apartments are typically cheaper to buy too. This can be put down to a number of reasons, but the most obvious is the small amount of land that they physically take up. This is great for landlords who will be renting a property out, as having a backyard doesn't always translate to a noticeable increase in the amount of rent you can expect to receive.
A lower cost may mean you're able to buy an apartment in an area that would otherwise be outside your price bracket, or even purchase more than one and generate a larger income stream to pay off any mortgages quicker.
Apartments typically offer you a different range of suburbs to choose from than you'd get with a house.
3. Better locations
Apartments typically offer you a different range of suburbs to choose from than you'd get with a house. For example, if you're looking to buy in the CBD, apartments are often the only option. There are always people looking to live in that area though, so you can expect a steady flow of rent and plenty of interested potential tenants.
The rezoning also provides an opportunity to buy closer to new train stations and public transport routes. In time, this will add value to the area, and we're already seeing savvy investors looking very closely at these areas before the prices start to climb. By getting in early, you can expect a greater return on investment further down the line.
Ultimately, investing in any form of property is a great way to diversify your portfolio, but apartments certainly are an interesting opportunity in Sydney at the moment. You'll have to get in quick though, because there's only so much stock and plenty of keen buyers out there! If you're interested in finding out out more or talking to an agent, get in touch with Laing+Simmons today.