The secrets to success when investing in apartments include choosing the right apartment, ensuring that it’s in the right area and deciding which areas of your apartment (if any) to upgrade.
First things first – why are we talking about apartments in particular? There are many advantages to making an apartment or a sectional title unit your investment property. For starters, secure environments such as these are highly sought after by tenants and tend to achieve better rentals. Also, the body corporate or homeowners’ association will ensure that your property’s exterior and surroundings continue to look great. The conduct rules that tend to be in place in sectional titles will also ensure a harmonious way of life for your tenants.
When it comes to choosing your investment apartment, a two-bedroom apartment of 60 square metres or more is a great choice. An apartment of this configuration has the potential to be a great home for a couple and a child, or a home for a single executive working from home. Your apartment should have at least one dedicated parking bay, and preferably visitors’ parking as well.
The single most important criteria when it comes to real estate can, as always, be summed up in three words: “location, location, location”. Put yourself in your potential tenant’s shoes and think about what amenities you would want nearby. Properties in sought-after neighbourhoods that are close to good schools, shopping centres, gyms and arterial routes are always sought after by tenants. It’s a great idea to work with a property practitioner when considering your buy-to-let purchase, as they will be able to point you in the direction of areas where there are good returns to be made on investments.
In order to collect the highest possible rental – and to get a good return on your investment when you sell your property – you may need to carry out some strategic upgrades. The first step to being strategic is making sure that you don’t overcapitalise. The secret here is to consider what other apartments in the area are like. Making your apartment one of the best in the area is a great idea, but kitting it out with more expensive fixtures and fittings probably means that you’re spending too much and may not recoup your investment.
Applying a coat of paint to your investment property – in a neutral colour like grey or beige – will be visually appealing to would-be tenants. This makes your property come across as a blank but attractive canvas upon which they can create the life they want to live.
If there are two areas of your investment apartment that are most worth paying attention to, it’s the kitchen and the bathroom. Contrary to popular belief, these upgrades need not be expensive. Depending on how much work is needed, increasing the perceived value of your property can be as simple as painting a backsplash or replacing door knobs on slightly worn cabinet doors. In the bathrooms, new taps, a new showerhead or new toilet paper holders can make a world of difference. The important rule to remember is that you are renovating to create a blank but sophisticated canvas – you are not renovating to suit your tastes.
If you’re interested in becoming a property investor, the Seeff team is here to help. We’ll help you find the right apartment in the right area, and our rentals team will find you a great tenant and manage the property on your behalf to make your apartment investment as hassle-free as possible. Contact us today.