PHOTO: Apartment blocks in low density suburbs tend to retain their value and attract buyers when it is time to sell
New homeowners looking to buy a cheap apartment during the pandemic are being warned to look out for key factors that will help them to cash in later.
Economist Andrew Wilson says it’s important not just to focus on price and that inner city regions are often weak contenders when it comes to picking up a bargain, according to realestate.com.au.
He said apartments were ‘investor stock’ and urged buyers to consider a range of factors when they look for a new flat.
Homeowners should consider low-density regions and weigh up the benefits of older apartments and smaller blocks.
Due to the restriction on international travel amid the ongoing coronavirus crisis, ‘investor rentals’ aimed at students, travellers and hospitality workers are coming on the market at bargain prices
Homeowners are urged to consider the location, conduct due diligence by checking for issues such as combustible cladding and weigh up the benefits of older apartments and smaller blocks. (Pictured: apartment with combustible cladding from NSW register)
1) What to consider during property selection
Buyer’s agent Michelle May said it is important to go for a property that offers quality over size and it fits in with a ‘five-year life plan’.
She said: ‘You’re better off going for a good-sized one-bedder than a tiny two-bedder but I always recommend to my clients to buy with the future in mind.
‘Many young couples who buy apartments need to make sure they have that extra space for when they decide to start a family. A second bedroom is going to make a world of difference.’
She also said buyers must also consider the location and aspects of the home which will never change, unlike fittings and decorative features which can always be updated.
The ideal aspects are north or east facing because they receive the most direct sunlight during the day, especially in Winter when the sun is at its lowest.
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