Buying A Studio As An Investment
When looking at investment property, and apartments in particular, generally you’ll have an option of buying a studio or one, two or three bedrooms. Deciding which type of property is better as an investment will depend upon your budget, your goals and your expectations. Studio apartments can be a fantastic option when you’re first starting out, and there are some factors you need to know before deciding on your final choice.
A Step Onto The Property Ladder
Because of their affordability, studios have always been a great way for first time investors to get their foot on the property ladder. Studios are generally considered to be any property that consists of one room, with the bedroom, kitchen and living room all in one space. Sometimes it can have a nook or separate area for the bedroom, but it most cases it will not be separated by a solid or fixed wall. Even in the major capital cities you can still find exceptionally well priced brand new and off the plan studio apartments – as a rough guide, prices can vary between $300,000 and $500,000 depending on the location. Even with a modest budget it is possible to find properties that will give you the returns you want.
Location Is Critical
While the location of all types of property is a huge factor in choosing a suitable investment, for studios it is a critical component. This is because of the demographic of the potential tenants you will want to attract. Generally speaking, tenants who look at studio properties fall into a range of either students, young professionals or people who need a convenient pad close to the city. This means that when you decide on a studio as an investment property, only look for those in popular inner city locations or up and coming inner suburbs, close to transport links, entertainment and shopping facilities.
Go For Design, Features And On Site Facilities
One of the important factors to have to think about when looking at a studio apartment as an investment property is choosing one that will stand out from the rest in the development. Although your options for room sizes will be relatively limited, look for design features and facilities that will make you studio the one renters pick over all the others. Look for things like:
- Gourmet kitchens with the latest gadgets
- High quality fixtures and fittings
- Good storage options, including cupboards and storage cages
- High speed internet access, plenty of power points
- Balconies or terraces that can serve as entertainment areas
- Onsite amenities such as swimming pools or spas, roof top bbqs
Finally, don’t forget one of the golden rules of property: always make sure the investment property you purchase has plenty of natural light and that it is either facing North or North East to be flooded with light during the day, or has well designed windows to catch the sun as it moves.