Choosing the right development in which to invest your money can be dependant upon a number of personal factors including the budget and your long-term strategic plan. As a rule, most people investing in property will be looking for a reasonably priced opportunity that is in a great location and will attract people looking to rent. In this way they can assure that they will maximise their return on their investment when they wish to sell, as well as guarantee a healthy rental income. When it comes to apartments and off the plan developments, not all properties are created equally.
1. Inner City Developments
According to recent property surveys, including the Australian Property Monitors Rental Report, more and more tenants want to move into brand new apartments close in to a capital city such as Sydney, Melbourne or Brisbane. Interestingly the trend seems to be more prevalent in younger generations, and particularly Generation Y, either as single tenants or sharing with a partner or a group of friends. Younger professionals want to be in the heart of the action, close to where they work and play. In investment terms, finding an off the plan development that is located in one of the up and coming inner city suburbs can means ensuring your property is always sort after and will attract premium rental prices.
2. Location Is King
Apart from wanting to live in inner city developments, tenants and people looking to buy real estate will also gravitate towards properties that are close to essential facilities such as transport, shopping, education and entertainment such as restaurants and pubs. When land value increases thanks to higher demand as well as access to better facilities then the price of property increases with it. This means that finding a development – and in particular an off the plan property – in an up and coming area (one in which there is increased levels of building activity) in an inner city location can be one of the best investments you can get.
3. Car Parking: Pros & Cons
Once upon a time car parking was seen as one of those essential commodities that people living and working in the cities will pay through the nose for. For today’s investor car parking is less of an “essential” feature for a property: many new apartments are being sold without having car spaces, and they are generally cheaper than those with parking. This means that not only will the purchase price be less for the investor, but also they are more likely to charge reasonable rents for the apartment. This can mean that the apartment will rent quickly, especially in areas where the local transport options are efficient.
If you are looking at investing in property and considering an off the plan property, then make sure you find out whether car parking is included in the total price before you sign the contract. Additionally, if you need assistance deciding between a cheaper property without parking or a more expensive apartment that includes a car spot, it is a good idea to talk to a property investment expert such as Ironfish to go through your options and your investment strategy.
Again, like location, when you’re investing in property it’s good to know that facilities such as gyms, outdoor gardens, swimming pools and saunas can be very attractive to young professionals, to small families or even the older “empty nest” demographic. This increased demand will lead to higher rental income and an increased value at sales time. If you are considering buying an off the plan property remember to ask about the anticipated strata fees for ongoing maintenance and upkeep of the facilities in the building. This will enable you to incorporate such costs in your overall financial plan for your investment.