Investing in an Apartment

Should I add an apartment investment property to my portfolio?

In Australia today, apartments are becoming an increasingly popular housing choice. Census data reveals that more Australians are choosing modern apartment living than ever before, as people prioritise access to jobs and local amenities over the traditional big backyard.

At the same time, architects are pushing the envelope in apartment design, creating light, bright, liveable spaces that foster a sense of community through shared resort-style facilities that form an extension to residents’ own homes.

It’s no longer just couples and professionals choosing apartment living. More families are opting for the convenience and relative affordability of apartments. Leading developers are creating apartment buildings and floorplan layouts with this new demographic in mind.

Investing in an apartment typically offers a more affordable entry point into a desirable suburb, are easier to rent and can offer stronger yields than a standalone house. Experienced investors would include at least 1 apartment in a diversified portfolio.

What are the advantages of investing in an apartment?

Historically, apartment investing was not considered a particularly wise choice as it was believed that sizable land was where a property’s value lay. However, with an ever expanding urban population, land is becoming scarce in the inner city and access to amenities and infrastructure is becoming more highly sought after. Some of the advantages of investing in an apartment are:

Affordability – As apartments are typically a lower cost investment option, they can be a good starting point for first time investors as well as suitable for experienced investors who are looking to diversify their portfolio without taking on too much.
Longevity – With more Australians choosing to live in apartments, it’s likely investors will see continual renter demand, higher rental income and greater potential for profit when sold.
Property management – With apartment investing you will likely benefit from shared building repair costs, insurance and the potential to have less of a hands-on investment.
Broad buyer potential – When it comes to selling your apartment investment property, you will likely find you have a wide range of interested buyers. From first time buyers to downsizers as well as other investors. Having higher interest and competition in your property will likely result in a higher selling price

Performance

Typically higher rental yields, and capital growth strengthening with increasing demand.

Growth Drivers

Proximity to CBD, employment, transport, retail, restaurants. Quality of views and residents’ facilities.

Location

Within 10km of a highly built-up area, CBD or major employment hub.

Tenants

Professionals, students, young couples, downsizers and families.

How can you be confident you’re investing in the right apartment?

Many Australians buy a new or off the plan apartment because of government incentives on offer, potential tax advantages, or the cutting-edge design and resort-style facilities that will appeal to a high-calibre tenant. But all apartments aren’t created equal. How can you be sure of the delivery and quality of the end product?

We share the same concerns. That’s why we thoroughly review every property we recommend, and only partner with industry-leading developers.

Quality

Developers who share our passion for delivering apartments of an exceptional quality.
Legacy

A proven track record of delivering quality apartments in the right locations.
Value

An affordable price point that represents value for investors.

My second purchase was a 2-bedroom apartment in South Brisbane. I wasn’t expecting to make this purchase, but when I learned about the opportunity, it was a very attractive option given the timing and completion, and the growth potential of the area.

— Dickson Wong, Electrical Engineer

How do we select an outstanding apartment?

Our brand reputation means we can be as selective as we want when it comes to choosing which developers we partner with and what apartments we recommend to our investors. In reviewing a development, we consider many factors including location, convenience, comparable pricing, size, view lines, floorplans and contract terms. And of course, the developer: what’s their track record, which builder are they using, and what’s their strategy to ensure the development gets off the ground successfully?

Typically, we reject the majority of apartment developments on the market. That’s how you can be confident that when we recommend an apartment for your portfolio, it’s of a high standard.

See how our customers are building their portfolios with us.

Candice Lowe

Occupation

Registered Surveyor

Objective

Set her family up for the future

Portfolio

2 properties

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Julie Liu

Occupation

Client Care Co-ordinator, Ironfish

Objective

Fund an early retirement

Portfolio

4 properties

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