What to Look for When Investing in an Apartment
Apartments are one of the high performing property investment markets in Auckland but are also one of the higher risk types of property investment. The bottom line, is that you need to be mindful of investment values and possible risks.
As with any property investment, you need to thoroughly evaluate your prospective purchases. You also need to acquire all the relevant current market information to make a good investment decision.
Buying an Apartment Must-Dos
Best practice for apartment buyers is to be very thorough about gathering information.
These are the absolutely essential information requirements:
- Apartment size: There are some fabulous, brand-new modern apartments on the market which are quite large. These apartments are currently very hot property on the market and are considered to be excellent investment choices. Smaller older apartments can be impossible to finance so check first!
- Apartment block facilities: Like the big apartments, the best apartment blocks have a truly dazzling range of facilities, including gyms, downstairs shopping, swimming pools, health spas, and many other high-value amenities
- Rental income: Rental incomes may differ significantly, even in the same local market. Research rental history and market trends to accurately evaluate rental income performance
- Capital returns and sale prices: It’s a good idea to evaluate overall prices for the type of apartment you’re buying. Compare your proposed purchase price with current sale prices in the area and look at historical prices and whether there are any plans in the area for further blocks.
- Body corporate fees: Body corporate fees may or may not be a major issue for investment purposes. That said; they can also require a significant cash outlay, particularly over time. In some cases, body corporate fees can be quite high, so include these fees in your calculations
iLender Can Help with Your Apartment Investment
iLender are leading mortgage brokers in New Zealand. If you’d like some help with buying an apartment, including finding a home loan, investment mortgage, or equity loan, we can help. We can also provide expert advice and guidance regarding property investment. To speak to one of our experts about your needs, call us on 0800 536 337.
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