Are Perth Apartments A Sound Investment Opportunity?

| November 2, 2012

What determines the capital growth of apartments?

Location, location, location will determine the long term capital growth of the apartment and you should carefully select the location before making a decision to buy. Find an apartment which has a scarcity factor i.e. it may be located in a quiet street within walking distance to river, the Perth CBD as well as cafes and restaurants. Take your time in buying an apartment and don’t buy on emotion. If you buy the right apartment, it can deliver high rates of capital growth which can be equal or even surpass a larger family home in the outer suburbs. With the news of Perth’s new light rail system, MAX, to be built along Fitzgerald street leading into Balga – those suburbs will enjoy growth on apartments and even townhouses that just a few months ago wouldn’t have made the ‘must-buy’ list.

Is the quality of the apartment important?

Over the past 40 years, at Limnios Property Group, we’ve noticed there has been a quiet revolution in the apartment market. Many older style apartments were very basic and constructed for investors. Today, more owner occupiers are now buying apartments so quality is now a key issue. The quality of the complex and fit out of the apartment is therefore another key issue when making a final decision. Good quality apartments in a high quality complex achieve higher re-sale prices than poorer quality apartments.
A fragment of urban apartment style

Is the size of the balcony important?

Apartment living is now being driven by lifestyle factors as is the rest of the property market. If the apartment has a pleasing outlook, such as overlooking a park, then the size of the balcony is very important. A larger balcony with an attractive outlook can enhance the re-sale value of the property. You should also check the floor size of the apartments because you are paying by the square metre for this type of property.

When should I inspect an apartment?

If the property is located close to busy road, organize an inspection during the peak traffic period so you can determine noise levels. When you inspect the apartment make sure it has a dedicated parking space as parking is a key issue in the inner city area. Perth peak hour can be brutal so this is a great way to see whether you’ll end up frustrated driving home every day. If there is public transport nearby, or if there are plans to upgrade the transport system nearby then that’s a good sign that the area is an up and comer.

Are older apartments a good investment?

If you are buying an older apartment, check if the complex plans any upgrades such as security parking. This could enhance the future value of the property. You can also add value to older style apartments through cosmetic renovations. If you plan to purchase an older apartment for this purpose then check out the price of a similar renovated apartment in the local area which will give you an indication of the value of the property you plan to buy.

Who maintains the apartment complex?

Each owner has to pay quarterly fees to a strata management company for the upkeep of the complex. If you are buying an apartment for the first time, you should check how effective has been the past record of the strata company as well as the strata committee. The strata committee comprises the representatives of owners in the complex.

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Category: Property Market

About the Author ()

James Limnios is the CEO of Limnios Property Group and has been a City of Perth Councillor since 2009. He has worked in the real estate industry for over 20 years and is passionate about Perth inner city property and living. In 2004 he was a winner of the WA 40 under 40 awards for excellence in his field.

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