There are some important tips to keep in mind when considering an apartment as an investment.
The Gold Coast’s investment property market has been a shining light amongst other underperforming major cities, according to Gold Coast based investment specialists, Property on Demand. “The Gold Coast has all the fundamentals we look for in a strong investment region”, says property investment specialist, Tim O’Shea. “Apartments have long been the staple property of choice for investors, and along with that comes the peace of mind that investments can be closely managed despite many owners living interstate or overseas.”
There are, however, some important tips to keep in mind when considering an apartment as an investment, the most significant being body corporate. “This would be the number one area to pay careful attention to when buying an apartment,” said Mr Oshea. Check the disclosure statement in the contract carefully, taking note of the body corporate’s sinking fund. “There should be a healthy amount of cash sitting in the sinking fund to stay on top of building upkeep, general repairs and forecast large maintenance items like repainting the building,” he said. Another area to consider is parking. “An apartment with one, or if you are lucky enough, car spaces will draw a premium. Mr Oshea warns that apartment buildings on the Gold Coast often have restrictions on the type of tenants that can occupy the property. “Some buildings are “residents only”, so no rentals at all. Others will not permit holiday letting or Airbnb type arrangements – long term tenants only. “Being a tourist destination, many Gold Coast apartments derive some of their value from the aspect or views from balconies or living areas. If you are buying with views in mind, be sure to view the apartment at different times of day and night. “The other important consideration is the potential for redevelopment that might impede or block your views”
Brendan Laxale (pictured) lives in Constitution Hill, Sydney, and recently bought an apartment off-the-plan at Palm Beach development, The Jefferson. The 25 year old said he had always holidayed on the Gold Coast so when it came time to buy an investment property, it made sense for him to look there. “The Jefferson development (pictured) really stood out for me,” the electrician said. “I couldn’t go past the look and location. Being in Palm Beach, it’s away from the middle of the city, but so close to everything. “I love the beach and the surf so having a solid investment on the Gold Coast gives me the opportunity to move there later”. He said he believed there was plenty of value in the Gold Coast property market. “I’ve bought a brand new, beachside apartment for around $500,000 – there is nothing that compares in price or lifestyle to that in Sydney,” he said. “To find something in my budget, I would have to buy somewhere that I wouldn’t want to live myself”.