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How To Buy An Investment Property - Articles

Questions to ask when buying an apartment

Date: 12/01/2014

Questions to ask when buying an apartment

questions to ask when buying an apartment

So, you’ve decided to invest in property. Congratulations! This could be the first step on your way toward earning extra income and increasing your financial security.

On the other hand, you may be on your way to a stretched bank account and added stress.

The difference will be making the right decision about when and where to invest. Chances are you are targeting a rental income strategy and have focused your investment venture on finding the right unit or apartment.

If this is the case, to ensure you make the right decision, here are three questions to ask when buying an apartment…

How has the local market been performing?

Whether you are looking to buy off the plan or an established unit, it is of the utmost importance to get a comprehensive view of the local area.

Looking into recent sales in the area and making future projections using meticulous calculations can help paint a clearer picture of the apartment or unit’s potential for delivering high yields.

Am I getting accurate advice?

Developers may give you a skewed version of the potential value of your prospective purchase and opinions originating from the same circle of people may not reveal the whole story.

It is best to carry out your own independent research by speaking with local real estate agents and valuation experts.

The bottom line is, do not let yourself get sold by an overzealous developer – it happens more often than you would think!

Who will want to live here?

Demographic trends can be key to your investment strategy. So before buying an apartment, by getting to know your target market, you can develop a marketing plan to appeal to potential tenants and create demand for your unit or apartment.

On the other hand, if your dwelling is best suited to a demographic that does not typically live in your area, you may wish to pass on it for a rental investment property – even if the local market is performing well.
Profile photo of Steve McKnight

By Steve McKnight

Steve McKnight, the founder of PropertyInvesting.com, is a respected property investing authority as well as Australia's #1 best-selling business author.

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