Buying a Unit – Bank Valuations

Hi,

I’m looking at a 2 BR unit in Newport Northern Beaches.

I have bought houses before but not units for an investment property. Comparing to other similar properties within the area, the rental return would be $450/week – and it provides me with a choice for me to live in it myself if I choose to, as it is a good area. I am aiming to purchase it at $450k.

My questions are:

How can you estimate what a bank evaluation will be for a unit? Is there a guideline I can follow except for the “market” valuation (i.e. what has been sold within the area?) I am not interested in the property unless the asking price meets bank valuation.

Secondly, if the unit is an older complex (late 60’s), how is it kept “up to date” with external features? e.g red brick building whereas houses and the other apartments (not many) in the street are very modern. Sinking fund stands at $25k and only 10 units in the block. It is the only “outdated” complex in the street -mainly houses otherwise.

Obviously I am a little wary with my lack of knowledge of purchasing a unit. I am aware of how it works when purchasing a house as the land speaks for itself. I have looked at many other units for sale within the area and investigated the fees (strata/body corp etc) but this still does not reflect a bank valuation in current times.

Any feedback will be greatly appreciated.