Apartments with internal access v external

[dmb1978]

Hello, looking to invest in my first apartment/unit and have located a very cheap unit only 3 years old in a nice environmentally friendly complex with low body corporate fees in a good area. My concern is that it has stairs and external access to the apartment with a secure carpark underneath and not accessed from the apartment internally. it has nice communal areas and is only 3 levels high. Most of the new complexes i have noticed are becoming very secure access hotel like with internal corridors. Do you think that the external style complex would slow capital growth or actually be a feature to future tenants/buyers? In this market to go to the newer more secure access apartment would cost about an extra $30000 just want to know if its necessary. Apartment is in Canberra ACT

 

[melbmeg]

No idea but...

One of the things I hate about apartments as an investment is that if the body corp lets the communal areas go to **** your investment loses value. Of course, you don't need internal corridors for this to happen, but it helps. There's something about internal areas with filthy floors, scuffed walls and blown light bulbs that feels really sordid.

So, assuming the garden was well maintained, I might take external access as a plus.

 

[dmb1978]

Great thanks, never thought of it like that, I guess BC's are more likely to maintain areas to a higher degree if they are on constant display to the public. I was just concerned that this style of apartment was on the way out and the secure complexes favoured.

 

[handyandy]

Hello, looking to invest in my first apartment/unit and have located a very cheap unit only 3 years old in a nice environmentally friendly complex with low body corporate fees in a good area. My concern is that it has stairs and external access to the apartment with a secure carpark underneath and not accessed from the apartment internally. it has nice communal areas and is only 3 levels high. Most of the new complexes i have noticed are becoming very secure access hotel like with internal corridors. Do you think that the external style complex would slow capital growth or actually be a feature to future tenants/buyers? In this market to go to the newer more secure access apartment would cost about an extra $30000 just want to know if its necessary. Apartment is in Canberra ACT

I do think that the external access design is outdated and old. This is the reason that this unit is cheap.

Who would want to walk up 3 flights of stairs on a cold winters night or when it's raining, particularly in Canberra. Different matter in Brisbane where you see a lot of these type of units.

I would spend another $30k and buy one that has the more secure and covered access.

Cheers

 

[dmb1978]

Yeah I often think the same when I see people renovating houses here and still don't add an attached garage with internal entry.

The actual unit access is protected from rain and, is built with all the eco mod cons and solar etc so maybe they were taking the environmental approach. The good thing is BC fees remain quite low and it is currently rented with 6.4% return. Just concerned about growth. I was actually looking at apartments in Brisbane but the fees were over 3 times what they are in Canberra.

 

[handyandy]

Yeah I often think the same when I see people renovating houses here and still don't add an attached garage with internal entry.

The actual unit access is protected from rain and,

I am sure it is unit there is a good strong wind behind the rain

s built with all the eco mod cons and solar etc so maybe they were taking the environmental approach. The good thing is BC fees remain quite low

Depends on what you are comparing to. If you are comparing BC fees against block with lifts then sure. There are blocks with internal access that are walk up. Compare the BC fees to them and see how they stack up.

and it is currently rented with 6.4% return. Just concerned about growth.

The returns are higher because of the lower entry cost or because of BC fees? Remember BC fees will vary as required in any building. If there are lifts they will always be expensive.


I was actually looking at apartments in Brisbane but the fees were over 3 times what they are in Canberra.

Fees in Brisbane are higher because the insurance is more expensive and also they have this entrenched issue with onsite management.

Cheers

 

[dmb1978]

Thanks, will look into further.