Brand new apartment vs newish apartment

[cimbom]

Hello,

Just out of curiousity, I was wondering if I could get some idea about which of the below would be better as an IP (PPOR for 1-1.5 years then rented out).

Apartment 1
About 5 or so years old
1 bedroom, 1 bathroom, 1 car space
On ground floor with courtyard
Well maintained
Good quality fittings like nice curtains, etc
Smallish kitchen
Not sure of size but around 60sqm
Close to lake and parkland
Convenient location near amenties
Smaller, nicer looking building (3 floors)
$1750/year body corporate fees
About 20k (maybe 30k) cheaper than apartment #2
IO loan repayments: $400/week
Weekly rent: $390 - 400/week

Apartment 2
Built this year
1 bedroom, 1 bathroom, 1 car space
New so I'm guessing there'd be less maintainance/repairs required
More roomier with more storage in kitchen
Size is 67.5 sqm
Also on ground floor with terrace
Located in a slightly busier area but both are in convenient locations
In bigger building complex (7 floors) with pool and gym facilities
$1070/year body corporate fees
Bit more expensive than apartment #1
IO loan repayments: $420/week
Rent: $400/week (advertisement claims currently being rented for $450 fully furnished but this seems like a crazy tenant to pay that much as other apartments in same building are going for this price)
Other apartments available in building that are the same price but have slightly less space (58sqm) and are on higher floors.


I look forward to hearing what you think

 

[Aaron_C]

If the locations are the same I would prefer #2 because it's bigger and less body corporate fees with better facilities.

 

[The Y-man]

cimbom,

I would be a bit suspect of the BC fees for the newer apartment - they could climb quite rapidly next year when the BC finds they have new items etc. It takes a few years for the figure ot "settle down" to a routine one.

Having said that, on these figures alone, I would go the bigger floor space.



The Y-man

 

[lamecrocs]

A bit off topic but since we are talking about new apartment and I just bought a new one, let me tag on to this thread...

Is it a requirement for the seller to clean the place before the buyer move in? i.e. steam carpet, area cleaning, etc. Although, the place is still new... but the unit has been opened for inspection etc.

The floorplan given to me doesn't have scale measurement (e.g. how big the lounge/bedroom). Is it a requirement for the seller to provide ? as it will be so much easier for us to buy furniture.

Thanks.

 

[Propertunity]

The answer to both your Qs is NO.

 

[The Y-man]

A bit off topic but since we are talking about new apartment and I just bought a new one, let me tag on to this thread...

Is it a requirement for the seller to clean the place before the buyer move in? i.e. steam carpet, area cleaning, etc. Although, the place is still new... but the unit has been opened for inspection etc.
.

Most likely a "nice to" but not "need to" unless there has been damage.

The floorplan given to me doesn't have scale measurement (e.g. how big the lounge/bedroom). Is it a requirement for the seller to provide ? as it will be so much easier for us to buy furniture.

Thanks.

Not that I am aware of. Time to get a tape measure

The Y-man

 

[cimbom]

Thanks for your input. It's currently listed for 340k but I want to get it down to 310-320k if I can. Worth a try anyway

 

[lamecrocs]

Thanks for your Propertunity & Y-man as always.

"Not that I am aware of. Time to get a tape measure "
Can I reuse this advise when it comes the time to sell ?

 

[Lil Skater]

Hi Cim,

I'd go with apartment 2.

May I ask though, you say the rental return on both properties is around $400 per week but apartment 2 sounds much more appealing.

Are the properties far apart?

 

[cimbom]

They are less than a km apart. Apartment 1 has just had an acceptable offer made on it so it looks like it'll be apartment 2. The first one wasn't that bad and actually looked better from the outside than the second one (not that there was anything wrong with it). It was also close to a nice lake and park. Both are convenient located and inside they're both similar.

I was actually leaning towards the first one because it's more unique (smaller block and less apartments) and a bit cheaper to buy.

Not looking to buy for another two months or so as we have some small debts we want to get out of the way first. Hope it's still around then.