Good Bad points for Apartments?

[mrtypr]

Hey guys

I live in Werribee area. Still live at home with mum ( not paying rent to stay here)

I want to get into the market. I am first home buyer. The biggest and most fustrating thing I have not been able to decide is the location

I have first looked at Tarneit area which is further out. I can buy a small house there

Or another option is to get something closer to the city such as yarraville, west footscray, Altona North, etc

But those area's I would only be able buy an apartment for my budget of 330k

I mainly care of the value the property will give me and the rental income for the moment

I am trying my best to research, but there's so much info to take in.

Anyway if I were to look for an apartment closer to Melbourne. What are some bad and good things to look for when searching?

 

[Tano]

• Layout of apartment. Maximise use of space
• Outdoor Living area - balcony
• Height of brickwork. eg High ceilings = larger volume
• Walls - Can you hear people walking and talking or smell cooking?
• Parking - Part of the title? Ensure car parking space is transferred with the title
• Internal Laundry
• Land value
• Reno possibilities
• Is there a scarcity value? Or will it be one of thousands in an overdeveloped area?

Building

• Date of construction. Newer Depreciate faster (good for investment) and have less maintainence
• Complex Open space - is the whole block is pretty much building with a roof terrace?
• Cost for Body corp/sinking funds -Elevators, gyms, saunas and pool add to the BC Fees. Best to buy an apartment without these facilities
• 1 or 2 deep apartments. A design which is 3 apartments deep means an internal light well was required
• Secure entry
• Outside storage
• Buy in small complexes (< 16 ). If theres a lot for sale/rent in your complex it will be hard to get a good price (competition) and <16 you're getting a better deal as your investments land portion as a percentage of sites total land parcel.

Orientation/Aspect

• North facing living
• East or West as secondary orientation
• Aspects with a view (water, parks, trees or street frontage)
• A good orientation within the block/development i.e top floor front for an apartment (view) or rear for a villa unit. Generally windows opening to public walkways aren't a good thing
• Do rooms get natural light
• Do rooms look into other peoples rooms

Site Location:

• Site location within walking or short driving distance of at least one of the following public transport services: trams, trains and buses
• Site location within walking or short driving distance of a grocery store and supermarket
• Site location within short driving distance of restaurants and caf?s
• Site location within a short driving distance of existing medical facilities and commercial precincts
• Site location within a short driving distance of at least one university
• The ability to easily access major roads or freeways for the commercial commute.

Buy only strata title apartments, not company title (where directors must approve purchases and renters which restricts the market and banks less likely to approve mortgages to company title

 

[Chris B]

I agree with Tano's list regarding apartments.

I think Werribee & Hoppers Crossing should benefit from the change to get rid of public transport zone 2 from next year, so I would prefer a small house around there. Are you prepared to do some renovation to add value?

 

[mrtypr]

I agree with Tano's list regarding apartments.

I think Werribee & Hoppers Crossing should benefit from the change to get rid of public transport zone 2 from next year, so I would prefer a small house around there. Are you prepared to do some renovation to add value?

I am not a handy man at all

So Id prefer something that only would need minor things improved and fixed

I have been researching from reading Australian Property Investors magazine and there was a section about first home buyer for investors like me which are young
They suggest to buy a unit or house on a decent size block, like a small affordable house/unit on a nice block
As land value increases over time compared to apartments? What you guys think?

Also it suggested to look for an area that yeilds good rent income as time is on my side for capital gains

 

[datto]

Check for cracks and concrete cancer on balconies. Gutters and drain pipes also. Check for evidence of backed drains. Hang out the front and see if any druggies or losers live there.


You still live at home ?, wow , you can save heaps. Do you have a knife and gun collection?

 

[mrtypr]

Check for cracks and concrete cancer on balconies. Gutters and drain pipes also. Check for evidence of backed drains. Hang out the front and see if any druggies or losers live there.


You still live at home ?, wow , you can save heaps. Do you have a knife and gun collection?

Yeh I have saved heaps I have saved 83k. Not bad for my crappy wage

Na I dont have a knife and gun collection lol

I have a video game collection though haha

 

[datto]

Good man.

If you had a knife and gun collection I thought we could do some swaps, that's all.

 

[Peter Parker]

I think Werribee & Hoppers Crossing should benefit from the change to get rid of public transport zone 2 from next year, so I would prefer a small house around there. Are you prepared to do some renovation to add value?

An upside with Werribee (and similar outer suburbs) is that for not much more than a unit you can buy a house on a patch of dirt. So a house seems better value with possible value add and subdivision prospects.

The downside is also that houses have patches of dirt.

Which tenants often do not care much about. When inspecting a house always look over (or through) the leaning fence at the neighbours backyards. Which will reinforce the point about tenants (and probably some owners) not being keen gardeners. Some may also have non-profit home-grown junk or wreckers yards.

So there's both higher risks and higher gains with a house on land. Rental yields on units in Werribee don't seem particularly attractive to compensate for the low land value.

And there don't seem to be many places closer in on the west where you can buy a good 2br unit for a similar price as a 3br house in Werribee (St Albans is handy but shunned by some and Altona Meadows has nicer housing stock but is inconvenient to the train).

 

[mrtypr]

An upside with Werribee (and similar outer suburbs) is that for not much more than a unit you can buy a house on a patch of dirt. So a house seems better value with possible value add and subdivision prospects.

The downside is also that houses have patches of dirt.

Which tenants often do not care much about. When inspecting a house always look over (or through) the leaning fence at the neighbours backyards. Which will reinforce the point about tenants (and probably some owners) not being keen gardeners. Some may also have non-profit home-grown junk or wreckers yards.

So there's both higher risks and higher gains with a house on land. Rental yields on units in Werribee don't seem particularly attractive to compensate for the low land value.

And there don't seem to be many places closer in on the west where you can buy a good 2br unit for a similar price as a 3br house in Werribee (St Albans is handy but shunned by some and Altona Meadows has nicer housing stock but is inconvenient to the train).

Mmm ok thanks for that info pretty useful

Ill probably try and find an affordable area with attractive rent demand and yeild. As this is my first property and I have lots of years ahead for the property to increase in value