Units, what to look out for?
- Thread starter ozzier
- Start date
In most respects, you'd treat if the same way you'd treat any property purchase. A few things to give further consideration when dealing with units would mostly be related to common property and the body corporate:
* What are the body corporate fees
* Is the BC activly managed
* Is insurance coverage sufficient
* Is there a sinking fund, is one required
* How much competition is there for tenants at any given time
* What are the body corporate fees
* Is the BC activly managed
* Is insurance coverage sufficient
* Is there a sinking fund, is one required
* How much competition is there for tenants at any given time
Besides the aforementioned:
* I like bread and butter 3 storey walk up units built in the 70's-90's. They have no elevators, no gym, no sauna, no pool and therefore lower BC fees. They are generally SOLID-as and close to un - destructible!
* I also prefer parking.
* Small complexes. 15 or less is great.
* Close to transport
* I like bread and butter 3 storey walk up units built in the 70's-90's. They have no elevators, no gym, no sauna, no pool and therefore lower BC fees. They are generally SOLID-as and close to un - destructible!
* I also prefer parking.
* Small complexes. 15 or less is great.
* Close to transport
Make sure you are buying the appropriate dwelling for the demographic of the area you are buying in.
Look at the ratio of dwelling types on any data house website, consider the past total returns for this type of dwelling within the area and the prospects for future CG.
Is there a scarcity value? Or will it be one of thousands in an overdeveloped area?
Look at the ratio of dwelling types on any data house website, consider the past total returns for this type of dwelling within the area and the prospects for future CG.
Is there a scarcity value? Or will it be one of thousands in an overdeveloped area?
As part of layout, where the unit is in the overall complex noting the garbage area.
Generally windows opening to public walkways aren't a good thing either which can be a downside of old 70's type flats.
A search of how many unit in the block are rentals also may be of interest
The most important things to get right are those that you can't change:
1. Location
2. Orientation/Aspect
3. Size
Location ideally to be:
Residential Zoning (R1Z in Vic)
Quiet Street
Close to shops, transport, amenities
Orientation/Aspect ideally to be:
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 or rear for a villa unit.
Size ideally to be:
Larger than the comparable units in the area.
60's and 70's blocks typically had larger internal spaces
Minimum size
1 bed 50sqm+
2 bed 65sqm+
3bed 100sqm+
1. Location
2. Orientation/Aspect
3. Size
Location ideally to be:
Residential Zoning (R1Z in Vic)
Quiet Street
Close to shops, transport, amenities
Orientation/Aspect ideally to be:
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 or rear for a villa unit.
Size ideally to be:
Larger than the comparable units in the area.
60's and 70's blocks typically had larger internal spaces
Minimum size
1 bed 50sqm+
2 bed 65sqm+
3bed 100sqm+
Always look for one of the better located units in the complex. You may not get much in extra rent but if more than one unit is vacant then you have a much better change of minimising vacancies.
We owned a unit in a complex of 80. Our unit was in one of the best locations, and most of our tenants came from other units in the complex. The manager had a waiting list of tenants who wanted to move into a better location.
Marg
We owned a unit in a complex of 80. Our unit was in one of the best locations, and most of our tenants came from other units in the complex. The manager had a waiting list of tenants who wanted to move into a better location.
Marg
