What to look for in inner city apartments?

Hi There,

Looking at investing in OTP apartment 2km from Brisbane (please, no arguments about why OTP is a big risk - I've already done all that due diligence).

I have narrowed it down to:

apartment in big (25 story) resort style development right in the middle of everything with heaps of facilities (eg. lagoon style pools, rooftop gardens), apartment size is 85m2 internal;

OR

apartment in smaller building (9 story) with some facilities (eg. pool, gym) but almost 100m2 internal with extra storage available too. This one is a short walk 300m to the other one, so while not right next door is very close.

Purchase prices are the same. Obviously body corps in the smaller development will be lower ongoing. I'm leaning towards the smaller development as I don't think everyone wants to live in those very busy resort style buildings do they?

Opinions please...
 
Regarding oversupply, am a little concerned, but am looking to buy and hold for 20 years+. There may be a lag in the short-term, but long term I can't see the capital growth not being there. That's also why choosing the right apartment is key - obviously if there are 500 cookie-cutter apartments just like yours you may have trouble renting/selling. Hence why I'm thinking the more unique/larger apartment in smaller complex would be the go.

Additionally, I would be more concerned if I already owned IP in areas 5km out of city as they are renting for similar to these new developments and I can't see why people wouldn't move out of those areas to get closer to city/work if the prices are essentially the same?
 
In the last 2 days you've managed to go from wanting a BA in 2 cities to not only narrowing down to a single city but then a specific area and type of property within that city?

Just make sure you're not rushing because mistakes can happen that way, I know I did that in the past when first starting out and cost myself time and money.

Re your question at face value of be inclined to go with the bigger one with lower strata fees but it's hard to say without knowing quality of development, floor plans and finishes etc.
 
apartment in big (25 story) resort style development right in the middle of everything with heaps of facilities (eg. lagoon style pools, rooftop gardens), apartment size is 85m2 internal;

OR

apartment in smaller building (9 story) with some facilities (eg. pool, gym) but almost 100m2 internal with extra storage available too. This one is a short walk 300m to the other one, so while not right next door is very close.

Purchase prices are the same. Obviously body corps in the smaller development will be lower ongoing. I'm leaning towards the smaller development as I don't think everyone wants to live in those very busy resort style buildings do they?

Opinions please...


Depends how many apartments there ar ein totoal but:
- bigger developments, more owners, less agreement on BC
- taller building, more/longer lift runs. Lift maintenance is a massive cost, and can run into the million $ range to keep them running and safe. They need safety checks, maintenance, and recabling works, on the motors, barkes. electronics. If you think about it, the safety issues in a lift is almost as big as in a car.

The Y-man
 
Hi again. The BA is for my MD (boss) at work who asked me to help with research. Budget $1M - $1.5M. The OTP one is just for me and my hubby... Slightly lower budget!

Oversupply definitely is a concern. If there are too many units in this suburb won't that not only devalue new units in that area but existing ones; as well as new and existing ones in adjacent areas?

Does this mean the whole inner city 2km zone would then be a no-go?
 
Just sayin'

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