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Appetite for apartments unwavering | The West Australian

The property market is likely to see an increase in investors with low vacancy and great affordability in Western Australia’s current climate.

Apartments have long been an appealing investment for those with a little extra cash or looking to purchase a second property.

ARENA Real Estate Partner and Sales Associate Brad Triplett said over the last 12 months, investors appeared to be coming back into the market in Perth, with rental yields reaching a point where they were offering significant returns.

“The appetite has improved furthermore recently,” he said.

“Since the borders in Perth recently opened, we have noticed a spike in east coast investment enquiries, particularly from those based in Sydney and Melbourne.

“Those markets have reached boiling point, so people are looking at other avenues to invest their money and Perth is on the hit list, as we are still offering great value in comparison to other cities around the country.”

When looking for an apartment to invest in, buyers should understand what attracts tenants, adds value and makes each property appealing.

Mark Hay Realty Group Principal Mark Hay said there were a number of important elements investors should consider when buying an apartment.

“The ever-important ingredient of sound property investment is always location,” he said.

“Both location of the actual project and the aspect or location of the specific apartment within the complex should be factored in.

“Location in regard to transport, entertainment, and other services should also be given consideration.”

Inner-city apartments tend to perform well, offer a higher rentability and won’t have trouble attracting tenants, according to Mr Triplett.

“Apartments are also lower maintenance than a large home on a big lot, so long term they are simply easier to look after,” he said.

Another consideration is how secure apartments are, even in affluent neighbourhoods where security doesn’t seem to be a problem.

“Both security of the common areas, such as the foyer and car park, and the specific apartment itself, is paramount for both rental and resale value,” Mr Hay said.

“If purchasing on a ground floor, be extra attentive to security issues.”

Other considerations include functional spaces such as amenities.

“The obvious commercial facilities, such as swimming pools, saunas and gyms, offer great attractions but equally important is access to smart wiring, dual phone lines, cable TV and more,” Mr Hay said.

“These are now becoming everyday requirements for both the rental and resale market.”

According to Mr Hay, the majority of apartment dwellers need their kitchen and bathrooms to be stylish and functional.

“Whether you are purchasing at the bottom end of the market or top end, the kitchen still needs to be completely functional and is always a strong selling and renting point of any apartment,” he said. “Bathrooms, to a lesser degree, also need to be functional for today’s living – stylish, roomy and not just an afterthought.”

Other general things to consider are the age and size of the apartment, how many others are in the complex and maintenance plans.

Mr Triplett said best-selling apartments seemed to have the same attractions in common.

“Having good natural light and a functional floor plan are always aspects to consider,” he said.

“It’s important to look at how a complex is being run from a management level.

“Is it financially secure with a nice level of cash reserves in the sinking fund?

“This is really important long term for any apartment complex to ensure there is not going to be any future undesired surprises.”

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