What to look at when buying an apartment (and why now is the time!)
As the rental vacancy rate continues to fall dramatically across Perth, so too does the argument for trading renting for home ownership.
Perth’s property market saw a 42.5 per cent increase in sales activity for the month of December compared to the same time the year prior.
Incentives to make 2021 the year to buy property continue to stack up. Ongoing record low interest rates combined with continued State and Federal government subsidies make buying this year a very attractive option at a time when rents are continuing to rise due to Perth’s low rental stock levels.
With supply in both the sales and rental property markets facing mounting pressures in 2021, many Western Australians are choosing the value, convenience and security that apartment living offers.
Recent reports across the country have tipped the WA property market to be the strongest in the country with an expected growth rate of up to 12% tipped by some industry experts.
The rising rental and sales market is also slowly luring investors back to the market after a long hiatus. Last year, the number of investors buying Finbar properties increased by 8.1 per cent compared to 2019, taking our investor portion up to 40 per cent. In 2021, we believe that figure will likely surpass the 50 per cent mark pushing prices further north and cementing the ongoing recovery of the local market.
Vacancy rates will continue to be low in 2021, and we expect to see an increase in foreign buyers entering the market to buy property in Perth, attracted by its safety, security and laid back lifestyle.
AMP Capital chief economist Shane Oliverexpects Perth dwelling prices to increase by up to 10 per cent. Westpac has forecast housing price growth of up to 8 per cent for Perth and ANZ expects Perth prices to rise 12 per cent in 2021.
For many Aussies, apartments provide unbeatable value, enabling them to live in locations they may have always seen as unattainable with a range of amenities minutes from their doorstep that they wouldn’t otherwise be able to enjoy.
Here’s a few helpful and less obvious tips to consider when looking at buying an apartment.
Investigate the developer: It’s important to buy from a developer that has considerable experience in apartment construction – be sure to inspect one of the apartments they have constructed previously and do your homework on their construction quality
Check if there are any forecast capital works in the building or other planned developments in the area: See if there are any capital upgrades planned for your building and if strata management has sufficient reserves to cover them. Check with the local council regarding what is planned in the near future. Some basic research will let you know what amenities may be on the horizon and which may boost your property value post purchase.
Always check Strata fees and how they’re allocated: Make sure you are aware of what the strata fees for the building are. They depend on the size of the building and the facilities included so expect higher strata fees when you have amenities like pools and gyms.