For many new investors, purchasing an apartment may seem daunting, which is too costly or difficult to achieve. But according to most investors, purchasing apartments is among the easiest strategies in the market.
Apart from being simple to manage, apartments may yield a sizeable income without investing a lot of money. If you are new in the industry and want to also make some income, the following are tips to ensure you buy the right apartment:
Go for Something Much Bigger
One of the criteria for buying your first apartment is the size of your unit. If possible, go for an apartment with many bedrooms because bigger ones appeal to many prospective buyers.
This is also one way you may think about the value of your new apartment. Plus, three or four-bedroom apartments deliver good results compared to single-bedroom apartments.
There are a lot of Santa Ponsa properties out there, all meeting different things, from security and car spaces to location and shared amenities.
So when looking for an apartment to buy, it would be best to have a list of what is vital and tick off all the developments, which don’t match.
This should also include determining what apartment by-laws are. With this, you will find out if you can move in with your pets or not.
Consider the Location
Ask anyone who has invested in real estate what factor to look for when buying an apartment, and the response will be location.
The best location can depend on many things, but for most, it must be characterized by:
- Good schools
- Safe neighborhoods
Put Funds Together
There are a lot of options for every real estate investor, especially for those looking to invest in apartments. For instance, interest-only loans are popular as they enable investors to focus on paying their home loans, which are basically not tax-deductible.
You can also use equity from other properties and savings to avoid lenders’ mortgage insurance and minimize the purchase costs.
Prioritize Your Lifestyle
If your desire to have a bigger garden outweighs the time you need to repair and maintain it, then properties such as single-family houses or townhouses can be a suitable option.
Similarly, if sharing floors, walls, or ceilings with your neighbors doesn’t appeal to you, apartments might be the kind of property you are looking for.
Mostly, apartments work best for individuals comfortable with aspects of living in a condo, excluding the maintenance required.
Understand the Body Corporate or Strata
Real estate properties with common areas and shared facilities, including apartments, are usually under a strata title.
This means that, although you own the property and are accountable for everything that involves your apartment, you will be responsible for the maintenance of common facilities and areas, including all the costs accrued.
Before you buy your first apartment, experienced real estate investors advise you to hire a solicitor to help you assess the title document of the asset.
Your solicitor will also find out if there are court litigations, zonal regulations, government acquisition proceedings, and minor claims.