Crucial tips when considering a unit investment

As infill and high-density apartment living rapidly appear on city landscapes across the nation it’s important to know what to consider when buying one as an investment, according to a Western Australian multi-unit builder.

Scott Davison of Pindan offers the following starting points:

Research the development team

– Find out about the project's developer, architect and builder to get a sense of their track record and reputation. Have a look at their previous jobs and what awards they’ve won. The developer and architect typically control the design of the building, whereas the expertise of the builder will determine the finished quality of the product.

Design

Good design often translates to better resale value. Minimal corridors with convenient lift access, generous balcony areas, spacious living areas and a cleverly designed, functional layout that makes maximum use of space are critical design elements. Take note of the total unit area, as this can vary significantly.

Proximity to lifestyle facilities

Complexes located close to lifestyle facilities such as cafés, supermarkets, medical care, schools, gyms, recreation centres and transport are likely to be better investments as they add value to your property. The best multi-unit properties also have water or city views or are only a short drive to the water.

Common areas

Many multi-unit complexes boast resort-style facilities such as spas, pools, barbecue areas, tennis courts, gyms etc. Having these facilities at your fingertips is not only convenient for tenants, but can save them money on outside recreational costs and also add to the property’s value. The cost of maintaining these facilities will be reflected in the purchase price and your strata fees, so consider if the benefit justifies the cost.

Inspect fixtures and quality closely

If you’re purchasing a completed unit, inspect the detail and quality of the finished product closely. Quality fixtures and fittings are a must as they will last longer and avoid maintenance headaches and don’t be afraid to ask questions about warranties and after sales service, especially if they are not recognised brands.

Acoustics

– Question the acoustic treatments in the units, including cavity walls to party walls and corridors.

– Acoustic membranes under hard floors – check if the hydraulic services acoustic are wrapped.

– Consider the internal layout of the unit and if sound will travel or if it can be contained.

– If there are two or more bedrooms and bathrooms, consider if the master bedroom is separated from bedroom two as this is best for privacy, and if the bathrooms are close to the bedrooms.

Parking

Consider carefully how much parking is available at the complex for both your family and your visitors. Parking options dramatically affect the value and price of a property in a multi-unit development. A general rule of thumb is that a two or more bedroom apartment should come with two car bays.

Cost and value

Just because a unit costs less doesn’t necessarily mean that it’s better value. The purchase price needs to be considered in conjunction with all of the attributes of the development and your specific requirements and, of course, you must be able to afford the unit you’re considering.