Apartments are becoming an increasingly popular investment choice in Australia, particularly amongst young couples and first home buyers entering the property market.
If you plan on joining the trend towards community living and buying your first Perth apartment, there are a few rules and regulations you may want to consider before signing the dotted line.
Know your strata responsibilities
When you buy an apartment or unit in a shared complex, you are also buying into a strata title. As well as owning your individual apartment, you will also own a share in common areas such as gardens and joint facilities. As a result, there are certain responsibilities and regulations you will need to follow in accordance with your body corporate (also known as the strata company).
Before buying your Perth apartment, you will need to get a copy of the by-laws to ensure you know your rights and responsibilities as a lot owner. For instance, is the apartment pet-friendly? Are there any restrictions that apply to your apartment? If the by-laws are particularly restrictive or unreasonable, you may want to think twice about purchasing. If you plan on using the apartment as a rental property further along the line, you will also need to consider whether the apartment (and the relevant regulations) will appeal to future tenants.
Ask before you buy
Before purchasing an apartment, you will need to know exactly what you’re buying into. You don’t want to buy an apartment to find there are hidden (and costly) problems with the property later on. If you plan on using the apartment as a rental property, you need to know you’re investing in a friendly, well-maintained strata complex. Whilst it’s standard for buyers to receive a copy of the Annual General Meeting Minutes once an offer is accepted, it’s worth asking the seller those all-important questions before you decide to invest in your Perth apartment.
Before purchasing, you should ask the seller for information on planned building works, insurance policies, and strata disputes that could affect you (and your wallet) in the future. This should give you an idea of whether the strata complex is well-managed, well-maintained and a generally pleasant place to live.
Budget for your investment
Whether you plan on living in your apartment or renting it out for income-producing purposes, you will need to set a realistic budget before investing. Many new Perth apartment complexes offer extensive amenities that result in higher strata fees, so this is something you definitely need to consider before budgeting. As well as paying costs such as council fees, lot owners will also be required to pay levies (usually quarterly) to account for ongoing costs such as building maintenance. If you plan on buying an apartment, it’s important to ask the seller if there is a reserve fund in place or if there are any special levies due to be paid soon. This will ensure you’re not confronted by any unexpected costs shortly after purchasing.
Consider enlisting property management
If you plan on using your Perth apartment as a rental property either now or in future, you should consider enlisting the help of a local property management service. Apartment living is becoming a popular choice amongst Australians, so it’s important to keep on top of market trends and ensure your rental apartment remains competitive in the current rental market. With their in-depth knowledge of the Perth property market, the property management team at Rentwest Solutions will ensure your rental prices remain competitive and your investment property is well maintained throughout rental periods.
Want to know more about Rentwest Solutions’s property management solutions? Contact the team today on 9314 9888 or email us at [email protected].