Purchasing a rundown apartment is a great way to break into the property market, especially when we’re in the middle of a strongly performing market.
But before you race out to find somewhere in desperate need of TLC, stop and do some research about local prices and buyer trends in our neighborhood.
As an experienced agent in this area, I can guide you on recent prices for apartments, as well as what you might expect your investment to return in the medium to long-term once the remodelling is complete.
Apartments are popular because they can be an affordable way of securing a great urban location. They’re usually lifestyle-focused which means great upgrades to consider include modernizing the bathroom and a kitchen with contemporary cabinetry and quality appliances.
Once you have your plans in mind, check if approval is required from a local authority and the body corporate.
Below are some tips to help make your remodel a success.
In the meantime, if I can help you find a suitable apartment or help you sell your current property, please do not hesitate to get in touch. With the market in a strong phase right now, there’s plenty of competition among buyers.
- Remodeling works in good times – The best return on investment for an apartment is when the economy and the property market are humming – and they sure are buzzing now.
- Fix your budget – Remember to leave cash in reserve for the remodel after your purchase. Put 10-20% of any remodeling budget aside for unforeseen problems and expenses. Be disciplined and make sure your plans stay within budget.
- Avoid spending too much – Beware of over capitalizing. Just because you have undertaken improvements does not mean you’ll receive all of that money back when you sell. Keep your work in line with a resale price that the neighborhood can deliver.
- Fix problems first – Projects that generate the best return fix an issue, such as a tired bathroom, dated kitchen or small living area. Be aware, though, that life can get complicated with the body corporate if you want to move walls.
- Talk to neighbors – It’s always a good idea to make sure your neighbors know contractors will be a regular, short-term feature and what they should expect in terms of dust and noise. This way, you head off any concerns – and maybe make a new friend.
- Hire the best – A minimum of three quotes for the work is essential. Ensure your contractors have current licenses and insurances, and they provide references that you can check personally.
- Get great advice – As your local agent, you can ask me about buyer trends in your neighborhood and where you’re likely to get the biggest return for your remodeling investment.