Top tips for buying an apartment

If you’re looking to buy a property at the moment, the apartment market is proving to be less volatile than detached housing.

The latest CoreLogic figures show a 1.4% decline nationally in apartment prices in the three months to the end of July.

But if you look at the year-on-year figure, it’s down 0.2% because apartment values grew in the first nine months before the Reserve Bank began raising interest rates.

In capital city markets, Sydney and Melbourne have caught the most attention.

Values have declined for six consecutive months in Sydney and dipped 1.5% in July. Melbourne’s recorded sales dropped 1.2% in value in July and 2.1% in the second quarter of this year. 

Similar results can be found across the country but not in every suburb. Market strength still varies even over short distances. 

But remember, prices are still dominated by a suburb’s desirability and the number of nearby properties for sale: the classic supply-and-demand story. 

So it’s important to continue researching your target areas, and not just use only national figures to guide your decision-making. 

We’ve provided some helpful tips to help you find the right apartment to suit your needs.

Layout

Take careful note of the floor plan to make sure that every space is used. Check there are not wasted spots in hallways or other areas.

Let there be light

You want plenty of natural light. Check whether trees block sunlight and deny the unit the sun’s warmth. If you have a north-facing unit, it may get super-hot in the summer.

Accessibility

This is important for the enjoyment of your new apartment, and your ability to sell when the time comes. A lift is essential if you’re going to live several floors up. Easy access to any swimming pool, gym, or gardens is also highly desired because if it’s difficult, you’ll probably not use them and waste money on their maintenance.

Amenities

Features such as a swimming pool are valuable assets but ask about strata fees because such luxuries are not laid on for free.

Security

Good security, both for building access and the parking area, is a valuable asset. 

Renovations

Ask about any scheduled work on the building that has been agreed or is being considered by the strata committee. The owner may be selling to avoid a significant expense. Ask for minutes of recent strata committee meetings to understand any issues with the building, neighbours or council services.

Local rental scene

An area popular with renters can give you options down the track. For example, you could turn this first purchase into an investment property instead of selling it when you decide to upsize.