Professionals Real Estate 
Professionals Real Estate Group has recorded a doubling in activity by property investors in Western Australia during the first three months of 2014. According to Shane Kempton, CEO of Professionals, investors accounted for 20% of all property buyers who purchased a home through Professionals during the March quarter 2014 compared to 10% during 2013. “Low interest rates, high rental returns and rising house prices are encouraging more mum and dad property buyers back into the local property market.”
“In particular, Professionals has recorded a surge in activity by baby boomer investors who are now moving their cash savings from low interest rate saving accounts into real estate. These property investors have been particularly active in the apartment market because apartments tend to be more affordable than family homes and can offer higher rental returns depending on their location. As a result of this strong activity by investors in the apartment market, there has been a upswing in the launch of new apartment developments around Perth over the last six months.”
“First time investors,however, need to undertake careful research before buying an apartment as issues such as strata fees and other costs need to be considered as well as the fact that an apartment owner is dependent on other others to help maintain the complex which is unlike owning a stand-alone family home,” he said
Mr Kempton offered the following tips for first time investors considering buying an apartment over the coming months:
- Check the exact internal floor space of the apartment. The price of the apartment should be measured in the cost per square metre and this will give you a good comparison compared to similar apartments in the same area.
- Before purchasing an apartment, check the average weekly rent for a similar apartment in the same location. This will give you an indication of future rental returns.
- Check the quarterly strata fees and if there are any plans to upgrade the complex.
- Check how many apartments in the complex are owner occupiers. Owner occupiers tend to take a much more active interest in the upkeep of the complex. If more than 50% of the apartments are owned by owner occupiers then the complex should be well maintained.
- The views that the apartment can offer is important. If you are buying an apartment with good views, check that nothing in the future will interfere with these views i.e. the construction of a new building in front of your apartment.
- Parking is also very important when buying an apartment. Check that your apartment has a dedicated car bay and the ownership structure of car bays in the complex.
- One bedroom apartments as opposed to two and three bedroom apartments are very popular because more people are tending to live alone.
- Obtain finance approval before making an offer on an apartment as this will increase your negotiation position.
- Remember that if you are buying an older apartment for renovation purposes, you may have to obtain approval from the other owners for certain improvements i.e. the installation of air conditioning.
