Purchasing an apartment can have its merits. These types of properties can be more secure and have lower maintenance. Also the fact that the land cost is shared by many can mean that you are able to afford a more central location.
Apartments are a little different to most properties so some care is required at the time of purchase.
When buying an apartment through a real estate agent you will be provided with a disclosure statement which will include details about the body corporate. It is important to have a read through body corp meeting minutes for the past few years. This should reveal any known issues about the apartment.
Checking the body corp rules can also be important so that you are aware of any restrictions, such as adding a heat pump.
Smaller apartments in Auckland CBD
Compared to a regular house as an investment smaller apartments in the CBD can have some benefits. Do ups can be completed quickly and cheaply. If you are buying to rent out in the Auckland CBD, consider furnishing them as this can open the apartment up to a wider variety of tenants.
Off the plans vs existing
In a market where values are heading up buying off the plans can lead to instant profits at the time of settlement. However the opposite is also true.
Some of the risks in buying off the plans can include delay’s in settlement which can be challenging if bank rules have changed. Some of the benefits of buying off plans can include, getting warranties for new fixtures and lower body corporate fees for the first few years as maintenance would be minimal.
Leasehold vs freehold
If the underlying land is leasehold you may be up for an annual cost which could be subject to change, effectively these types of apartments require extra consideration. The land is what increases in value in the long term so I would question the logic in buying leasehold. However there are some situations where this type of purchase can make sense.
