Tips for Buying a Unit or Apartment

Apartments and units are a fantastic addition to any investor's real estate portfolio. They're low-maintenance, often located in great areas close to amenities and are usually in high demand from accommodation seekers.

Over 2013, the gross rental yields for apartments has increased through most parts of the country. As a result, rental yields for apartments and units in some areas have surpassed that of houses.

Whether it's due to their slightly lower purchase prices or slowly growing rents, apartments should be an option to consider as the next addition for your investment portfolio.

Do your research

If you're buying an apartment or unit to rent out as accommodation, then you'll need to buy in an area with a good vacancy rate. The vacancy rate is set as a percentage figure and indicates the number of vacant rental properties on the market. Therefore, the lower the vacancy rate, the better your chances are of securing tenants.

Inner-city areas tend to boast a low vacancy rate, so this might be a good launching point to start your property search from.

A number of factors can affect an area's population rate. Housing supply, employment, liveability and affordability are all factors which can influence the number of vacant properties on the market.

Understand the ongoing costs

When you look for an apartment, the most important factor on your mind is likely going to be the price. As apartments and units are usually cheaper than house and land packages, they do make a great investment.

However, apartments and units still have ongoing costs you'll need to factor into your budget.

Many apartments and units will be subject to strata fees, which can range in price between buildings.

These costs will go towards paying for communal expenses, such as lighting and repairs in communal areas of the complex. This might play a big part in your decision to buy a property, so it is definitely worth checking what these are with the real estate agent.

Get the right location

To ensure your rental property is appealing to renters, it's best to find an apartment that is located close to good amenities. Nearby features such as entertainment centres, public transport, employment opportunities and shops are all great amenities to keep an eye out for.

It may also be a good idea to find an apartment in a generally good neighbourhood. Across the country, many state governments are creating urban renewal centres, which often provide great investment opportunities.