Apartments and Units
Point of difference
We recommend buying investment apartments with a point of difference such as water views, located on a golf course or near a vibrant city centre to ensure demand and capital growth.
What are apartments and units, and why invest in them?
Apartment buildings are strata-titled, multi-level residential developments consisting of individual lots. Each individual lot owner also owns part of the building and common areas along with their residential unit.
The common areas include lifts, entrances and lobbies, car parks, gardens and any recreational facilities such as pools and gymnasiums.
The owner's corporation is responsible for managing and maintaining the building and common areas. Owners pay an owner's corporation fee, otherwise known as a strata levy, to cover these activities.
An individual lot may also be referred to as a unit, or apartment.
Apartment buildings tend to consist of three main categories:
- Low rise buildings: two to three stories, which may or may not include lift facilities
- Medium rise buildings: four to seven stories with lifts
- High rise buildings: eight or more stories with lifts
Inner-city developments are popular as investment apartments. This is due to their affordability which offers purchasers a range of pricing options. Usually, units on lower floors or those with restricted views are most affordable. Higher level dwellings with views, or the penthouses are most expensive.
Units tend to require less maintenance than a standalone house or townhouse, providing the occupiers with maximum use of their leisure time.
A further driving factor for attracting tenants are the amenities. The development will typically feature amenities such as pools, spas, gyms and entertainment rooms. These will be for the exclusive use of the residents.
Extra security is also provided, usually security gated underground parking with direct elevator access. Typically all buildings require key cards or codes for entry to the building, and to access the lift.
More and more inner-city dwellers see public spaces as extensions of their home. Buildings located near facilities such as bars, restaurants, sporting facilities and parks can provide a resident with a tremendous inner-city lifestyle.
Most units are also close to essential infrastructures such as train, tram, and bus stations, making the working commute far more achievable.
A further added advantage for an owner of an investment apartment is onsite managers overseeing the building. As they have a vested interest in the proper management and operation of the complex it is in their interest to look after your unit. Also, many buildings allow holiday letting, which if undertaken, can provide a higher rate of return than residential letting.
A small selection of investment apartments and units from our current availability
Please Note the website is currently being updated and the sample will be uploaded shortly
This is a small sample of our currently available investment apartments for sale.
Assuming a criteria of combined income of $120,000, single income of $100,000, or equity in your own home, these properties demonstrate the approximate benefits to purchase and hold. Some of our list may be purchased as a single contract, therefore suitable for SMSF. Please contact us for details.
$136 Cashflow Positive per week
Dual Occupancy
- Profile id 10002
41km north of Brisbane CBD
$458,000
4+1 Bed, 2+1 Bath, 1+1 Car
Coming
Apartment
- Profile id 10008
From $410,000
1 Bed, 1 Bath, 1 Car & 2 Bed, 2 Bath, 1 Car
$12,000 below Valuation
Apartment
- 1 Contract
Brisbane
$440,000
2 Bed, 2 Bed, 1 Car
When and where to buy an investment apartment
Units typically begin selling "off-plan." This contractual arrangement means they are purchased before the building has been completed, and frequently before the construction has even begun.
Developers often require "pre-sales" to obtain funding for the construction of apartment buildings. The longer it takes to gain the funding, the more the Developer is paying interest on the Land, and construction cost rise.
Often, to obtain the required pre-sales, Developers will incentivize the purchase. Sometimes there is a pre-release offering made available through preferred agents prior to public release. Usually this is $10,000 - $20,000 less than the official listing price.
Once the Developer feels they have traction, or funding is confirmed, units are "publicly" made available for sale, but at a higher cost than the initial release. The increase of prices can occur once, or several times during construction, dependent upon the size and length of time the building takes.
At the end of construction, a few units may remain for sale. At this time it costs the developer to hold them as they will typically be paying interest to the Bank. They may also be incurring the costs of maintaining a display unit.
The developer may reduce the sale price for these remaining properties to obtain quick sales. These apartments are often the least desirable in the building; otherwise, they would have sold sooner.
The best time to buy investment apartments is at the start or end of construction.
The risk when buying units early in construction is that the lender only has them valued after they are built. Finance becomes unconditional when agreeing to the contract. If the valuation is low, the purchaser has to fund the shortfall in lending.
However, this risk can be minimised by buying prior to the Public release to ensure you are buying at a lesser price. It may also be minimised by having an independant valuation undertaken on the proposed unit.
The risk when buying units towards the end of construction is that all the best properties may be gone.
We recommend buying investment apartments with a point of difference such as water views, located on a golf course or vibrant city centre to ensure demand and capital growth.
TIPP are here to help
We work with boutique developers as well as with large developers, which means we can access investment apartments in a wide range of locations, including the smaller, more exclusive buildings in the heart of the CBDs.
We specialise in finding investment properties to suit all budgets and investment objectives. With access to properties across Brisbane, the Sunshine Coast and Gold Coast, we can source a wide range of apartments and units, both off-plan and complete. So, if you’re looking for a quality investment property, contact us today.
