Small properties come in all shapes and sizes, whether studios or 2-bedroomed apartments, there is a high demand for small properties in the right areas, and the chance of a big return on your investment is high. Have a look at our advice when planning your purchase:
When planning on taking out a loan for your property purchase, consider the fact that size can affect the type of loan the bank is willing to give you. With properties less than 50 square metres, buyers typically will have pay somewhere around 20 percent of the loan, with added costs to meet approval from the banks.
This is because the majority of banks have lending restrictions on most property sizes of this nature, meaning that they are not a good in terms of capital growth over time.
‘Capital growth’ is important to consider when buying studio apartments or one bedroom flats, because, high rentals do not always stipulate high growth rates in terms of a property being a valuable investment. What looks lucrative on the outside, is not necessarily true in terms a long term investment down the line.
What deems a property valuable, is not necessarily how modern and nicely finished off it is, but rather the area it is situated in. The old stipulation of ‘location, location, location has never ringed truer. Try to look for properties in good areas, or up-and-coming areas that are situated on larger pieces of land which will increase the value.
So you have found your ideal apartment block, but now do you look for a studio, one bedroom or a two bedroom apartment? One bedrooms and two bedrooms are normally of more investment value than a studio, and are easier to let out, but there are always ‘musts’ to look for with all these scenarios.
Studios should ideally be in a trendy, desirable location; in a modern style with nice natural light and should follow an uncomplicated floor design. For one and two bedroom apartments, it is ideal that there are decent sized bedrooms, a spacious kitchen and living space and an allocated parking spot.
Remember when buying your investment property to keep in kind long term capital growth, high returns and to always remember your individual goals are, and buying small can work out in your best interests.
Contact us today on 1300 878 898, to learn more of what this means for you!