By Paul Reid
Apartment vacancy levels rise over Christmas and New Year, but come January, many GrownUps start shopping for an apartment for their sons and daughters in time for the new academic year. The CBD apartment market is at its busiest from late January to the first week of March.
The big thing to remember in preparing to become your son or daughter's landlord is you are not buying an apartment for yourself to live in. You are buying for a set purpose, and once your child graduates, the apartment needs to have increased in value when you go to sell. A car park, for instance, is not necessary in terms of an investment and can add another $50K to the purchase price.
When it is time to sell and realise your apartment's value, you are probably going to get a better price if the apartment is vacant and presented well by a home staging company.
A nice box apartment in the Auckland CBD currently sells on average for $150-200K. If you want a second bedroom for a flatmate to help pay the mortgage, you're looking at around $250. Add a carpark and you are looking at $300K. A balcony's nice if you can get one. Cash buyers get a better deal and are in a strong position to negotiate a discounted price.
Stick to the guidelines to buying well
1. Buy for the purpose
2 & 3. Look for a well located, freehold apartment
4. Get a builder's report first before you present your offer
5. Do your homework and check the body corporate minutes for the last three years
Once these five boxes are ticked, you can present an offer that doesn't involve any hold-ups which puts you in a strong position in terms of competing offers. Get in early if you intend to buy in January before others pick the eyes out of the best buys on the market.
Please ensure that you have read the GrownUps Terms & Conditions of use prior to clicking the link below.
Grown Ups does not recommend any financial product on GrownUps or a site which Grown Ups provides a link to. No articles or linked sites are financial advice for the purposes of the Financial Advisers Act and should not be relied upon in making an investment decision. We recommend that you seek professional advice from a suitable authorised or registered financial adviser which takes into account your personal circumstances before making an investment decision. Do not sign any document without taking proper advice from a professional and competent person you trust
- 11 years ago
Thank you ******* for this article, I would like to add a small tip while buying a home which is asking about future plans. Do research about the area that you’ll buy your property in or ask your agent because real-estate agents are aware of any future plans that will happen in any area they’re selling property in because they use it as an advantage for the villa or apartment to increase its price. Future plans may be a hospital, bus station, or even a supermarket that is planning to open.