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The
Propertybuyer

Podcast

Hear the latest weekly insights into the property market via podcast by Rich Harvey, CEO and founder of Propertybuyer.

 
Fri 14 Jun '24 with Rich Harvey Tax Effective Property Investment Strategies
 
 
Fri 24 May '24 with Rich Harvey Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24 with Rich Harvey Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24 with Rich Harvey How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24 with Rich Harvey Why Invest in Melbourne?
 
 
Mon 26 Feb '24 with Rich Harvey Sydney’s Inner West – Hotspots and Outlook for 2024
 

 

Listen to many more
podcasts on our
Podcasts page.

 
 
 

Propertybuyer Blog
Property advice, market updates & more

 

Looking high and low for investment opportunities

July 8, 2014 / Written by Rich Harvey

 

By Rich Harvey, CEO, propertybuyer.com.au

Thinking about investing in high-rise apartment units? You may want to think again.

Not all apartments are created equal, and it's up to investors to determine which type of units make the most sense for them. While the gleaming glass of high-rise apartment buildings may get you thinking about investing in a luxury penthouse, it's important to weigh up your options first.

High-rise

Many high-rise apartment blocks are in high demand throughout the country, and one look at the skyline makes it easy to see why. Who wouldn't want a glorious view in the heart of the city?

At the same time, it's important to remember that demand doesn't always translate to high returns for landlords renting out a property.

First, high demand has led to high-rise apartments going up everywhere, meaning greater competition with other landlords.

Next you have to consider how such buildings will affect your bottom line when it comes to corporate body fees. The larger the building, the more shared spaces there will likely be. In turn, this can lead to higher fees for the maintenance of these areas.

Even the glamorous amenities that inspire demand from consumers can count against you. A pool and gym may mean a larger pool of potential tenants, but it also likely means higher strata costs for you.

Low-rise

A low-rise apartment complex may not be able to compete with high-rises when it comes to views, they do provide investors a number of advantages.

First and foremost, it can be easier to obtain financing for smaller apartment blocks. Some lenders will put restrictions on loans based on the size of an apartment complex. If too many units are in the development, you may find yourself with stricter loan-to-value ratio requirements.

Additionally, the strata costs are typically lower for low-rise apartment complexes, as there's less space that needs to be maintained.

Which type is right for you will come down to a number of factors, including the type of investment you're looking to make, as well as where it's located. Keep in mind, however, that a qualified buyers agent can help you select the right unit for your needs no matter your strategy or location.

The Propertybuyer
Podcast

 
Fri 14 Jun '24
with Rich Harvey
Tax Effective Property Investment Strategies
 
 
Fri 24 May '24
with Rich Harvey
Granny Flats: Boost Your Yields & Faster Mortgage Repayments
 
 
Fri 3 May '24
with Rich Harvey
Unpacking the Northern Beaches with Incredible Agents
 
 
Fri 29 Mar '24
with Rich Harvey
How to build a $7 Million Property Portfolio from scratch
 
 
Sat 16 Mar '24
with Rich Harvey
Why Invest in Melbourne?
 
 
Mon 26 Feb '24
with Rich Harvey
Sydney’s Inner West – Hotspots and Outlook for 2024
 

 

Listen to many more
podcasts on our
Podcasts page.