Quick Hits #9 - Before you buy an apartment... - Property, Australia's Favourite Obsession

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Quick Hits #9 - Before you buy an apartment...

In this Quick Hits Episode Jeremy is joined by Omar Moujalli from Examine Property to discuss the "5 Critical Consideration BEFORE you buy an apartment". These considerations include:

Demographics - This is where your research should start! It is imperative that the type of property that you are considering matches the demographics of the area. The expectation and demands will be very different between white-collar "DINK" professionals without kids and that of the demands from a blue-collar family that include kids! Are 1, 2 or 3 beds in demand? Is a study required?

Matching your property the demographic demands can mean the difference between a great performing property and one that has serial vacancy's forever requiring you to reduce your rent in an effort to attract a tenant!

Supply and Demand -The greater the supply the greater your competition! Competition to attract renters and even eventually competition to try and attract a buyer. The greater the demand for your property the higher will be the rent you will be able to charge.

Understanding the demand and supply metrics of both your chosen location and possible tenants can avert possible financial heartbreak.

Proximity to Amenities (infrastructure & Jobs) -Location. Location. Location! Tenants want convenience. Tenants will pay a premium for convenience. Convenience to transportation, entertainment, jobs, lifestyle assets as well as beaches and parks. Shopping, hospitals and medical centres just to name a few. Under the 5 Essential Drivers of Property and you will understand how your proximity to amenities WILL manifest back into higher desirability and hence higher prices.

Building & layout - The quality of your building can not be overstated. Construction quality, the finishes will have a major impact as to both the desirability as well as the cost of ongoing maintenance.

And never underestimate the impact the layout of an apartment can have.

Cost and cash flow- The financial consideration is the price of the apartment and its expected cash flow. Never overpay. Never pay tomorrow's price today for an apartment. Always review the strata costs and never neglect to review the strata minutes to ensure there is NO hidden issues potentially lurking in the future. Always have a professional review these numbers so as to ensure you don’t face any nasty shocks.

For further information you can get in touch with Omar using any of the links below:

https://www.instagram.com/examineproperty/

 https://www.facebook.com/pg/ExamineProperty/posts/?ref=page_internal

 or on Linkedin at https://tinyurl.com/yyqjeeuw

At PAFO we'd love to help and can be reached at the following locations:

https://www.PAFO.com.au

https://www.facebook.com/pafopod

https://www.instagram.com/pafopod/

About the Podcast

Show artwork for Property, Australia's Favourite Obsession
Property, Australia's Favourite Obsession
We can't get away from it - everybody has a connection to property, as a tenant, a homeowner or as a landlord; hence our obsession with it!

About your host

Profile picture for Jeremy Calnan

Jeremy Calnan

I just love investments and I’m obsessed with property.

Ever since I was a young kid and mum used to take me along to open inspections, I’ve had a keen interest in property.

Discussion around our kitchen table used to regularly include the topic of property, I guess you could say it’s in my genes.

Having worked as an investment professional since the early 1990’s the GFC prompted me to ask the question “What causes the share market to crash at regular intervals”.

I found the answer to this question in the study of land economics, which surprised me, until I really thought about it, and then I couldn’t believe I hadn’t seen it sooner!

Once I understood land economics and the true drivers of the property market, I was provided with a unique insight into how property interacts with the credit and share markets.

More importantly, it brought me back to my obsession with property!

I live in the beautiful city of Adelaide with my wife Alice and my spare time is spent watching my two sons playing AFL football or just relaxing with family and friends.

Professionally I’m a director of Calnan Flack an Investment, Financial Advice and Education Company with my time divided between funds management and the creation of financial education for clients.

Jeremy Calnan (AR 244353) and Calnan Flack Pty Ltd (AR 446976) are Authorised Representatives of PGW Financial Services Pty Ltd – AFSL 384713.

See calnanflack.com for more information.