Take the Brisbane unit and apartment market for example. Over the past 2 years we have heard about nothing but unit oversupply within the Brisbane market, and this has had a downward influence on the price point of some properties.
But is now the bottom of the market? And time to buy?
I think we are getting pretty close. 2017 will be known as the year of apartments, with more settling in that one year then any other in the last 10 years or so. With this oversupply comes all the pitfalls of product saturation such as price deflation and rental vacancy. How ever signs are emerging within the unit market that could mean now is the time to buy.
Recently the team at Hot Property Buyers Agency purchased a 3 bed 2 bath 2 car unit within a boutique complex, walking distance to the popular Oxford Street in blue chip Bulimba.
The property was purchased for the low to mid $800’s, which is great buying considering there were sales last year in the same building of high $800’s – early $900’s. This value proposition means that our client could afford a property that she otherwise wouldn’t have been able to purchase, and she got into a location that she loved, but was sure she could afford.
Historically I have been known not to worry about timing the market, as I believe good property, well brought in any market will do well in the long term. But in this case as long as you stick to the investment fundamentals when it comes to unit and apartment buying, 2018 might be the year for great buying opportunities.
Tips for Unit Buying
- Keep it blue chip – look at expensive suburbs where houses are unaffordable, this way units will always be an affordable option for both renters and buyers.
- Size matters – the larger the unit and the more car parking you have the better. Remember that a difference of 10m2 from one apartment to the next can be dramatic, which is about the same size as your average bedroom.
- Body corps – look out for high body Corp fees. I have seen complexes with fees of over $9000 p/a. Try and stay around the 3-5,000 range or less if possible.
Remember not all properties are created equal, and having the time and skills to research is important, but also having access to off market or pre-market opportunities can be very valuable. This is where a Buyers Agent could assist your search for the right property by helping leverage your time and find opportunities that are not available to the general market.