Older apartments can prove to be a gold mine for first time property investors according to Shane Kempton, CEO of Professionals Real Estate Group.
Mr Kempton said that during July and August property investors tend to flood the property market in line with the start of a new financial year.
“A large number of these investors are buying an investment property for the first time and many of them tend to buy new off the plan apartments based on high rental returns and tax depreciation benefits.
“While these new apartments can prove to be a great long term investment, first time investors should also look at opportunities in the established apartment market.
“Older apartments that are advertised for sale do not have the same level of marketing exposure as apartments in brand new developments so buyers are in a generally much stronger position to negotiate a good deal with individual sellers of established apartments.
“It many surprise many first time investors that they can even purchase older style apartments for a much lower price than similar sized apartments in new off the plan developments.
“These older apartments offer a very affordable entry point into well-established suburbs which has historically delivered sound rates of capital growth over the long term.
“Property buyers should consider buying an established apartment that is either located close to the river, ocean or city centre since these traditionally achieve the highest levels of capital and growth.
“These well located apartments are also in high demand by people wanting to rent a home and historically apartments near the city centre, river or coast have achieved high levels of rental growth.
“When buying an older apartment, property buyers can actually see what they are buying. This includes any views the apartment has to offer as well as the quality of the finished product.
“Now is a great time to buy an established apartment because there are now a large number of these homes for sale in prime locations with sellers now willing to negotiate on price with willing buyers,” he said.