Do you have your sights set on renovating an apartment? Buying a dated apartment and giving it a fresh look is a smart way to gain an affordable entry point into the property market. It's a strategy used by home renovators to make some fast money and by investors to increase the value of their portfolio.
Renovating an apartment, compared to renovating a house, comes with a different set of challenges and opportunities. So, before you dip your toe in the water, you need to be aware of what's involved.
Research
Identifying which type of properties have the strongest demand in a given suburb before buying and embarking on a renovation project is crucial. An oversupply of one-bedroom apartments in a certain area should make you wary of purchasing anything similar. However, if two-bedroom apartments are in demand, then establish what type of renovations will appeal to prospective purchasers. This can be very easily achieved through phone calls to the local real estate agents.
Apartments are subject to specialised design and planning regulations with various levels of local governance. There are strict rules around noise and fire separation and approvals are generally required before commencement.
Body corporate
Be aware of strata laws. This is where an apartment is managed by a body corporate, which owns certain structural elements - such as foyers, gyms, pools, carparks and gardens and services like lifts and lighting in the common areas. If you want to renovate, a body corporate can be a huge hurdle to overcome. You may need to seek approval to do anything at all. It all depends on how conservative the body corporate is. Researching your commitments here before buying is essential.
Property report
This story is from the June 2022 edition of Money Magazine Australia.
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This story is from the June 2022 edition of Money Magazine Australia.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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