Mistakes People Make

Biggest mistakes people make when buying an apartment

According to Robert German, Sales Manager Beller Residential & Damon Krongold, Director of Beller Project Marketing

Robert German, Sales Manager Beller Residential, says:

“Melbourne’s shrinking apartment sizes will be a hot topic in Victorian Planning Minister Richard Wynne’s discussion paper on apartment design standards. 

It is believed that Mr Wynne’s proposal will address such issues as sunlight, natural ventilation, outdoor access and more, and these are all aspects that buyers need to take into account to avoid making costly mistakes when buying an apartment. The key aspect of the discussion paper, and the most controversial, is the possibility of legislation mandating minimum apartment size.

At Beller, we have been advising our clients for years against buying 'broom cupboard' apartments because it's a disaster when you are trying to sell. Now the government is looking to pass legislation to prevent building apartments smaller than 50 square metres.

Mr Wynne is essentially talking about buyers receiving value for money in the apartments they purchase. This is particularly important in today’s environment because, in a competitive apartment market, fundamentals become critical.

When buying, think carefully about how much you can afford and how much tolerance there is in your budget. Don’t forfeit important features such as a balcony or car park just to save a few thousand dollars at the beginning. The biggest mistake people make is letting price be the determining factor when buying a property.

Don’t buy for today; buy for tomorrow.”

Damon Krongold, Director of Beller Project Marketing continues:

“List what is important to you. How many bedrooms? Morning light or afternoon light? A well-equipped kitchen? Is a view important, bearing in mind that unless you face the water or a park, the odds are that, over time, you will get built out. Will you use the pool and gym or will the high owners’ corporation fees be a waste of money?

Look for a well-designed apartment that makes the most of the space. A long hallway in a two-bedroom apartment, for example, is wasted space. Ideally, space is maximised in the living area. Look for adequate storage inside and a storage cage. Good natural light and ventilation are essential.

Is it a mixed-use building? Is there a cafe or a restaurant at street level? This can be good or bad. It’s convenient if the development is in an area where it’s a bit of a walk to a cafe. However, check that there are adequate facilities for a food-handling tenancy. The last thing you want is cooking smells and rubbish-storage smells filtering up through the building. The contract should specify the nature of the permit granted to that tenancy. If not, ask the agent to supply details.

Don’t be put off by less picturesque streets. Some of the best capital growth can occur when the area grows up around you. Apartments in commercial or light industrial areas, and close to residential streets and amenities, often offer excellent value. The presence of apartments is usually an indicator that the area is being rezoned — and therefore well on the way to gentrification and growth. 

Car-parking is a factor that is changing over time. For some people, a car park is essential. The government is trying to wean us off car spaces and large developments in busy inner-city areas with good public transport are likely to have insufficient car parks, and we can see this becoming more common in the next five or 10 years. 

However, resale is a factor here. When you are selling, you are going to be competing against apartments with car parking. It may be cheaper to buy an apartment without a car park, but then the apartment may take a lot longer to sell.

Remember, if you compromise when you buy, expect to have to compromise when you sell.”