Inner-City Apartments – Exiting Can Be A Problem
For Investors or Owner Occupiers that have entered into the Inner-City Apartment market(s) (that is, Southbank & Docklands, Darling Harbour & Sydney City, or Brisbane City), exiting can be a problem.
Competition is Abundant for these Apartments
We have had numerous clients in this sector that have held property for anywhere from 5-10 years, and in that period have seen an enormous amount of newly completed apartments come onto the market. And there are more to come … Capital appreciation therefore has been nominal to negative in the majority of cases.
This means competition when you want to sell! A lot of competition!
Investors in this sector, as we have experienced, are often offshore investors, who typically want new properties – clean, fresh, bright – with nothing needing to be done. This does not necessarily preclude your 8 year old apartment from being purchased, but what it does tell you, is that your property needs to be presented to its absolute maximum potential, to get the sale.
We have had many clients who’s apartments have been used as student style accommodation while family members are studying, or as rentals, or for family and friends to use when in the city. On practically every occasion, these apartments present tired, in desperate need of a paint and maintenance & repairs, and are poorly furnished.
Presenting the Apartment at its Best
In order for your property to be attractive to a potential buyer, particularly so in this market, it is absolutely imperative in our opinion, that there is new carpet, fresh paint, kitchen and bathrooms function properly, and all is sparkling clean. You cannot present a property in this market, with damaged kitchen doors, a broken splashback, dirty carpet or taps that are constantly dripping.
Spending $3-$10,000 in maintenance & repairs is essential, and spending an extra $5,000 for staged furniture, is also a MUST! If your budget can’t afford it – then make it work – borrow the money from family, whatever – this has to be done. If there is equity in the apartment, then we may be able to help.
The volume of apartments on offer in these inner-city areas, means potential Buyers can simply walk down the hall to anther apartment on offer. You can also be sure there is one two floors up, several next door and also across the road. You cannot allow potential buyers to look elsewhere, and grabbing a qualified Buyer – fast – can also be key.
We have talked about using the right Sales Agent – as not all Agents are the same (refer our other blogs).
We offer our services to review your current circumstances, your wants and needs, and based on our extensive experience, can review and represent your viable options. We are always happy to spend 15-30 minutes to discuss your matter (M | 0417 099 807 / P | 1300 732 040).
Craig Garbler, Founder