So a few tips for investors looking to purchase in a boutique development are:
- Don’t be sold on the views entirely. Sure they’re important when looking developments, but ensure the internal views are just as stunning. Go for an apartment complex that is well-appointed with a quality fit-out, because if you’re an investor wanting to get into the corporate rental market, then quality is what these people and their companies are looking for.
- Ensure the size of the complex is not too large. As mentioned, go for a development that has no more than 40 apartments. I’d actually aim for no more than 20 apartments in the complex.
- Look closely at the architectural design and layout of the block. What’s trendy now certainly won’t be in 10 years time, so the design needs to be contemporary without being ‘out there’.
- Check out what the developer has built previously as that will give you an indication of the quality of work they’re producing. I’ve seen some buildings that look amazing, but 10 years down the track they’re already looking tired with the paint peeling and concrete cancer peeking through the block work. So go for quality internally and externally.
- And the old saying, 'location, location, location' really does apply here. Look at what’s around the development or what is going to be built around it in the future.
- And finally, do your research – what type of people are renting/purchasing apartments? What’s the trend in the city you’re looking at investing in, are people still wanting to live in the city centre or on the CBD fringe? What is driving the apartment developments in the area? Because whatever the industry is that’s driving it, that industry needs to be sustainable.