The client

Young first home buyers who were looking to purchase a modern and new style apartment. They were unsure how to navigate real estate agents, the industry jargon and didn’t want to be manipulated into paying more than they needed to.

They were currently renting and loved their current location so wanted to be as close by as possible.

What was most important to the client

Location - the suburb where they currently rented was exactly where they wanted to be.
A minimum of two bedroom, two bathroom and parking
Balcony that doesn’t look directly onto other apartments and has a level of privacy
Strata levies circa $1,000 per quarter
Great sized kitchen as they love to cook
Move in ready without the need for renovation

The search

Given the location preference of the brief, the search was focused on what two bed, two park, one car apartments existed in their current suburb. It was then a matter of prioritising those based on the other search criteria.

Once this list was narrowed down, then it was about focusing on which apartment owners may be open to selling. This included looking at:

Properties which had been listed for sale but not sold in the past two years
Properties with an upcoming lease expiry
Properties which were owned as an investment

Five weeks later, I had a hit. There was an owner who wanted to sell, but they themselves had not yet purchased and didn’t want to commit to a sale and end up with no where to go.

I inspected the property first and it felt like a great fit. I then took my clients to see the property and they agreed it felt right. The best part about the location was that the apartment was in the same complex as they were renting; they basically only had to move about 100m!

The property

Built in 2015, this was a large size strata complex built by the TOGA Group. The apartment is sub penthouse level with expansive views and allows for natural light throughout the apartment.

The apartment had one owner since it was built and is well maintained and cared for. There is open plan living as you enter and flowing onto the balcony. Then there is a separate hallway to the two bedrooms, plus a full size study which could also be used as a small third bedroom (has its own windows).

Many new builds in Sydney have building defects which need to be remediated and paid for. This can be really costly. The strata report identified the issues and the original developer, TOGA Group, was being very cooperative with the owners corporation (this is sadly quite rare). The two parties had agreed to scope of works, and TOGA Group was completely the works without further charge. Separately money was put aside for works that TOGA Group was not able to do.

If you want to buy modern then you will have defect risks. However, understanding the risks and potential it may have on you financially is what is actually important.

The outcome

As the current owner hadn’t yet purchased, they were a little reluctant at first to sell. The property was completely off market.

I structured up our offer to include a six month settlement period, where the owner could bring forward settlement at any point (basically as soon as they purchased they could give notice of an earlier settlement).

This combined with a price reflective of a two bed, two bath (remember what we bought was actually a 2.5/3 bed!), and we secured an off market exchange.

Learnings

If you are buying an apartment (whether new or old), there are always risks and issues. A single risk or issue is not the reason not to buy, otherwise, you’ll probably never find anything to buy. You need to understand the size of the issue, the likelihood it will materialise and the financial impact it would have on you. Only then can you make an informed decision if you want to proceed to make an offer.

Purchasing a modern apartment and understanding the strata risks