Revealed: The five checks you must do before snapping up a bargain apartment during the pandemic if you want to make money in the future

New homeowners looking to buy a cheap apartment during the pandemic are being warned to look out for key factors that will help them to cash in later. 

Economist Andrew Wilson says it's important not just to focus on price and that inner city regions are often weak contenders when it comes to picking up a bargain, according to realestate.com.au. 

He said apartments were 'investor stock' and urged buyers to consider a range of factors when they look for a new flat.

Homeowners should consider low-density regions and weigh up the benefits of older apartments and smaller blocks. 

Due to the restriction on international travel amid the ongoing coronavirus crisis, 'investor rentals' aimed at students, travellers and hospitality workers are coming on the market at bargain prices

Homeowners are urged to consider the location, conduct due diligence by checking for issues such as combustible cladding and weigh up the benefits of older apartments and smaller blocks. (Pictured: apartment with combustible cladding from NSW register)

1) What to consider during property selection   

Buyer’s agent Michelle May said it is important to go for a property that offers quality over size and it fits in with a 'five-year life plan'.

She said: 'You’re better off going for a good-sized one-bedder than a tiny two-bedder but I always recommend to my clients to buy with the future in mind. 

'Many young couples who buy apartments need to make sure they have that extra space for when they decide to start a family. A second bedroom is going to make a world of difference.' 

She also said buyers must also consider the location and aspects of the home which will never change, unlike fittings and decorative features which can always be updated. 

The ideal aspects are north or east facing because they receive the most direct sunlight during the day, especially in Winter when the sun is at its lowest.  

Buyer's agent Michelle May warned prospective buyers to stay away from properties on 'yellow roads' which is a reference to a yellow road on Google Maps which indicates higher volumes of traffic

2) Is the apartment on a yellow road? 

Ms May warned prospective buyers to stay away from properties on 'yellow roads' which is a reference to a yellow road on Google Maps which indicates higher volumes of traffic. 

'Properties on main roads are also the first to drop in price when the market turns, from a practical point of view, you want to be able to open your windows and not get noise and car fumes,' she said. 

3) How to compare a small or large block 

There are benefits for both styles of properties but apartment blocks in low density suburbs tend to retain their value and attract buyers when it is time to sell. 

Lower density zones are intended for housing that includes open space such as recreation and wildlife parks and do not allow large industrial complexes.

Units in these suburbs with easy access to public transport and local schools hold their value well and there is a stronger underlying demand. 

Apartment blocks in low density suburbs tend to retain their value and attract buyers when it is time to sell

Ms May said another positive is that smaller buildings mean a single vote on strata committees also count for more.  

The strata committee is made up of unit owners and governs the day-to-day running of the complex.  

'Large apartment buildings with amenities like gyms needed to be considered with caution,' she added. 

'The extra facilities tended to be expensive and were only worth it for those who were confident they would use them regularly.' 

4) Older properties versus new 

Large new apartment complexes can look promising, filled with new appliances and shiny surfaces. 

But Ms May said older apartments are often a safer bet. 

'I recommend buying only something that is at least five-years-old as the building will have had time to settle,' Ms May said. 

This will provide time for any structural issues to appears such as large cracks in the concrete.

Older apartments often provide a more generous floor plan as well as double-brick insulation to regulate the temperature.

The positives for a new flat is they often come with lifts, a concierge service, swimming pool, gym and video intercoms for security. 

Ms May recommend buying an apartment that is at least five-years-old as the building will have had time to settle 

5) Due diligence is vital  

Ms May said due diligence was particularly important for unit buyers as there were often more factors to consider than with houses.

'You need to know the building was constructed properly and has no building defects but also runs effectively with an engaged strata committee,' she added. 

A good place to start is the strata report which will tell buyers who the current owner is, what the standard levies and charges are as well as any additional planned upgrades in the future. 

It will also provide vital information on fire safety requirements, work health and safety obligations and asbestos management.  

An important check for any apartment is has it been cleared for combustible aluminium composite cladding - the cause of the fatal Grenfell Towers fire in London in 2017.