Are the bells and whistles always necessary?
Many modern developments these days come with a plethora of ‘lifestyle’ additions….brilliant roof gardens, well equipped gyms, pools , dining rooms, media rooms, lush lawns etc. As inviting as these facilities can be, they do come at a cost and a substantial cost, at that, in the form of strata fees and levies.
So are they always necessary?
To ensure one gets the best out of a property investment, historical performance will show, it is imperative to hold that investment for 7 plus years. In order to do that, serviceability and patience are required. Patience is of course something we can all learn and become better at, however if the budgets get stretched, we are often then forced to sell….being one of the main reasons investors fail. Therefore being aware of what effect rising strata fees can have on an investor's ability to hold that investment through thick and thin is vital. Those costs can often prevent an investor being able to invest again.
So if cash flow is king, one doesn’t need to invest in a project with all the bells and whistles to make a good ROI. Small sites without all those amenities are far easier to hold and, invariably, do very well by allowing investors to purchase again, and appeal to owner occupiers who equally prefer low strata fees with little chances of blowing out.
Keeping it simple is a good strategy.