Three ways to maximise capital gains

To get the most out of your investment property, it is important to buy an apartment that promises good capital gains. However, finding an apartment that you are confident will increase in value is not always easy. To give you peace-of-mind when buying your new investment property be sure to investigate the quality of the building and its location, the owners corporation managing the building and choose a real estate agent to manage your property with care and who knows the building well.

1. A quality tower in a good location

The CBD is a great place to invest if you buy in the right tower. Savvy investors enjoy low vacancy rates, good rental yields and most importantly good capital gains.

Melbourne has a strong rental market, made up almost entirely of university students from overseas, young professionals and young independents. Therefore buying in a tower that appeals to the market is vital.

Towers that offer high levels of resident amenity and are located close to public transport and the universities are far more likely to deliver you good rental returns and capital gains. Melcorp have seen values increase in Zen apartments, where we manage a significant number of listings, by over 5% p/a since 2012 with a vacancy rate of less than 1%. Zen is complete with two levels of resident amenity including indoor/outdoor dining and BBQ facilities, pool, gym and tennis court. It is located next to the Queen Victoria Market and only minutes from RMIT and Melbourne University.

2. Owners Corporation Management

It is simply not enough to seek low body corporate fees.

A good owners corporation will protect the value of your asset into the future.

They will ensure you do not have unexpected large building maintenance payments. Your body corporate fees should cover the majority of the upkeep of the building’s common areas. A quality owners corporation will also ensure the building remains tidy and will upkeep the common areas of the tower to ensure values within the tower remain high and your property continues to increase in value.

3. The right real estate agent

Once you have bought your apartment, it is imperative to appoint a quality real estate agent. An agent who manages a number of apartments within a tower is a great place to start, as they have an vested interest in ensuring rental prices are consistent and the apartments are well maintained by tenants. This will help to keep values within the tower up and in turn help to increase your property’s value. The same applies when selling your property.

An agent with intimate building knowledge and experience selling in the local area will help to ensure that your apartment is not undersold, maximising your capital gains.

An agent that has a number of apartments within the tower will be highly tuned to the target market and be well aware of the features and price of properties previously sold in the tower, ensuring your property is not undervalued and is marketed to the right people.

Melcorp Property have managed the majority of listings in a number of quality CBD and inner-Melbourne apartment towers for a number of years including Verve, Milano, Prima Pearl and Abode318. In fact, we have dedicated offices set up in many of these towers to ensure we are offering the most dedicated service possible to our clients. We have seen property values consistently increase in properties that we have managed and sold across all towers.

To speak to a sales agent about your next investment property, call Melcorp on 9663 1117 or email and a member of a sales team will be in touch. 

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