Quest for affordable investment could end with Canberra city apartments

28 West Row (Quest Apartments)
$345,000-$395,000
1 bedroom, 1 bathroom

There are not too many options to invest in a one-bedroom apartment in the central city from an affordable $345,000 – particularly when it’s secured by a long-term lease to a quality operator.

But that’s what’s on offer in the historic Melbourne Building, with its distinctive colonades, that dominates the corner of Northbourne Avenue and West Row in the city.

Greg Henderson of One Agency (Crane Properties) has four, one-bedroom apartments for sale in a first-floor hotel operated by Quest Canberra.

He says Quest has been welcoming guests in the heritage building for about 10 years and offered 37 studio, one-bedroom and two-bedroom apartments.

“I’ve got just four apartments available now, priced between $345,000 and $395,000,” Henderson says.

The apartments feature fully equipped kitchens and laundry facilities, as well as separate lounge and dining areas. They are popular with business visitors and tourists and enjoy high occupancy levels.

Henderson says it would be hard to find a better location with the building’s proximity to Canberra’s retail centre, central business district, the lake and Parliament House.

“It’s a great opportunity to invest in a reliable asset that’s situated in such a blue-chip location and run by a proven operator.”

Henderson says that apartments were owned by investors with many of them held in self-managed superannuation funds.

“The advantage of investments like this is their relatively affordable entry price, a secure long-term lease, and somebody else to take care of the operation and maintenance. It’s a hands-off investment,” he says.

“Every month, there’s a cheque from Quest based on the lease agreement and that’s not affected by whether the apartment was occupied or not.

“And returns are indexed to annual movements in the market,” Henderson says.

There are no hidden management fees. Investors only pay body corporate costs, rates and for capital maintenance. Quest is responsible for insurance costs and those associated with ongoing apartment maintenance.

Henderson says the returns on investment are solid in both yield and capital growth.

“A studio apartment that was bought in 2013 for around $318,000 sold two years later for $390,000 – that’s a strong return,” he says.

“Investors with experience in this sector quickly become converts to this product. They like the security of the lease, the hassle-free operation and the performance.

“I’d love to have more to sell, but once investors understand the appeal, they tend to be tightly held,” Henderson says.

 To inspect, contact Greg Henderson, One Agency (Crane Properties), 0404 880 834 

What this means for you: The apartments offer prospective buyers a reliable, long-term investment at an affordable price point.