Value of a lift (Sydney Inner West)

What do people consider the value of a lift to be? Suppose there are two identical apartments, both on the second floor, one has lift access and the other does not. Strata fees are slightly higher on the apartment with a lift.

 

Need more info.
How many levels are the buildings?
Are the buildings of similar vintage?
Are they both 3 levels?
How many apartments in each building?
How much money does the sinking fund of each building have?

Normal day to day operation, people like lifts. It opens the apartment up to a wider pool of potential tenants. But if a lift breaks down, it costs a lot to replace. Like $125k. We had to replace one in an apartment building I owned in. It also requires maintenance.

By the way, I think capital growth is about the same in both, but since one without a lift tends to be 3 levels high at most, it may actually have better general capital growth than the other as the building (which will often be more than 3 levels high) as the non - lift one has a larger land value. If a developer wants to buy your building you could do very well out of it.

Of course, you have to think about the general rentability of the apartment. In Sydney right now, there wouldn't be too much difficulty in finding tenants for either property in the Inner West. But tenants would tend to favour the one with a lift/be willing to pay a bit more (maybe $20-$30 a week) if they had a choice.

 

> How many levels are the buildings?
3
> How many apartments in each building?
25
> How much money does the sinking fund of each building have?
It's the same building.

I value the lift at about 10k but an agent is telling me it is worth more. Just wondering what everyone else thinks.

 

Ahhh. So I'd like to know. Why does one have lift access and not the other?

 

There is one lift well accessing the under story car park, but a few blocks of apartments on the site.

 

Ok... I think the lift benefits the one with the access but is a negative for the other without as you hardly get the benefit of the lift but still pay for its maintenance. And tenants (and I dare say, buyers) will favour the one with the lift in this circumstance.

Question... so the entire complex has how many units? More than say 50, then it's definitely not a boutique block.

 

The complex has around 25 units.

 

Confused... does the whole strata complex consist of around 25 units?
You wrote this:

 

In a 3 story building.....buy the one without the lift.

The costs in your strata fees will be dramatically higher with an elevator.

Its like a pool/gym.......unless its spread over several hundred apartments - DONT DO IT

 

It's pretty hard to say 'a lift is worth $10k' or put an exact figure on it.

Ground floor - it's a negative because they will be paying for it without using it
First floor - slight positive but walking up one flight of stairs isn't a big deal anyway
Second floor - definitely a positive
Third floor - essential

 

But... Our rule of thumb here in Sydney is to never buy in a complex with several hundred other apartments.
My thought in this circumstance is that the one without the lift is also paying for it (same strata if I understand the OP correctly), so in that case out of the 2 apartments i'd choose the one with the lift.

 

Agree with this.

 

If the one without a lift was 10k cheaper would you pick it? Or 20k cheaper?

It's a small complex, with three blocks of eight apartments.

 

Having a lift or not having one may be the difference between 1-2 weeks extra vacancy. That may not sound material however if you are opening up your pool of potential tenants by an extra 5-10% of renters (aged, parents with kids, accessibility issues etc), then unless you're on a ground floor, your out of their market.

 

If the apartment was on the ground or second floor i'd buy the one with no lift even if it was the same price (all else being equal) due to the risk of repairs & ass. costs

I'd always choose the smallest block of apartments & get more land content.

 

If it is the same strata (not split between those serviced by the lift and those not) in which your strata levies are likely the be the same, then I would go for the top floor. Advantage is that there is no one above you. Maybe a bit more sun etc and no stairs to negotiate.

 

I'd go for the one with the lift... its the same complex.

 

Yes, same complex. So you would go for the one with the lift even if it is 50k extra? Say, 850000 vs 900000?

 

I wouldn't spend 850k on an inner west IP unit. Not at the current moment.

Someone else might though.
Sorry it's not a very helpful response.

 

It will take a lot of additional lost $ vacancy to make up the price difference.