Wondering whether you should consider buying an apartment as your first home in Australia? Let's find out!
When you decide to purchase your first home, several questions are racing your mind. Among all of them, the most important one is which type of house you should buy? A villa, house, or apartment has its benefits but an apartment will be your top pick; owing to a tight budget and a home in a prime location in the city. Even though owning an apartment is not quite a dream of Australian residents; the trend of buying an Apartment as your first home is catching up in recent years. This is due to the lack of affordable houses in the metropolitan area.
While an apartment life seems to be a cost-effective choice for you, living in an apartment has its demerits. Usually, apartments are built on less space and with neighbors moving all around, there is hardly any privacy than your own home. To help you evaluate the merits and downsides of buying an apartment as your first home in Australia, we have put down the pros of cons of apartment living. Let’s take a look at them one by one.
Also Read: 10 Mistakes of a Home Buyer and How to Avoid Them
Pros of buying an apartment as your first home
Stay within your budget
Even though the Australian property market is heating up in recent years, the average case of purchasing an apartment is far less than buying a house in a good location. Hence, if you are tight on your budget and don’t want to spend a lot on your first property purchase, investing in an apartment will be a viable option for you. This means you can be a house owner by spending less money and spending the other amount in investing somewhere else.
Purchase a home in a good location
If you go out looking for a well-furnished house with all the lifestyle options and lavish amenities in the main city or heavily populated area, you need to spend a huge amount of your savings. On the other hand, if you are open to purchasing an apartment, you will find a good one in the heart of the city furnished with lifestyle options while remaining within your budget. Reports say that there is more than a 50% difference in the price of purchasing a house and an apartment in the same location as any Australian city.
Also Read: Top 6 Tips For Buying Your First Investment Property
Rentvesting
Purchasing an apartment is also great for reinvesting which is catching popularity among new buyers. It helps you follow your current lifestyle and live in your current location and buy a currently affordable property. Later when you are successful in accumulating money, you can purchase your dream house. Fewer responsibilities and maintenance issues This is another big advantage of the apartment lifestyle that is mostly overlooked. When you decide to purchase and live in an apartment than a house, you don’t have to worry about maintenance and other responsibilities. For instance, you have to spend on yearly maintenance of the house as well as maintaining the driveway, garden, and more. On the other hand, the overall maintenance of the apartment block is looked after by the strata committee. You just have to pay your part of the fees to carry out the maintenance.
Also Read: 4 Important Key Points To Consider Before Investing In A property
Cons of buying an apartment in Australia
Not always a good investment option
Even though apartments are a good option if you have budget constraints and don’t want to spend a lot on maintenance; they may not prove to be a good investment option in a long run. Besides, if you are looking to buy a rental apartment, you should look for one that may draw more renters. Besides, you may get fewer investment returns in comparison to selling a house in the same location in the future.
Can feel cramped in a small space
Most of the apartments are built in small spaces and living in a cramped space may make you suffocated and distressed. So it is essential to see if there are any recreational spots nearby such as parks, malls, and others. You should also make sure that you have a balcony attached to your apartment to make a little difference in the lifestyle.
Less privacy
You don’t have privacy in your apartment as much as you get when you own your own separate house. This is because all your neighbors live nearby your apartment block. Due to this, you will have to bear noises from your neighbors. You also have to make sure that you do not disturb your neighbors when organizing a party at home.
