First Home Buyers – Apartment vs House
First home buyers often start their journey facing a dilemma: choosing between an apartment and a house. Houses are often more sought after but even if that is your ultimate goal, it may be better to start with an apartment.
We’ll show you some reasons why you should consider investing in an apartment, rather than a house, as a first home buyer.
Five Reasons Why Apartments Are A Great Choice For A First Home
Appeal To More Buyers
Apartments are more affordable entry points into the housing market. The Domain House Price Report for June 2021 states that the median apartment price was just $609.642; whereas, for houses, it was $994,579.
For first home buyers on a smaller budget, or anyone looking to spend less on a property, an apartment is definitely a less costly option. Paying less for the home leaves extra money to put towards other priorities. The lower price also helps first home buyers hop on the property ladder sooner, as it takes less time to save a smaller deposit.
Another benefit of owning a unit is that the cost of building repairs, maintenance and insurance is shared. This brings three advantages:
1. Fewer additional costs
2. With good building management comes greater potential for higher future value
3. You don’t have to spend time mowing the lawn or tending to the garden
To learn more about similar costs you can avoid, contact our specialist mortgage brokers at 1300 889 743 or fill in our online assessment form to have them contact you.
Security varies from building to building. Having said that, it is usually better in apartments. There are usually several safeguards to bypass to get to your apartment door. Many houses do not offer such protection.
Apartments are popular among many types of buyers, including downsizers and investors. When you finally decide to sell your apartment, the target buying audience will be broader. This creates competition and drives the price higher.
When you buy a house, you buy just a house. But when you buy an apartment, you often get access to many other facilities as well.
Some apartments give you access to a whole host of facilities in your building complex. This could include a pool, gym, playground, tennis courts, and even a shared garden.
Learn more to get a clear understanding between buying an apartment and buying a home.
Why You Should Be Careful Before Investing In An Apartment
There are downsides to apartment ownership. If privacy is your priority, apartments might not be the most ideal choice. Also, one reason apartments are usually cheaper is because they’re often smaller. But they can be ideal for a young first home buyer couple or downsizers looking for something less costly.
Looking For Expert Assistance?
If you have made up your mind to purchase your first apartment, we can help you find your ideal lender, with the best mortgage rates. And if you’re still not sure, our Experts are here to analyse your situation and help you make the right decision.
Browse through 50+ lenders on our panel and find the one to suit your home loan needs the best.
Reach out to us on 1300 889 743 or fill in our online assessment form today to find out if you qualify.