Looking to purchase your first property? Here are some reasons why an apartment could be a better first home than a house.
Apartments make inner city living affordable
If you want to be close to the heart of the city, an apartment is by far the more affordable first home option.
In Newtown, an inner city suburb in Sydney, the median house price is $998,000 while the median apartment price is $530,000. Similarly, in Melbourne’s inner city suburb of Richmond, the median house price comes to $920,000 while median unit price is $532,000.
Not only are apartments more affordable in the city, but you are also spoilt for choice: major cities such as Melbourne and Sydney are currently in a boom of new property developments. You end up saving money and you’ll be able to get a brand new apartment to boot.
It’s low maintenance
Mowing the lawn? Pruning hedges? Washing the gutters? These are just some of the tasks that become a regular staple in your life if you own a house. Your property may increase in value over the years, but with that comes all the hours of labour you’ll invest in maintaining it.
On the other hand, when you own an apartment the only thing you need to worry about is the interior and your balcony. Compared to houses, apartments are most definitely low maintenance, leaving you with more time to spend time with family or catch up on work over the weekends.
Renovation: More for less
When you buy your first property, it’s likely that it won’t look the way you want it to. It could be something as simple as the type of carpet, but chances are you will need to do some renovating to make it feel more like home.
However, you’ve just spent a lot of money purchasing your house and your renovation budget is probably looking slim. This is where apartments win out again. With a smaller square footage, your renovation funds can go much further and make more of an impact.
Investment property potential
The reality is your first home probably won’t be your dream home or the last property purchase you will make. With that in mind, when you’re buying your first home it’s important to consider its possible value in the future.
Not only are apartments more affordable, but buying one in an inner-city suburb can be a long-term investment, either as a source of rental income or as a property that will go up in value.
Kelly Teng, Domain