Deciding to take the leap into home ownership is one that can consume a great deal of your thoughts and headspace. Buying your first home used to mean purchasing a 3 bedroom house, with a backyard located in one of the fringe suburbs. But times have changed and so has the type of home that buyers are purchasing for their first investment into home ownership.
Whilst a brick and tile beauty has its positive points there are many great points for making that first home purchase an apartment. Let’s look at some of the reasons an apartment could be just what you are after:
With property prices at an all-time high it is time to think outside the square on what you can purchase that’s affordable. An apartment purchase may lack the yard and garage of a house purchase but you will usually be able to purchase in a premium suburb that may have meant it was unaffordable if you were trying to buy a house.
For example, the median 2 Bedroom house price for Mermaid Beach is $1,150,000 versus the median 2 Bedroom apartment price for the same suburb being $417,000. So you can see that for the same location with same options for transport, shops, cafes, restaurant and all those other lifestyle choices, an apartment is more affordable and could represent the difference between entering the market or not.
2. Low Maintenance
Many first home buyers that purchase a traditional brick and tile home on the 500m2 block in the suburbs underestimate how long it will take them to maintain a property. They soon realise after they have moved in that a great deal of their spare time is spent mowing the lawn, cleaning out the gutters, maintaining gardens, cleaning decks, driveways or pathways, scrubbing outside windows and that’s just the outside of the home. Spending all your spare time working on the maintenance around your home can be tiring and the novelty of home ownership can soon wear off.
Purchasing an apartment usually means that you only have to maintain the inside of your home and frees up your spare time for doing the things you love. This is also true when it comes to travel; purchasing something that is lock up and leave is perfect for when it comes time to go exploring.
3. Stretching Your Dollar
Whether you are decorating, renovating or just maintaining, apartment living usually means your dollar is going to go further. The average house size in Australia in 2017 is 231m2 so using the example of decorating, that is a lot of rooms and areas that need filling with furniture and decor which can be expensive. Even the day to day expenses of running a household will be higher in a freestanding home versus an apartment.
An off the plan or new apartment purchase will mean that it is many years before you need to renovate or think about upgrading kitchens and bathrooms. And even when you do renovate an apartment it is usually cheaper as everything is slightly smaller or more compact.
4. Investment Property Potential
It is always great to have options and an apartment purchase may be the perfect investment for those looking to start a property portfolio. There is the option to live in it, holiday lease depending on the location, executive leasing or permanent leasing. If you purchase with the view to lease it out there are tax breaks that can offset your income which make it an attractive investment. There is also the long term capital growth of the area, which over time may net you a sizeable chunk of money when you finally sell.
Purchasing an apartment for your first property investment certainly has its benefits and could be just the purchase you need to consider to get your foot in the market. Like anything, you will need to do your research and seek professional advice to work out what is best for your situation. Just think of all the extra time you will have not cleaning leaves out of gutters and washing driveways!