Why Investing In Apartments Is The Right Choice For First Time Home Buyers?
For first time home buyers, each question they answer would then prompt ten more. So one of the first questions should be, “What sort of house are you searching for?”
Each property has its own set of advantages, but perhaps the most cost-effective and suitable is a trusty apartment. This type of property is less expensive, requires less maintenance, and even allows you to live in your desired location.
The type of home you choose reflects your personality, be it a city or a countryside explorer. For many years, most Australians have preferred a spacious property in a suburban setting.
However, an increasing percentage of youth, energetic retirees, and working couples prefer the features of elegant and cozy apartments closer to the city to a villa. This brings you back to the age-old discussion over whether one should be investing in apartments or houses.
To decide whether to buy an apartment or a house, you must first understand the need for purchasing a property. Is it a good investment? Are you aiming to increase your capital payback or bring in as much rent as feasible? Will an apartment suit your style of living better than a large house with a backyard?
Before you can get started on the financial retorts and then decide on a top-value home loan, you’ll need to figure out which home is best for you.
To find the right home for you, it’s essential to seek expertise like that of the Quarter Acre’s real estate team. Hence, before you dive into analyzing the property spectrum, here are a few key points to consider,
1. Affordable Investment Option
When it comes to owning cheap investment property, apartments have the upper hand in terms of affordability. Therefore, according to median property values, purchasing an apartment rather than a house can save you $100,000 or more on the cost of your first residence.
In addition, because higher-density residing is becoming more prevalent in capital cities, you may be able to save money on customs duties by purchasing off the plan. That would be more money in your pocket for a new sofa, vibrant indoor plants, and a fantastic housewarming gift.
The median home value in Newtown, an interior suburb of Sydney, is $998,000, while the average apartment price is $530,000. Similarly, the average house price in Melbourne’s urban core suburb of Richmond is $920,000, while the average unit price is $532,000.
Real estate investment in the city is not only cost-effective but also provides you with greater choices. Major cities like Melbourne and Sydney are currently experiencing a surge in new property developments. Hence, you end up saving money and getting a new apartment to boot.
2. Better Locations In The Same Budget
You can expect to pay a lot of money if you wish to live in an interior or beachside area with all the comforts and lifestyle perks that come with it. However, if you are willing to buy an apartment, you can reside in your perfect setting while staying within your financial plan.
Assume you’re eager to buy a home in Bondi Beach. According to average property prices, a house will cost around $3,440,000, while an apartment will cost approximately $1,285,000. That’s a vast difference!
On the flip side, a substantial majority of first-time purchasers may prefer to live near the heart of the cities to have many lifestyle advantages and be close to work, household, and peers. Moreover, due to the exorbitant cost of detached houses, owning rental property would be ideal for most people.
3. Higher Occupancy Rate
New apartment blocks are brimming with amenities. Pools, barbecue areas, well-equipped fitness centres, and even fast food joints are available. Even older apartment complexes have a lot to offer, including a sense of community, shared upkeep, and safety.
Medium to high-density living is built around activity centres, so you’ll have easier access to shops, amenities, late-night kebabs, and transportation. Hence apartments tend to have lower vacancy rates.
4. Shared Maintenance Costs
Another significant benefit of living in an apartment is that you will have minimal maintenance duties. While buying a house, you will be responsible for the interior and the outdoor space and any lawns.
When you live in apartments, maintenance is handled by a housing association committee, which you pay for with housing association fees. These typically cover the following:
- Maintenance of the building
- Insurance for houses
- Cleaning and upkeep of common areas
- Caretakers
- Water and electricity maintenance
5. More Convenient To Manage
When you are buying your first rental property, likely, it will not look the way you would like it to. It might be something as basic as the type of rug, but chances are you’ll have to renovate to make it feel like home.
However, you’ve just spent a significant amount of funds on your home, and your renovation funding is likely to be limited. This is another instance where apartments triumph. Your renovation money would go much further and have a greater impact if you have relatively small square footage.
When you own an apartment, you only have to care about the decor and your balcony. Apartments, as opposed to houses, are convenient to manage, giving you more time for family or catching up with things over the weekends.
Conclusion
In conclusion, apartments provide residents with minimal responsibilities associated with homeownership, such as real estate taxes and maintenance costs. Therefore, buying rental property proves to be a good option for someone who lacks enough income or savings to buy a home.
They’re also a great alternative for anyone unsure what turn their career path will take. For instance, if you investigate career relocation options, the versatility of an apartment is more appealing than the long-term impacts of a mortgage.
With so much on the plate to consider while deciding if apartments are the right fit, one can only imagine the hassle of hunting. Hence, a good property advisor firm like Quarter Acre can definitely help you make the right house investment.
