First time buyers may be unsure if they should buy a house or an apartment, with the choice coming down to your finances, property goals and location preference. Some people will choose to buy an apartment in the city for the convenience, while others will opt to purchase a spacious property in the suburbs.
Both houses and apartments have their pros and cons, which we will outline to help you make an informed decision when you decide to purchase.
Purchasing a House
- Floor Space: A house will provide you with more than enough space to live comfortably when compared to your average apartment.
- Outdoor Space: Whether you would like to have a front garden, a back garden or an outdoor entertainment area, a house will be able to provide you with the space you need to transform your outdoor area into whatever you would like it to be.
- Privacy: Living in a home means you won’t be wall to wall with your neighbour, reducing your chances of having to hear whatever they may be doing and vice versa.
- Pets: Although living with a pet isn’t strictly banned from all apartments, there is a chance that an apartment complex will not allow pets. This makes looking for a house to purchase easier than an apartment for pet lovers.
- Flexibility: Possibly the best benefit of them all, owning your own house means you can pretty much do anything you want to your house. Besides anything prevented by council and building regulations, you are free to renovate the property as you please.
- Maintenance: All of the flexibility that comes with houses comes with the price of maintenance. Mowing grass, trimming trees and cleaning gutters are prime examples of regular maintenance required to keep your property presentable. If you love this kind of labour then there’s no problem but it’s something to consider if you don’t have the time to do it, or if you are a low maintenance type of person.
- Expenses: Owning a house will generally cost more money to furnish as the spaces are bigger and fit more things. Air conditioning will also cost more to heat or cool larger rooms, adding to the hidden costs.
Purchasing an Apartment
- Benefits & Convenience: Apartment complexes can provide its residents with a wide variety of benefits, from reception assistance to fitness facilities. The location of the complex itself is a convenient benefit if you find yourself in the city more often than in the suburbs.
- Low Maintenance: Not only are there less things to worry about maintaining in general, some things may be covered by the corporation that owns the building.
- Affordability: There are always going to be exceptions, but apartments are on average cheaper than buying a house meaning you’ll generally need to come up with a smaller deposit. If you are looking for an investment property to rent, think about what you pay for the property and not just the potential rent money you can get.
- Ownership: Despite owning your apartment, you will be subjected to the rules set by the owner of the building. You may have to seek approval if you would like to make any renovations as well.
- Neighbours: You may find you will have a lack of privacy in an apartment, being worried that nearby tenants can hear your conversations or that you can hear them when you don’t want to.
- Space: An apartment won’t be able to provide you with the same sized living spaces that a house can.
- Fees: There may be maintenance fees that are easily overlooked when living in an apartment. Make sure to look into them so you can add them to the final costs.
Depending on the type of property you buy will change the types of available home finance available. Speak with our local Melbourne mortgage broking team to find out the options available for your situation.