When it comes to choosing between a house and an apartment, the answer depends on your financial circumstances. However, if you have the means to choose, there are certain factors that can guide your decision-making process.
To assist you in making an informed choice, we have outlined the benefits and drawbacks of buying a house or an apartment.
Benefits of Buying a House:
A house is considered a status symbol in many cultures, providing a sense of security and peace of mind.
With council approval, you have the freedom to level and redevelop the land, making a house a potentially stronger long- term investment. Alternatively, you can subdivide the property or add a granny flat, offering strategic choices.
Land appreciates in value faster than structures, making houses likely to provide better returns over time compared to apartments.
Houses often come with gardens or backyards, which can be a lifestyle advantage for families or gardening enthusiasts.
More space in a house allows for accommodating guests and providing room for a growing family.
Advantages of Buying an Apartment:
Apartments are generally more affordable to purchase, live in, and maintain. The smaller space results in lower energy consumption for heating and cooling, and as a resident, you are not responsible for maintaining the grounds.
Apartments offer enhanced security through controlled building access and parking, along with the comfort of having neighbours nearby.
Many apartment complexes provide shared amenities such as pools and gyms, which would otherwise be costly to maintain individually. This convenience comes at a slightly higher monthly strata fee.
If you have a specific suburb in mind, buying an apartment can be a more feasible option for entering that area.
Apartments are easier to lock up and leave, reducing the need for house sitters when you’re away.
Apartments often offer proximity to amenities like public transport, shops, and restaurants.
Drawbacks of Buying a House:
Houses require time and effort to maintain, including both the interior space and the yard or garden.
Compared to apartments, houses are generally less secure and more prone to break-ins due to their isolated nature and multiple entry points. Additional security measures may be necessary.
Loan repayments for a house tend to be higher than those for an apartment, potentially stretching your financial limits.
Disadvantages of Buying an Apartment:
Living in an apartment complex means adhering to rules and restrictions regarding home modifications, and some complexes may not allow pets.
Strata fees are required to maintain the grounds and amenities, which could be considered wasteful if you don’t utilise them.
It’s important to inquire about any major repairs needed for the apartment complex before signing a contract.
The future appreciation potential of an apartment may be lower compared to a similarly-priced house.
Apartments are generally smaller in size, which may not suit everyone’s lifestyle.
While the points mentioned above hold true in most cases, there are exceptions. For instance, it is possible to find a three-bedroom apartment that offers ample space and enhanced security similar to a house. Additionally, strategically located apartments can still provide excellent capital growth.
If you need assistance as a homebuyer, reach out today at teresa@teresaberger.com.au. We can offer advice and ideas to simplify the purchasing process.
