The Australian dream is to live on a quarter-acre block, but achieving this goal can take some time. To get there, consider taking a ‘stepping stone’ journey, and start by buying a unit or apartment.
Securing a smaller place can have a lot of benefits. Here’s why strata living can be something to look forward to.
1. Lower entry point
The first benefit of a strata apartment or unit is that it is more affordable than a freestanding home. If you make a strategic purchase in a suburb that’s in a growth area and you can afford to make additional mortgage payments, the eventual sale of the property should give you a larger deposit for your next place.
Even a one bedroom apartment can help you get your foot in the door as you build up to your next purchase. If you can’t afford an apartment in the city where you live, consider investing in a more affordable area and leasing to tenants.
2. Lock up and leave lifestyle
Purchasing an apartment in a strata building gives you the flexibility to spend time on holiday or travel for work without worrying about overgrown lawns or security, particularly if your building has swipe card access to each floor.
Many people point to security being a reason they enjoy apartment living; these smaller homes have more barriers to entry than freestanding ones because there are more people coming and going.
3. Urban location
Apartments are often in a convenient spot, giving you good access to transport and amenities. When you’re purchasing your first home, this can put you somewhere closer to work so you spend less time commuting. If you’re heading out for drinks or a meal after office hours, getting home is less of an
issue.
4. Cost-effective upgrades
When you buy in a strata building, generally the inside of your unit is yours to do what you please with, unless you plan to make changes to the layout by removing walls etc. An older apartment’s value can be improved by adding storage or upgrading the kitchen and bathroom. There are usually a lot of things you can DIY in order to increase the value and sell for a higher profit.
Note that if you do decide to make changes it’s worth checking with the body corporate to confirm you don’t need approval first.
5. Lower maintenance costs
Smaller apartments usually require less energy than houses when it comes to temperature control. You also have the benefit of paying a fixed monthly cost for building and ground maintenance. Unlike a house, when something goes wrong, the cost of fixing it won’t be completely up to you; it will be
shared between all owners.
6. More free time
The next benefit of apartment living is not having to worry about maintenance and upkeep yourself. Shared areas are maintained and cleaned by the building’s strata management provider. You won’t even need to put the bins out.
7. Shared amenities
These days many strata blocks include outdoor BBQ areas, swimming pools and gyms, giving you resort-style living without the high costs. Because of this, you may find living in an apartment so enjoyable and convenient that you decide to stay for the long term.
According to research from the University of NSW, one in six Australians are living in strata titled properties such as apartments and townhouses. With housing being in high demand around the country, this is set to increase.
Of course, like anything, strata living can have its drawbacks. Before you buy, talk to the selling agent about the community within the building and take a look at the strata by laws to make sure you are comfortable with them. Don’t forget to request details of the most recent strata meetings and reports
so you can see if there are any major issues that might cost you money in the future.
Finally, be aware of how much the strata fees will be as this will add to your monthly costs.
Looking to buy an apartment, unit or townhouse in a strata complex? This can be a smart move as a first home buyer. Reach out at teresa@teresaberger.com.au to see what’s available in your area.
