Could an apartment be your first home?
Are you ready to get your first home? Many first home buyers like to dream big, after all who wouldn’t want a large home on a large block, with a swimming pool, right in the heart of the city. The reality is these homes are very few and far between and often too expensive even for second or third home buyers.
When buying your first home, consider it a stepping stone – you’re not likely to live there forever – especially if you’re planning a family. But, whilst you’re still young perhaps consider the alternative – a small apartment in or close to the city. This means you get the benefits of living close to the city whilst you’re young and can upgrade when you’re ready to start a family.
Location, location, location!
The closer you get to the city, the more apartments there seem to be, so there is no shortage in choice. You get to live in what would usually be a higher priced suburb, but at the lower price point of that market. You’ll likely have plenty of access to shops, cafes, bars and nightlife all within walking distance.
As apartments tend to be in higher density residential areas and closer to the main hubs and main roads, there is often plenty of transport options. It’s highly likely you’ll have frequent busses and trains just minutes from your doorstep – which means you’ll save in vehicle costs and travelling out can be done without the need for expense 2am taxi trips home!
Apartments do tend to be less expensive than town houses and this often means they make better entry level properties. You will likely require a smaller deposit to acquire the apartment and get into home ownership at entry level.
In general, maintenance costs are lower on apartments than they are on buildings or town houses, due to their size there is generally less space to clear and minimal gardens to maintain. This can be a major advantage when acquiring your very first home on a fixed budget. This is particularly true if you buy a newly built apartment where all of the appliances, fixtures and fittings are all brand new.
Unsure how much you can borrow? Check out our true borrowing power calculator here
Rent it out
When it does inevitably come time to upgrade to a larger home, given your apartment is likely is a highly populated area, near public transport and close the cafes and nightlife, you shouldn’t have too much trouble to rent it out. So rather than selling the property, you could simply keep it and start your investment portfolio – many first time investors started out this way and often decades later still own and rent out their first apartment.
Whatever your reason for buying a new home, first consider if the benefits of a smaller home closer to the city will do the trick for you current lifestyle, and remember it doesn’t have to be forever – if you work your strategy correctly and do some forward planning, you can have the large dream home later in life and have surplus money to enjoy your life now! It really isn’t worth sacrificing a good life style just to get the big dream home immediately, when a small apartment might be all you need right now!
Do you know what first home buyer grants are available? Check our first home buyer grants info