Depending on where you were brought up, you probably have a fairly set idea of what it means to buy your first property. City dwellers may be used to apartment living, and those from the ‘burbs or beyond will have bricks, mortar and big backyard in their blood.
Buying your first place is a huge decision, so make sure you take the time to consider your options fully before committing.
Commonly Held Beliefs
There are those who’ll tell you that the real value in property is the land it sits on, and then there are those who’ll spruik the importance of a dwelling’s characteristics – number of beds and baths, for example.
While it may have been true once that houses make the best investments, the changing nature of Australia’s population means more and more of us prefer living close to urban centres.
Focus on what’s important
First and foremost, the question you should be asking yourself isn’t whether you should be buying a house or apartment – you should be considering which property will most likely deliver the highest return.
In the past, houses have delivered a higher rate of return over a longer period of time, but over the short to medium term, this isn’t always the case. Data from the Real Estate Institute of Australia (REIA) shows that over the past ten years, median house prices increased by 81%, while the median apartment price increased by 72%.
The Perfect Fit
Of course, your property choice shouldn’t just come down to hard, cold numbers. Real Estate is equal parts head and heart, as every agent will know.
Once all the papers are signed and the SOLD sign is removed, you’ve got to be happy with your purchase, so it’s worthwhile considering the following questions before making your choice.
- How much maintenance are you willing to perform?
- How much does extra space (garage/backyard) matter to you?
- How close do you want to be to retail, public transport and cafes?
- How close do you want to be to schools and community centres?
- How much foot traffic are you prepared to tolerate around your place?
- How long do you see yourself in your first property?
- Do you plan to have a family while in this property?
- Are you willing to pay strata fees on top of a mortgage for an apartment?
- Are you willing to pay (traditionally) higher mortgage repayments for a house?
Answering these questions should give you a pretty clear idea whether a house or apartment is the right option for you for your first property purchase.
Before you dip your toe in the market, speak to the property lending experts. The Greater have been helping Australians reach their goal of home ownership for over 70 years. We’ve got a range of great value Home Loans to choose from, helpful lending Calculators and Tools to ensure you’re ready to buy, and we’re ready to talk when you are. Why not start a conversation with us online today?
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