Buying an apartment vs a house.

The ‘Australian dream’ used to be a quarter-acre block with a Hills Hoist, a swimming pool and a few emus. But maybe that’s not your dream. Perhaps you want to spend Saturday morning firing up the mower and chasing your dogs around the yard. Or you’re keen on a cosmopolitan life, with wine bars and live music at your doorstep. Maybe you’re even facing a compromise: you want a few emus, but you also want a gym in the building and easy access to public transport.

When it comes to choosing a first home, one of the key decisions is likely to be ‘apartment vs house’. There’s no easy answer – both options are equally good. As a first home buyer, it comes down to your individual needs.

We’ve got the inside word on six factors to help you answer the question: should I buy an apartment or a house, and which do the native fauna prefer?

1 – Affordability.

Apartments definitely have the upper hand when it comes to affordability. In fact, based on median property values buying an apartment instead of a house could save you $100,000 or more on the price of your first home. With higher-density living becoming more popular in capital cities, you might also be able to save on stamp duty by buying off the plan. That’s more money in your pocket for a new couch, lush indoor plants, and a great housewarming spread.

2 – Capital growth.

The high maintenance of a house isn’t for everyone. Buying property in Australia means thinking about affordability, convenience and location. This all adds to the appeal of apartment living, and increasing demand for sitting on inner-city balconies on sun-splashed summer afternoons has driven decent rates of long-term capital growth.

Think carefully about how the value of your future apartment might grow. A home in a multi-storey complex could mean a saturation of identical units but a shiny new fit-out, while a flat in an older building might offer more character but higher maintenance costs.

While house prices do fluctuate, a good pocket of land can have appeal to a wider range of buyers, from families to developers.

3 – Potential to add value.

A house – especially with good-sized land – gives you total control to add value. Over time you might renovate, refurbish, add a pool, build a playground for your dog/emus or knock down and start all over again. This flexibility also means you can update inside and out as trends change.

With an apartment, the only renovations you can make are internal. Even then, major reconfigurations will be subject to the building’s regulations, existing wiring and plumbing, and potentially a body corporate. On the flipside, the smaller square footage of apartments may mean you get a lot more bang for your renovation buck.

4 – Lifestyle of an apartment vs a house.

Modern apartment complexes are packed with features. You’ll enjoy mod cons like pools, barbecue areas, well-equipped gyms and even restaurants. They’re more pet-friendly than ever, so your four-legged bestie can come along, too. Even older apartment buildings have plenty to offer: a built-in community, shared maintenance and security. Medium- to high-density living also tends to be built around activity hubs, so you’re more likely to have easy access to shops, facilities, late-night kebabs and transport.

Life in a house can offer more flexibility, with more room to spread out and outdoor greenery. If you love gardening, pets or just tranquil suburbia, a house might be for you. Be aware though, owning a home comes with a raft of chores as well as delights. Older places will need ongoing maintenance, while clearing gutters, mowing the lawn and keeping things looking neat can all take up a fair chunk of time better spent watching the cricket.

5 – Ongoing costs.

If you’re still wondering, “Should I buy an apartment?” consider strata levies. They’re payments that cover the cost of maintaining common property, so everyone benefits from facilities that are well looked after. Older unit blocks usually have relatively low strata levies, but modern complexes with things like pools, spas and gyms can have very high quarterly fees. Check the sale contract for details of strata levies and be sure your budget can handle the cost – they can far outweigh council rates payable on a house.

6 – Privacy.

Apartment living does have a certain communal aspect. Some first home buyers will love living close to neighbours and having annual Christmas parties. But if you relish your own space, are worried about noise, or just want to make sure no one hears your Mariah Carey karaoke, a house may be the better option. Even if you’re happy to share common facilities of an apartment with fellow residents, be sure to check the sound-proofing qualities of the building. It’s one thing to share a lift with a neighbour, but it’s altogether different if paper-thin walls mean you hear every word when they Skype their grandma. So, are apartments worth buying? There’s plenty to think about before you put down your deposit. Lifestyle, proximity to neighbours, extra space and long-term value should all be considerations while you make your decision.

Talk to an ME mobile banker or call ME to see whether an apartment or a house will make the perfect home for you.

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