Buying an apartment is a great first home prospect for people in my generation
There’s been a huge amount in the media over the last few years about the struggle to enter the market for first home buyers.
As someone who bought their first home a year ago, I can attest to this. When we decided to buy we were excited and optimistic. However a few months in we had been disappointed many times and were sick of paying for due diligence on properties that we were then outbid at auction for.
Finally everything looked to be falling into place when we found the property we had been hoping for, through a private sale at a price we could actually afford. Unfortunately our conditional offer fell through in the final due diligence phases, and all we got was a few thousand dollars in legal fees.
Because of this I will now only buy through sales agents, so it was a good lesson to learn.
The story is not all doom and gloom though. The rental property we were living in was listed for sale and everything worked out perfectly to enable us to purchase it. It is an apartment, and interestingly there have been a number of articles in the paper about this being the way to go forward for first home buyers. A few of my colleagues have also recently purchased apartments as their first homes.
Buying an apartment is a great first home prospect for people in my generation – it allows us to enter the property market without over-extending ourselves financially, and is a good “leg up” to something more expensive later on. Apartments are often centrally located, and my partner and I have been able to spend money we would otherwise have spent on commuting into work to refurbish it. Similarly, refurbishing it cost us significantly less than a house would have because of the reduced size! We don’t have to worry about upkeeping a large outdoor area – instead our Body Corporate fees pay for planted common areas in the complex. It allows us an easy lifestyle we would not have been able to have if we had bought a suburban home at a price over our limits. The best part is that when we are ready to move on to something bigger we have this property as the start of our rental property portfolio.
I know it is not for everyone, but I would personally urge first home-buyers to consider apartments as well as suburban houses in their search for their perfect first home, it has worked for me and meant we could get our foot on that “unobtainable” property ladder.