First home buyers are using inner-city apartments to build equity

Young Australians are increasingly turning to new build apartments as a first step onto the property ladder - using government incentives, central locations and lower entry price points, to secure their foothold in the market without sacrificing lifestyle. 

For Brunswick West buyer Matt David, purchasing an apartment at AVID Property Group's Harvest Square community wasn't about finding a forever home - it was a strategic first move that has since allowed him to upsize to a townhome and convert his apartment into an investment property.

“Living centrally was really important to me as it meant I didn’t have to compromise on my lifestyle,” Matt said.

“Harvest Square offered me the opportunity to purchase a high quality, well-constructed property within an entry level, single income budget – meaning I could still make the most of the available government incentives and not feel the added pressures of mortgage stress.”

In Victoria, first home buyers may be eligible for stamp duty concessions as well as the $10,000 First Home Owner Grant (FHOG) if they buy or build a new home valued at $750,000.

For buyers like Matt, purchasing a new build apartment meant he could benefit from this scheme and still live in Brunswick West, where house prices average well above $1 million.

Matt has since used the equity from his purchase to upsize to a larger town home and turned his previously owner-occupied apartment into a successful investment property.

"For me, buying an apartment wasn’t about securing my forever home," Matt said.

"It was about taking that first step onto the property ladder without compromising on my lifestyle in the process.”

AVID general manager of victoria, Penny Forrest said stories like Matt’s have become increasingly common.

“More first home buyers are gravitating towards apartments as an accessible entry point into the property market, allowing them to secure a home without sacrificing location and convenience,” Penny said.

“At Harvest Square, we see a mix of downsizers and first home buyers, both drawn to the accessibility to the city, excellent public transport and the vibrant community with quality amenities on their doorstep.”

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