There are many factors you need to take into account when you prepare to purchase real estate.
As a first home buyer, many are limited by price - but no matter what you pay, you must make sure it is a worthwhile purchase, i.e. you haven’t wasted your money and time on a property that won’t make any return.
So what do you do? Well, there are many suggestions that not only are new apartments financially more viable, but also a better general
New apartments, specifically those purchased off the plan, offer an avenue to purchase a piece of real estate that is unavailable in almost any other circumstance.
So why are apartments such a valuable and viable purchase option for first home buyers?
Price is the main sticking point for almost any property purchaser, both big and small. Apartments generally cost less than established homes, as they share the land in which they are built on. Whilst this is limiting in terms of ‘owning your own piece of land’, it does offer purchasers a foot-in-the-door scenario.
When purchasing off the plan, you secure the apartment at today’s price, rather than the price at settlement. As off the plan apartments take anywhere from 18 months to 48 months to build, inflation alone can generally mark a good investment, let alone any market movement.
Apartments are comprehensively easier to maintain than an established home. Apartments are well designed to remove many hard to reach places, and are more than often floorboarded throughout.
Additionally, apartments are generally only one-level, removing the need to move up and down stairs to vacuum or mop.
Just like a new car, when you move into your new apartment, it is yours, only yours - no one has lived in it before, you’re the first to write the first page.
3) Location, location location
Apartments offer a location at a price that many would be priced out off. If, for instance, you wanted to purchase an apartment in Potts Point in Sydney, or South Yarra in Melborune, purchasing a home would cost millions; whereas an apartment could be purchased for $6-800k.
Ultimately, you are able to purchase in a location that you shouldn’t be able to afford.
Why are these locations expensive? Because they are close to amenity and convenience.
Amenity or location has been of popular debate between estate agents and developers; but which is more important? Well, when it comes to apartments, you can achieve both, if you purchase well.
Location acts as amenity; if you’re purchasing an apartment in Brighton, then location-based amenities such as the beach and the lifestyle are achieved without the apartment building being there. However, not only do apartments offer the location, but some also offer gyms, tennis courts, pools, cinemas and function rooms - you’re ultimately getting the features of a mansion, without the hassle.
Yes you have to pay body corporate fees, but in essence, these could easily be funded by getting rid of your old gym membership, or cleaners from your previous home.
What’s the crux of the story? Enter the market as quickly and as responsibly as you can; getting your foot in the door offers an expanded opportunity when it comes to your future lending possibilities.