Last Updated on March 9, 2021 by Filip Poutintsev
Buying an apartment is considered a viable option these days, especially if you’re a first-time buyer with a limited budget. Whether you’re planning on buying a house or an apartment, it is important to know that it’s a time-consuming but important investment.
Buying an apartment is becoming more popular than buying houses these days since the increasing demand for property is continuously soaring the cost of a house. On top of that, apartment complexes provide considerable benefits that have been able to engross people’s attention. The apartments are well located with good security and easy access to amenities such as gym and swimming pool.
However, the reason for such a low price is its size. These apartments usually have compact space, making it less ideal for a big family. Another drawback is that even when you have access to amenities, you need to share them with other people living in the complex and you won’t have as much privacy as you’d like.
If you’re considering buying an apartment, then this article is for you since we’ll take a deeper look at its pros and the cons.
Brief History of Living in Apartment
The idea of stacking homes on top of each other originated back in the Roman times where they had a type of apartment building called the ‘insula’. The bottom floor would, typically, be a shop and the rest of the upper floors would be living spaces.
Usually, the highest floor would be the cheapest to rent given the safety issues and more flight of stairs. In the 18th century, a modern apartment appeared, which featured mansard roofs and garret rooms, in France and Europeans countries. In this apartment, the cost and the size of the apartment decreased with every successive story.
Between the years 1800 to 1880, the population of New York doubled so the 19th century brought the rise of tenements living in New York. The single house was separated into different living spaces to accommodate the growing population.
After World War II the demand for apartment increased as a result of urbanization and by 1990 apartments were back in the mainstream. In the 20th century, modern apartments with new conveniences and facilities emerged, popularizing it even more.
Pros of Buying an Apartment
1. Cheaper to Buy
Buying a house, these days comes along with a hefty price tag. For those who can’t afford to pay such a massive amount of money, the best alternative is to purchase an apartment. Of course, the price range varies on multiple factors such as the location of the residence, size and age of the building.
However, it still costs lower than a freestanding house. In fact, according to the Domain Group, the median house price in Australia is around $ 636,315 whereas apartments cost about $ 476,023.
2. Less Maintenance Required
Usually, the strata corporate fees cover the exterior building maintenance, plumbing and wiring. If you have plumbing issues, the corporate body can send a plumber right away. So, you won’t have to worry about dealing with those problems.
You no longer need to invest your time on either lawn mowing or gardening. The only work you’ll have to complete is vacuuming your room once or twice a week.
3. Better Access to Amenities
Almost every new apartment these days have a wide array of amenities that you might not get if you buy a home. These complexes come with a swimming pool, gym, communal halls, underground parking, basketball court and even tennis court.
4. Ideal for Living Alone
The size of most of the apartment is perfect if you want to live alone. The small size of the apartment reduces expense as you won’t be buying too many furniture or decorative. You get to save more money as it doesn’t dig too deep into your pockets.
5. Convenience
Most of the apartment these days are located in the centre of the big cities in order to attract many buyers as possible. This marketing strategy is a perk for those buyers as they get to reside at a good location which would be unaffordable if they were buying a house.
6. Better Security
Majority of these complexes have a good level of security. They have the provision of security doors with guards in the main entrance and in the parking lot as well to ensure everyone’s safety. Compared to a normal house, the security level is tighter.
Cons of Buying an Apartment
1. Limited Privacy
When you live in a complex, you’re surrounded by strangers with whom you’ll be sharing the building, the garden area and even the amenities. So, even when you have a gym a few minutes away from your accommodation, you might prefer going to the gym outside the complex.
There’s a high chance of you seeing your neighbours every now and then and even hearing what they’re doing. Things will get even worse if you have nosy and noisy neighbours/
2. Less Space
The relatively cheap price of the apartments is explainable by its small size. While this may be ideal for people living alone or for couples, it won’t be ideal for large families and pet owners for whom a large back garden or a lawn is a priority.
3. Strata Fees
Although you won’t have to worry about gardening or painting the exterior of the building, you will have to regularly pay certain additional fees, called the ‘strata fees’ to the corporate with which they assign workers to do those jobs. These employees are responsible for the maintenance of the swimming pools, communal halls, elevators and gardens.
4. Limited Parking
Even though many of these apartments have parking spaces, there may not be enough parking lots for every car. Also, these parking spaces might be given on the first-hand basis to a few people who, in return, will have to pay a substantial premium for the spot.
5. Restrictions
The last disadvantage of buying an apartment is that you need permission from the landlord even if you consider decorating or personalizing your room. You’re not allowed to repaint or even change fittings without the approval of the body corporate.
Conclusion
The bottom line is that, at the end of the day whether buying an apartment is beneficial for you or not solely depends on your personal preferences. Consider your budget, your preferable size, type and location before randomly hunting down apartments.
Make sure you understand how you are going to pay. Learn more about home loans, do proper market research and try to get the best possible deal for your new apartment!
References
