Should you buy an apartment or a house? Six factors to help you make the right decision

The debate over whether to buy a house or an apartment is nothing new and there is no easy answer – both options are equally good. As a 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?

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 20% or more on the price of your home. Off plan apartments are an increasing and excellent option due to the flexibility on the payments, meaning more money in your pocket for a new sofa, lush indoor plants, and a great housewarming spread.

2 – Capital growth

The high maintenance of a house isn’t for everyone. Buying property in the Costa del Sol means thinking about affordability, convenience and location. This all adds to the appeal of apartment living, and increasing demand for 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 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 plot – gives you total control to add value. Over time you might renovate, refurbish, add a pool, build a playground for your dog 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.

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 transportation.

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 community fees. This is a regular cost that you will have that will help with the maintenance of common areas and facilities. Older unit blocks usually have relatively low costs, but modern complexes with things like pools, spas and gyms can have higher fees. Check the sale contract for details of these costs and be sure your budget can handle the cost – they can far outweigh the costs payable on a house.

6 – Privacy

Apartment living does have a certain communal aspect. Some home buyers will love living close to neighbors and having annual Christmas parties. But if you relish your own space, are worried about noise, 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 neighbor, 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 neighbors, extra space and long-term value should all be considerations while you make your decision.

Talking to one of our Investment Advisors will help you decide whether the best option for you is an apartment or a house. Get in touch today!