Apartment living is not for everyone.  If you haven’t lived in an apartment before, consider living in one for a while before buying.

Pros:

• Often more affordable because you’re not buying land.  Also, some of the costs are shared between each of the apartments in a block
• Easier maintenance, so more time for leisure activities.

Cons:

• You’ll usually have less space, particularly outdoors, than other forms of housing
• Less privacy, because of the proximity of neighbours
• Can be noisy for the same reason.

In some ways, looking for an apartment is similar to looking for other types of homes.  For example, many of the things on our inspection checklist apply equally to apartments as to any other type of home.  However, there are some particular aspects that you need to consider when purchasing an apartment: 

Finance
Arranging a home loan for an apartment can differ from other types of housing, because the apartment market can be more volatile.  Some conditions may apply – if you’re thinking about buying an apartment, talk to us first.
 
Car parking
Look for an apartment with a car park – in most inner-city areas car parking is increasingly at a premium.  Even if you don’t own a car it will increase the appeal and value of your apartment.

Noise and privacy
These are much greater issues in apartments because of the concentration of people living nearby.  Shared walls may also increase noise levels because of shared services like plumbing.  Check these aspects out carefully.

Owner-occupied apartment buildings are preferable
Where most of the apartments are owned by investors there is less long-term commitment to the success of an apartment block.

Design and structure must be built-in
Unlike a freestanding house, it may be much more difficult or even impossible to remedy structural or design problems later.

Space
Apartments are usually smaller than many other types of housing, with less indoor and outdoor space (sometimes none at all).

Maintenance and administration
Most apartment blocks are managed by a body corporate.  Apartment owners pay a levy towards the upkeep and running of the block.  Find out how the body corporate operates, and what the rules are in terms of what you can (and can’t) do with your apartment.  How much is your levy?  Is there a live-in manager?  If not, how is maintenance, rubbish collection etc. carried out? Get a copy of previous minutes of body corporate meetings so you can see the kinds of issues that come up in the block.

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The content on our site is for information only. You should obtain professional advice relevant to your circumstances. Our lending criteria, terms conditions and fee criteria apply to all loans. Contact us for more details.