Could an Apartment Be Your First Home?

Could an apartment be your first home?

Many first home buyers dream big, hoping for a large house on a spacious block with a swimming pool near the city. However, these properties are rare and often too expensive even for second or third home buyers.

A first home can be a stepping stone rather than a forever property. For buyers starting out, a small apartment in or near the city provides the benefits of location and lifestyle, with the flexibility to upgrade later.

Location, location, location!

The closer a property is to the city, the more apartment choices exist. Buying an apartment allows entry into a higher-priced suburb at a lower price point, with shops, cafes, and nightlife within walking distance.

Transport

Higher-density residential areas near main hubs generally feature plenty of transport options. Frequent buses and trains close by can help reduce vehicle running costs and daily commuting expenses.

Price

Apartments tend to be less expensive than houses and townhouses, making them ideal entry-level properties. A lower purchase price generally requires a smaller deposit to achieve home ownership.

Maintenance costs are also typically lower due to smaller living areas and minimal gardens. Purchasing a newly built apartment with new appliances, fixtures, and fittings can further minimise ongoing upkeep.

Rent it out

When the time comes to upgrade to a larger home, an apartment located near public transport, cafes, and amenities can become an attractive rental property. Retaining the apartment can serve as the foundation for an investment portfolio.

Start small

When planning a home purchase, consider whether the benefits of a smaller property close to the city suit your current lifestyle. Starting with an apartment offers a practical entry into the market while preserving financial flexibility for the future.