Flat out great — the hidden benefits of apartment living

Housing hopes are not all lost, though. Great Southern Bank survey data (of 1,500 prospective home buyers, half of those first-home buyers) found that 55 per cent of first home buyer respondents believe they will be able to buy a standalone house in their dream suburb in the next five years.

Although waiting too long for the ultimate “perfect house” might negatively impact people in the long term, especially first-time buyers, with rental prices set to reach record highs this year (CoreLogic, October 2022).

You may be thinking that the only option left is to “succumb” to life in an apartment. However, the thing is, apartment living isn’t all that bad! In fact, some people love the reduced costs, sustainability perks and increased sense of community. While it may not be your forever home, it certainly should be considered a stepping stone on the home ownership journey. Keen to find out more? Here are some of the top benefits of apartment living.

It’s easier to get into the market: This one is the most obvious — with the mean apartment value sitting at $505,000 in Melbourne, compared to $1,200,000 for the average freestanding home, apartments are less expensive across the country than standalone homes. With recent changes to government initiatives that give first home buyers greater concessions — such as the First Home Guarantee and Regional First Home Buyer Guarantee that allow eligible first home buyers to purchase with as little as a 5 per cent deposit and without the added cost of lenders mortgage insurance (LMI) —stepping onto the property ladder into an apartment can be a great first step for buyers. So, if you’re spending the same amount on rent as what you’d spend on a mortgage payment, it might be time to consider getting into the property market with an apartment.

You can forget bin night — and all sorts of other maintenance: Without a lawn to mow, a garden bed to weed or a squeaky front gate to replace, living in an apartment requires a lot less maintenance than your typical standalone home. With the added benefits of communal services as standard (such as waste removal, exterior cleaning and maintenance), you’re probably not going to have to worry about forgetting bin night again. Couple this with the often-added features such as shared rooftop spaces, secure mail delivery and recreation facilities, apartments offer a “home owning lite” experience to buyers — with great benefits, minus the maintenance hassles.

More opportunities for co-living and an increased sense of community: Apartment living is often painted as convenient yet lacking a sense of community. However, new developments are set to change this trend, with a rise in the number of co-housing developments seen across the country. With co-housing, residents guide the development of the apartment building, allowing community-focused features to sit front and centre. Think communal kitchens to host Christmas parties like the one you used to have on your street, summer BBQs with your neighbours on the rooftop, and safe residential spaces for children to mix and play — co-housing can bring the best aspects of community, without the price tag of a standalone home.

They can be more eco-friendly: You may not be living off-grid, but apartments can certainly do their bit to protect the planet. Due to their reduced size and closer proximity to other dwellings, apartments usually require less energy output per resident than your average standalone home. Also, if you’re buying off the plan or a building that is less than nine years old, you can be guaranteed your new building will meet national energy-efficiency requirements. With a focus on features such as thermoregulating materials, aspect maximisation and double-glazed windows to reduce the use of artificial heating and cooling, new apartments that meet at least the six-star standard on the nationwide housing energy rating scheme are a great choice for both your wallet and the environment.

While it is certainly not the only option, apartment living can be a great way for first home buyers to enter the property market. Sure, you might not have the backyard space for cricket at Christmas — but you’ll possibly have a communal green space where you won’t lose the ball over the fence. And although that wraparound verandah is a dream for now, compromising on space to get onto the property ladder can be the first step towards one day owning your dream home.

Jason Moussa is a home loan specialist at Great Southern Bank.