This has to be one of the never-ending debates in real estate. Should I buy a new house or consider an apartment instead? Sometimes the answer is pretty straightforward, but when faced with this question and finding yourself at a loss, how do you decide what your ultimate move will be? Living in a house and living in an apartment both come along with their own perks and obligations that ought to be carefully considered.
The financial and investment aspect
If you have a specific budget in mind already, you may be able to compare the offering of the house market with that of the apartment market and see what you would be able to get from both markets at that specific price in different locations. You should ask – How do houses fare as opposed to apartments? – and vice versa. What has been recording the highest increase in value?
It is important to take into account what is popular in the area where you are looking to invest as this may affect future saleability. In view of this, you should also consider whether you will be renting out your property or parts of it to a tenant. If this is the case, you should know what people in that specific area are looking at and what their average budget is.
Some property investors also believe that houses offer more potential to differentiate and add value since apartments may be deemed as 'too similar', however this may not always be the case.
Location
As the old saying goes, "Location, location, location." Whatever you decide to buy at the end of the day, location is key. Location does not only affect price, but also current trends and can determine what will be available on the market. In urbanised city centres and town areas, new property developments are likely to comprise mostly of apartments, meaning that an apartment might be the better option if you are looking for a brand new property in such a region.
The services and amenities present in the surroundings will also influence the price and value of a property – something you might want to consider mainly from an investment perspective. Generally, the price per metre for a property situated near the centre will be higher than that of a property situated further away, meaning that you will pay a higher price for a smaller surface area for a centrally located property, however rental yields may be higher and being situated close to all services and amenities implies less travelling costs and time.
Lifestyle Option
Ultimately, moving into a new home involves making a lifestyle decision. You need to consider what will suit your needs better and what will complement your everyday living. The longer you plan on staying in one place, the more attractive homeownership might seem. One of the advantages of owning a house is having more internal space or a private outdoor area that can be used for entertaining.
On the other hand, however, a house will also bring along more maintenance and repair costs to be shouldered. Space within an apartment might be more restricted, particularly as the building is shared with other people, however different apartment types and layouts may make up for this. A penthouse, duplex apartment or studio apartment are all different apartment types that you may choose from and all these come in different layouts and sizes.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
