Buying an Apartment: The Benefits and the Costs to Consider
Apartments are a popular choice for first home buyers — often more affordable, easier to maintain, and closer to the action. But like any property, apartment ownership comes with both advantages and ongoing costs.
Looking at the benefits alongside the costs helps you decide whether an apartment is the right fit for your lifestyle and budget.
The Benefits of Owning an Apartment
Lower Purchase Price
Apartments usually have a lower purchase price compared to houses, which can mean:
- A smaller deposit
- Lower mortgage repayments
- An easier entry into the property market
Lower Maintenance Responsibility
One of the biggest benefits of apartment living is reduced maintenance.
Strata generally takes care of the building exterior, common areas, and major structural elements — meaning less time and money spent on upkeep.
Building Insurance Is Usually Included
In most cases, strata fees include building insurance.
This removes the need to organise and pay for building insurance separately, simplifying your insurance costs.
Convenient Locations
Apartments are often located close to public transport, work hubs, shops, and entertainment — which can reduce commuting time and travel costs.
Shared Facilities
Some buildings include amenities like gyms, pools, lifts, or secure parking.
While these can increase strata fees, they also add convenience and lifestyle benefits you might not otherwise have.
The Costs of Owning an Apartment
Strata (Body Corporate) Fees
Strata fees are one of the main additional costs apartment owners need to budget for.
They cover things like building insurance, maintenance of common areas, management costs, and long-term repair funds. Fees vary widely depending on the building and facilities.
Council Rates and Water Charges
Apartment owners still pay council rates and, in many cases, water charges.
These costs are ongoing and should be factored into your monthly budget.
Contents Insurance
While building insurance is usually included in strata, you’ll still need contents insurance to protect your belongings.
Maintenance Inside Your Apartment
You’re responsible for repairs and maintenance within your apartment.
This includes appliances, fixtures, flooring, and general wear and tear.
Special Levies
If major repairs are needed and the sinking fund isn’t sufficient, owners may be required to pay a special levy.
These can be unexpected and significant, making it important to review strata records before buying.
Potential Increases Over Time
Strata fees, insurance premiums, and rates can increase over time.
Planning for gradual increases helps ensure long-term affordability.
Balancing the Benefits and Costs
For many first home buyers, apartments offer a practical and affordable way to enter the market — especially when the benefits align with their lifestyle.
The key is understanding the full cost picture, not just the purchase price or mortgage repayment.
Want Help Working Out If an Apartment Is Right for You?
If you’re weighing up the benefits and costs of apartment ownership and want to make sure the numbers stack up, a quick conversation can help you decide with confidence.
