A
partments are no longer the
poor relation of houses. These
days, one in 10 of us chooses
apartment living, rising to one
in five among millennials.
And it’s a choice that can have plenty going
for it, particularly on the affordability front.
Nationally, there’s a $100,000 gap between
the median house value and the median unit
value. In Sydney, Melbourne and Canberra
this gap widens to more than $180,000.
The price difference is a big deal, especially
for first home buyers. A CoreLogic/ANZ
report found it can take almost 10 years to
save a 20% deposit for a house in our state
capitals, compared with around eight years
for an apartment.But it’s not just about getting into a place
of your own sooner. “Quite often an apart-
ment means buyers will be able to afford to
live closer to work and other lifestyle factors
like cafes, bars and restaurants,” says Scott
Le Quesne, an Aussie Home Loans broker in
Sydney’s Parramatta region.
While affordability is important, research
by WA-based Australian Apartment Advo-
cacy found security is the No. 1 motivator
for apartment owners nationally. That’s
followed by ease of maintenance and a “lock
and leave” lifestyle.
Living in an apartment may free you from
weekends spent mowing lawns or cleaning
gutters, but complexes have common areas,
including outdoor spaces, that need to bemaintained. The cost is covered by strata
levies, which vary widely.
“Buildings that have amenities like lifts,
pools, gyms or large grounds will typically
have higher strata fees than smaller blocks
without the amenities,” says Le Quesne.
In some cases, the strata levies can be sky
high. Some Sydney CBD apartments have
levies nudging $12,000 a year. That’s on top
of council and water rates.
The key, according to Le Quesne, is not just
to check strata levies, which will show what
you’re up for each quarter, but also to obtain a
recent strata report. “This will detail a number
of things, including the financial position of
the unit’s strata body. That can help to ensure
there won’t be unexpected extra levies forOn another
level
STORY NICOLA FIELDPROPERTY A PA RTM ENTS
High-rise living has growing appeal, but the
lifestyle dream can become a nightmare if
buyers don’t do their homework