Whether you're a first home buyer looking for a finance broker or a seasoned investor with plenty of capital, you might be tempted to buy in the city. Queensland has experienced a 12.9 per cent increase in building commencements, and most of these are apartments, says the Property Council of Australia. You'll find yourself spoiled for choice if you're looking now.
But if you are still teetering on the edge of making the urban plunge, here are a few reasons why you should buy an apartment in Brisbane.
1. Everything on your doorstep
Living in an apartment in the middle of the city certainly has its perks. You have a whole host of restaurants, shopping and entertainment right on your doorstep – things that suburban folks have to travel to the city to experience. Need to do your shopping? It's just down the road. Want to grab a bite to eat? There are five good dining options in your vicinity.
However, it isn't just the convenience that is a boon for the average Australian. In the city, fuel is a cost that can easily be avoided, and 11.2 per cent of Brisbaners did just that by walking to work reports the Australian Bureau of Statistics (ABS). Only 3.7 per cent of those in the rest of Queensland were able to do this in comparison. Many people work in the city, and if you live there too, it can result in a huge saving in transport costs.
In addition to that, public transport is far more available, as 19.7 per cent of Brisbaners were able to take the bus or train to work, compared to 7.6 per cent. So even if you can't find what you're after in the city itself, it's far easier to make your way anywhere else in the greater region.
It can be beneficial to pay off your mortgage rather than spend your money on rent.
It's a bit of a rule in property that units will nearly always be cheaper than houses in the same area. In Brisbane's case it is quite significantly cheaper to buy. According to CoreLogic RP Data, a unit in Brisbane is valued more than 100 index points lower than a house – that's 20 per cent cheaper.
The ABS also describes how it can be beneficial to pay off your mortgage rather than spend your money on rent. Data from 2013 to 2014 shows that some households spent 34 per cent of their weekly income on rent, compared to 27 per cent for similar households who were instead paying off their mortgage.
So buying a unit is not only significantly cheaper than purchasing a home, but calculating your home loan repayments might sometimes result in a better deal than simply renting!
3. Apartment building amenities
Do you have a gym membership? Does your current place have a dedicated car park? How about a robust security system?
Apartment buildings often offer any number of these, with amenities ranging from communal gyms to built-in internet connections to swimming pools. You would have to pay a premium to find anything like that in a house, but in an apartment building you just pay a much, much smaller amount to the body corporate.
For that fee, you get access and maintenance of these facilities – when you buy a home with a swimming pool, it's only you and your household paying for it. When you share one with an entire apartment building, it becomes a lot more affordable in the long run, plus you don't have the responsibility of looking after it!
There are plenty of reasons to buy an apartment in building, but if you're looking to make a purchase, you'll need to know how much you can borrow. Speak to the expert finance brokers at Premium Mortgage Group today to find out how we can help you take on the urban lifestyle.