Homebuyer hopefuls may understandably feel a little anxious as interest rates rise and property prices continue to climb, but according to non-bank lender Liberty, there is a perfect way to overcome those homebuying jitters and get into the market sooner – an apartment.
Whether as a place to live in, or as an affordable entry point for first-time investors, an apartment, with its increased affordability, is one way borrowers can navigate through current market conditions to homeownership.
“Apartments are generally more affordable than houses, plus, the lower initial outlay could mean lower risk,” said Heidi Armstrong, Liberty’s head of communications. “You could also get more bang for your buck if your apartment is part of a complex with facilities such as a gym, swimming pool, or communal garden.”
Across Australia, the median apartment or unit cost is generally lower than the median house price, meaning buyers could purchase in an ideal location and stay within budget at the same time – even with a smaller deposit.
Recent census data also revealed the increasing popularity of apartment living. In the past 25 years, the number of occupied apartments has jumped by 78%, with the demand for apartments tipped to rise, as the Australian Bureau of Statistics was projecting a rise in the number of Australians living alone.
According to Liberty, many of those looking to buy in 2022 are choosing affordability and efficiency over buying their dream home first-up.
As with any new home, Armstrong urged those interested in getting an apartment to consider what type of property would suit their needs, as well as the location, budget, and borrowing power. She also encouraged borrowers with irregular income or who are self-employed to consider more free-thinking home loans when considering an apartment.
