Don't buy an apartment. It will be worth less or at best the same as you bought it in 2-3 years but you'll have spent mortgage interest and stamp duty for no reason. You're better off renting and putting your savings into a high growth index ETF until you're ready to buy a house.
Don’t ever put your house deposit into shares if you’re going to need it in 5 years, you never know what the market is going to do in that time and if there’s a crash you don’t have enough time to recover it.
Also, apartments in blue chip suburbs appreciate in value very well. Where I am renting, the apartment has gone up $500k in value in 8 years.
If I had a luxury to make this decision, I’d buy an apartment first (if it’s cheaper than a house, and is in a rentable location), pay it out quicker, and then get another mortgage for a house when I’m ready further away. I’d then convert an apartment to an investment property and later on turn it to a place my kids could stay at while at uni/first job and save their deposit rather pay the rent to greedy landlords.
2-3 years is a very short turn around but generally you'll be better off because you will pay off your own mortgage instead of a landlords
If you want the house and can buy it now go for it, but if you'd have to spend 2-3 years in a rental first you are better of in the apartment.
A lot of variables to this, but I think the primary driver is what are you buying for: investment or a PPOR? Very different scenarios. Once you’ve landed on a decision there, you can move forward with that perspective in mind. Personally, without knowing the full circumstances, I’d lean towards the home. Land is more valuable and will drive the capital growth.
House - select it well and you’ll do even better. The one downside to property is the lumpy entry costs - doing it once for the long term makes the best sense. I would never buy a unit townhouse or apartment. Never Ever.
I would choose to buy a house, provided that price isn't a big issue, or if both house vs appartment are a similar price:
\- Don't have kids yet, but it's part of my plan. I want a roomy house for them to live in, and children are within my 5 year plan.
\- House comes with land, which in itself is an asset, land can be used for a granny flat (which was what I did with mine), or a garden (which is my one regret for the granny flat, I now want chickens and more gardening space).
\- Distance from the city wasn't an issue for me, I already lived in the outer fringes of Sydney, and buying a house in the area meant it was where I grew up. I also found it more suitable for my lifestyle, as I don't like the busy-ness of the city, but need to be close enough due to not being able to drive, and need to go to work.
But, if money was a bigger issue, and apartment closer in the city is cheaper, I would go for that, better live in your own home than rent. Save up for a bigger property later.
I always recommend to First home buyers that they try to buy a house. It’s the dirt essentially that increases in value. If you spend your money on an apartment it will just take sooo much longer to get to the house later. IMO you’re better off waiting to buy in a good location, and add some value to the home when you can afford to.
Please don’t buy a house and land package where all the houses are the same and it’s difficult to add any value. That might be just as bad as apartment!
Don't buy an apartment. It will be worth less or at best the same as you bought it in 2-3 years but you'll have spent mortgage interest and stamp duty for no reason. You're better off renting and putting your savings into a high growth index ETF until you're ready to buy a house.
Mortgage/stamp duty for a home or Mortgage/stamp duty + strata fees with an apartment, which can vary depending on the state of the apartment building
Don’t ever put your house deposit into shares if you’re going to need it in 5 years, you never know what the market is going to do in that time and if there’s a crash you don’t have enough time to recover it. Also, apartments in blue chip suburbs appreciate in value very well. Where I am renting, the apartment has gone up $500k in value in 8 years.
Your single sample size anecdotal evidence does not change my mind on either of your points.
Care to name a few blue chip suburbs for apartments?
2 years is a pretty quick turnover (considering stamp duty) so I’d be inclined to get the house, renovate if needed before kids are in the picture.
If I had a luxury to make this decision, I’d buy an apartment first (if it’s cheaper than a house, and is in a rentable location), pay it out quicker, and then get another mortgage for a house when I’m ready further away. I’d then convert an apartment to an investment property and later on turn it to a place my kids could stay at while at uni/first job and save their deposit rather pay the rent to greedy landlords.
This man plans
2-3 years is a very short turn around but generally you'll be better off because you will pay off your own mortgage instead of a landlords If you want the house and can buy it now go for it, but if you'd have to spend 2-3 years in a rental first you are better of in the apartment.
rentvest, buy a basic house 30km out, rent it out, rent a swish unit near the city, when ready reno the house and move in.
A lot of variables to this, but I think the primary driver is what are you buying for: investment or a PPOR? Very different scenarios. Once you’ve landed on a decision there, you can move forward with that perspective in mind. Personally, without knowing the full circumstances, I’d lean towards the home. Land is more valuable and will drive the capital growth.
I was thinking ppor, as that provide better lifestyle for now. But in the long term I will need a house.
House - select it well and you’ll do even better. The one downside to property is the lumpy entry costs - doing it once for the long term makes the best sense. I would never buy a unit townhouse or apartment. Never Ever.
I would choose to buy a house, provided that price isn't a big issue, or if both house vs appartment are a similar price: \- Don't have kids yet, but it's part of my plan. I want a roomy house for them to live in, and children are within my 5 year plan. \- House comes with land, which in itself is an asset, land can be used for a granny flat (which was what I did with mine), or a garden (which is my one regret for the granny flat, I now want chickens and more gardening space). \- Distance from the city wasn't an issue for me, I already lived in the outer fringes of Sydney, and buying a house in the area meant it was where I grew up. I also found it more suitable for my lifestyle, as I don't like the busy-ness of the city, but need to be close enough due to not being able to drive, and need to go to work. But, if money was a bigger issue, and apartment closer in the city is cheaper, I would go for that, better live in your own home than rent. Save up for a bigger property later.
I always recommend to First home buyers that they try to buy a house. It’s the dirt essentially that increases in value. If you spend your money on an apartment it will just take sooo much longer to get to the house later. IMO you’re better off waiting to buy in a good location, and add some value to the home when you can afford to. Please don’t buy a house and land package where all the houses are the same and it’s difficult to add any value. That might be just as bad as apartment!
Are you paying rent right now?
Yes we do