The pros and cons of apartment living

Apartment living can be the dream for some people. The big question is, should you invest in one, will it give you financial gains in the future?

HIA reported the high volume of multi-unit approvals during 2016 although they have dropped slightly since 2015. HIA senior economist Shane Garrett said that “Multi-unit approvals have continued to be resilient, although they sit at levels slightly lower than a year ago.”

There are pros and cons to investing in an apartment but these tips will hopefully help you decide.



Monique Sasson Wakelin, the director of Wakelin Property Advisory said that “as a growing number of Australians have come to prefer living closer to the centre of town, the patterns in property growth have changed”. The market is showing a trend in apartment living, if that lifestyle trend continues, there will be financial gains if you decide to sell it one day.

Further to this, Corelogic RP Data states that at the end of July over 91,000 apartments were sold in 2016 alone. The property market will always be fluid but seeking financial advice to see if this trend will continue for your investment can help your decision.



It’s smaller than a house! With that, of course there are some cons. Will your lifestyle suit a small space to live in, especially if you are going to live in for a while and not just use it as an investment.

The capital gains from selling an apartment are obviously lower than that of a house. There is less floor space, no outdoor space, not a lot of sun and you need body corporate approval for renovations.

It is not just your unit/apartment that you need to think about when it comes time to sell, you need to know if the building will hold the sale back. Are the neighbours friendly? Are the facilities useful for singles or families? It might be close to the nearest bars in town but where are the nearest schools? The apartment you choose needs to be appealing to as many people as possible so that it has a better chance of selling.


YourHome suggests that if you are planning on buying an apartment you should consider the following:

  • Hire a building inspector to make sure any future renovation ideas won’t have restrictions
  • Get to know the body corporate, which will control many decisions for the building as a whole
  • Choose an apartment with features that are already built in (like clothes dryers)
  • Find out if there are baloneys or access to a rooftop garden
  • Is the building close to public transport?
  • Are there noise cancelling windows (this can be extremely important)


Living closer to the city has become a growing trend in most recent years, are you going to be the next one to flock there?

Talk to a Border Bank home loan specialist to find out how we can help make your dream a reality.