Thinking of Buying Your First Home? Here’s Why an Apartment Makes Sense

 For many first-time buyers, apartments provide an affordable, low-maintenance, and strategically smart way to enter the property market and begin building equity sooner.

For many first home buyers, the decision between purchasing an apartment or a house can feel overwhelming. While the traditional Australian dream often points toward a freestanding home on a quarter-acre block, the reality of today’s housing market, especially in urban centres, has made apartments an increasingly popular and practical choice. With affordability challenges, changing lifestyles, and a focus on convenience, there are strong reasons to consider an apartment as your first step onto the property ladder.

Here are five compelling reasons why buying an apartment might be the smart move for first-time homebuyers.

1. Affordability and Entry to the Market

One of the most significant barriers for first-time buyers is the price of property. In major cities like Sydney, Melbourne, and Brisbane, median house prices can be out of reach for many young professionals or couples starting out. Apartments, on the other hand, are typically much more affordable.

Because apartments generally cost less than houses in the same area, they offer a lower entry point into the property market. This makes them ideal for first-home buyers who may not have a large deposit or who want to avoid overextending themselves with a high mortgage. Lower purchase prices also mean lower stamp duty costs, which is another considerable saving when buying your first home.

Example: If a house in a particular suburb costs $900,000, but a two-bedroom apartment in the same area costs $600,000, that's a potential $300,000 saving—money that can be used to furnish the property, pay off the mortgage faster, or even invest elsewhere.

2. Prime Locations and Urban Convenience

Apartments are usually located in or near city centres, transport hubs, universities, and employment districts—places where land is scarce and in high demand. This means buyers can live closer to work, nightlife, shopping, and public transport, all of which add tremendous value to day-to-day life.

For those who prioritise a short commute, vibrant community life, and easy access to essential services, an apartment offers a lifestyle advantage that can be hard to beat. Living in a prime location also increases the long-term value of your property and enhances the potential for rental income if you choose to lease it out in the future.

Bonus Tip: Some developments also offer lifestyle amenities such as gyms, rooftop terraces, swimming pools, and communal gardens—features that would be unaffordable or unavailable in a standalone house for most first-time buyers.

3. Lower Maintenance and Ongoing Costs

Maintaining a home comes with a host of responsibilities—landscaping, roof repairs, exterior painting, and more. For apartments, many of these external responsibilities are handled by the body corporate (owners’ corporation), making apartment living less hands-on and more manageable for those new to homeownership.

Strata fees cover shared maintenance expenses, insurance, and management of common areas, which can actually save you money and time in the long run compared to maintaining a house. Plus, with no garden or lawn to care for, your weekends are truly yours.

For busy professionals, singles, and couples who travel frequently or just prefer a low-maintenance lifestyle, apartments can be a hassle-free option.

4. With and Apartment, First Home Buyer Incentives can Still Apply

Just because you’re buying an apartment doesn’t mean you miss out on government incentives. In most states and territories, first home buyer schemes apply to apartments just as they do to houses, provided the property value falls within the relevant thresholds.

These incentives can include:

• First Home Owner Grants (FHOG): A lump sum payment for buying or building a new home.

• Stamp Duty Concessions: Significant discounts or complete exemptions.

• First Home Guarantee (FHBG): Allowing eligible buyers to purchase with as little as a 5% deposit without paying Lenders Mortgage Insurance.

• Super Saver Schemes: Using super contributions for your deposit.

By taking advantage of these schemes, many first-time buyers find that an apartment becomes a more affordable and accessible option than they initially thought.

5. Investment Potential and Future Flexibility

Buying your first home doesn’t mean it has to be your forever home. For many, their first property becomes a stepping stone to build equity and eventually upgrade. Apartments in high-demand areas tend to have strong rental potential, which means they can easily be turned into investment properties in the future.

Even if you choose to live in your apartment for just a few years, its location and affordability can make it a valuable long-term asset. Many buyers adopt a “rentvesting” strategy—buying an apartment in an affordable growth area and renting where they want to live—to get on the property ladder while maintaining lifestyle flexibility.

Additionally, the resale value of well-located apartments, particularly those in boutique or well-designed buildings, can perform well over time, especially as urban densification continues to increase demand.

Final Thoughts: Is an Apartment Right for You?

While there are many advantages to buying an apartment as your first home, it’s important to assess whether it suits your lifestyle, financial goals, and future plans. Consider factors such as:

• Strata fees and body corporate rules

• The quality and reputation of the building and developer

• Noise and privacy considerations

• Resale and rental demand in the area

Still, for many first-time buyers, apartments provide an affordable, low-maintenance, and strategically smart way to enter the property market and begin building equity sooner.

Need Help Navigating Your First Home Purchase?

Whether you're buying an apartment or a house, getting the right finance in place is crucial. An experienced mortgage broker—like the team at Etairos Finance—can guide you through your options, explain government grants, compare lenders, and help you secure pre-approval with confidence. Let us take the stress out of buying your first home and set you on the path to successful property ownership.

Contact us today to get started on your journey to owning your first apartment.