Should You Buy an Apartment as Your First Home?

Apartments here in New Zealand are typically more affordable as well as much easier to maintain. Apartments also provide a much easier framework with which first home buyers can become property owners. This is why this property type is a leading choice amongst first home buyers and early property investors. Here at Mortgage Masters, we understand that your individual needs, desires and ‘must-haves’ when it comes to buying your first home are not only important but essential. That is why we are here to help you with whether to consider an apartment as your first property here in Auckland or greater New Zealand and what advantages there may be to this type of property.

The Advantages of Apartment Living in New Zealand

Real estate agents in New Zealand are saying that there is a growing interest in smaller floor plan living as of late and the national banks are signalling their acceptance of this. With two of the country’s biggest banks loosening lending requirements for apartments, many are making the move into a smaller, easier to maintain the property as their first home or property investment. Until recently, most banks in the country had strict lending restrictions for apartments under certain size limits, requiring as much as 50% of the sale price as a deposit. The banks attributed that to increased risk and volatility in the market for apartments, however, this is beginning to shift.

Not only is an apartment a smaller space, which means it’s easier to maintain and easier to clean, but they are usually far cheaper than houses or rural properties. For young people, this could be a great opportunity to buy a first home or make the move for your first investment, without much of the stress that goes along with other property types. There is no garden upkeep, there is usually shared utilites in apartment buildings, like pools and gyms and a sense of community within the building can mean friendship, safety and camaraderie.

Banks in New Zealand, such as ANZ and ASB are now offering apartment lending at only 20% deposit, despite the body corporate and capital gains risks that apartments can pose. This could be a game-changer for first homebuyers in Wellington and Auckland, where central city living is so expensive, both to buy and to rent. In an apartment, you are usually closer to all the perks of urban life as well. You’ll be closer to bars, restaurants, schools, parks, nightlife venues, motorways, universities and workplaces.

The Right Move for a First Home Buyer

More and more young people in New Zealand who are looking for their first property investment are now more open to apartment living. This could be an opportunity to stay in the area you love, close to work and study life and still enjoy all the perks of homeownership. With less upkeep, less cleaning, less management and central location, investing in an apartment may be the right move for you.

Mortgage Broker vs Lender

When it comes to whether you need a mortgage broker vs lender for your home loan, contact the expert team here at Mortgage Masters. We offer all clients a completely free consultation and always offer our clients the best advice and information when it comes to property investment and first-time home buying.

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