Pros and Cons of Buying an Apartment

One of the options that often stands out is buying an apartment, especially in major cities such as Sydney, Melbourne, and Brisbane. Buying an apartment can be a great way to own your own home without having to worry about the maintenance and upkeep of a house. However, there are also some drawbacks to apartment living, such as less space and privacy.

This article will discuss the pros and cons of buying an apartment so that you can make an informed decision about whether or not it is right for you.

Pros of Buying an Apartment

Here are some of the pros of buying an apartment:

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Apartments tend to be more affordable than houses, especially in Australia’s key cities. This is a major advantage for first-time buyers or those with a tighter budget looking to enter the property market. An affordable entry point can mean a smaller mortgage and potentially less financial stress.


Apartments are often strategically located close to city centres. This can offer the convenience of living close to offices, shopping districts, entertainment venues, and public transportation. 

For many, this can mean a reduction in commuting times and easy access to city amenities, making day-to-day living more comfortable and economical.


As part of an apartment building, your responsibility for maintenance is often limited to the interior of your apartment. The body corporate typically handles the maintenance of common areas, gardens, the building’s exterior, and shared amenities such as pools or gyms. 

This can save owners significant time and money, particularly when major repairs or refurbishments are needed.


Apartments usually have extra security features that individual houses do not. This can include security cameras, secure entrances, intercom systems, and in some cases, on-site security personnel. 

These features can provide a higher level of safety and peace of mind, especially for those living alone or in the city centre.

Community Living

Apartments can foster a strong sense of community. Shared spaces and community events can offer opportunities for social interaction and the formation of friendships. For those who value being part of a community, this can significantly enhance the living experience.

Cons of Buying an Apartment in Australia

Here are some of the cons of buying an apartment:

Limited Space and Privacy

Compared to standalone houses, apartments generally offer less living space, which may not be ideal for larger families or people who require extra room. 

Additionally, the close proximity to neighbours and shared common areas can limit privacy. Balconies, for instance, are often overlooked by neighbouring apartments.

Strata Fees

Apartment owners usually have to pay strata fees for the maintenance of the building and common areas, which can add a significant amount to the cost of apartment living. These fees can fluctuate depending on the age of the building, the condition of shared amenities, and how well the building has been maintained.

Lack of Control

When you live in an apartment, you have to follow the rules set by the body corporate or owners corporation. These rules can be restrictive and may cover areas such as pet ownership, modifications to the apartment, and even behavioural guidelines. 

For those used to the freedom of a standalone house, this can feel limiting.


Noise can be a major downside of apartment living. Given the close proximity of neighbours, you could potentially hear them talking, watching television, moving furniture, or even just going about their daily routine. This can be particularly disruptive if you require peace and quiet for work or relaxation.

Potential for Oversupply

In recent years, several Australian cities have experienced a boom in apartment construction, leading to an oversupply in some areas. This can potentially depress apartment prices and rental rates, affecting both investment returns and the potential for capital growth. 

This situation requires careful market analysis before buying.

Are Apartments a Good Investment in Australia?

Investing in apartments in Australia can have both advantages and disadvantages. Here are a few points to consider:


  • Rental Income: Apartments can provide a steady rental income, especially if located in high-demand areas or close to amenities such as schools, public transportation, and shopping centres.
  • Lower Maintenance: Compared to houses, apartments generally require less maintenance and upkeep, as the responsibility for common areas and external maintenance is often handled by the body corporate or strata management.
  • Affordability: In some cases, apartments can be more affordable than houses, making them an attractive option for first-time investors or those with a limited budget.
  • Potential for Capital Growth: Apartments located in desirable areas with strong growth prospects may experience capital appreciation over time, allowing investors to build wealth.


  • Oversupply and Market Saturation: Certain areas in Australia have experienced oversupply of apartments, which can lead to decreased rental yields and potential difficulty in reselling the property.
  • Strata Fees: When investing in an apartment, you’ll likely be subject to strata fees or body corporate fees. These fees cover the maintenance of common areas, building insurance, and other shared expenses. It’s essential to consider the impact of these ongoing costs on your investment returns.
  • Limited Control: As an apartment investor, you have limited control over decisions regarding the building and common areas. These decisions are typically made by the body corporate or strata committee, which may affect your investment.
  • Financing Challenges: Lenders may have specific criteria and restrictions for apartment purchases, such as minimum floor size, location, or percentage of owner-occupiers in the building. It’s crucial to be aware of these requirements and their potential impact on your ability to secure financing.

Ultimately, the success of an apartment investment in Australia depends on various factors such as location, demand-supply dynamics, rental market conditions, and the individual property itself. 

Do Apartments Go Up in Value?

Yes, apartments can go up in value. However, the rate at which they appreciate in value can vary depending on a number of factors, including:

  • Location: Apartments in desirable locations, such as close to city centres or public transportation, tend to appreciate in value more quickly than apartments in less desirable locations.
  • Size: Larger apartments tend to appreciate in value more quickly than smaller apartments.
  • Amenities: Apartments with amenities, such as pools, gyms, or parking, tend to appreciate in value more quickly than apartments without amenities.
  • Condition: Apartments that are well-maintained and in good condition tend to appreciate in value more quickly than apartments that are not well-maintained.
  • Market conditions: The overall market conditions can also affect the rate at which apartments appreciate in value. If the market is hot, apartments are more likely to appreciate in value quickly.

It is important to note that there is no guarantee that an apartment will appreciate in value. The value of an apartment can also decrease, depending on market conditions. Therefore, it is important to do your research before investing in an apartment.

Should I Buy an Apartment?

Whether or not you should buy an apartment depends on your individual circumstances and goals. Here are some factors to consider:

  • Your financial situation: Can you afford the down payment and monthly mortgage payments? Do you have enough money saved for closing costs and unexpected repairs?
  • Your lifestyle: Do you want to live in a city or suburb? Do you need a lot of space or are you okay with something smaller?
  • Your long-term goals: Do you want to live in the apartment for the long term or are you planning to rent it out?
  • The market: Is the apartment market in your area hot or cold? Are there a lot of apartments for sale or are they in high demand?

If you’re still not sure whether or not you should buy an apartment, it’s a good idea to talk to a financial advisor or real estate agent. They can help you assess your individual situation and make a decision that’s right for you.

Invest in Property with Odin Mortgage

Odin Mortgage is a mortgage broker that specialises in helping Aussie expats and foreign investors purchase property in Australia. 

If you are interested in investing in property in Australia, contact Odin Mortgage. We can help you make the process as smooth and stress-free as possible.

Get a free Australian mortgage assessment today.

Apply online to get a free recommendation with real rates and repayments.

Frequently asked questions

Apartments are typically smaller than houses, so you may have less space for your belongings. You may also have less privacy, as apartments often have thin walls. 

Additionally, apartment owners are subject to the rules and regulations of the condominium association or homeowners association, which can be restrictive. 

There are many reasons why someone might choose to live in an apartment. Apartments are typically more affordable than houses, making them a good option for people who are on a budget. They are also often located in convenient areas, close to shops, restaurants, and public transportation. 

Additionally, apartment owners do not have to worry about as much maintenance as homeowners, as the landlord is responsible for the upkeep of common areas and major repairs. 

Finally, many apartments come with amenities such as pools, gyms, and laundry facilities.

Flats are typically smaller than houses, so they require less space. This can be a great advantage for people who live in urban areas or who do not have a lot of space.

 Additionally, flats are typically less expensive than houses, making them a more affordable option for many people. 

Finally, flats require less maintenance than houses, as the landlord is responsible for the upkeep of common areas.

A unit is a specific type of apartment, typically one that is part of a larger complex. Apartments, on the other hand, can be stand-alone buildings or part of a complex. In general, units tend to be smaller than apartments and have fewer amenities. 

However, they are also often more affordable. Apartments, on the other hand, tend to be larger and have more amenities. However, they are also typically more expensive.

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