House vs Apartment - First Home Buyer Decision Guide

General information only — not financial advice. This content is intended as educational guidance. Consult a qualified financial adviser, mortgage broker, or legal professional before making financial decisions. See our full disclaimer.

For first home buyers, the decision between a house and an apartment often comes down to budget. The median price gap varies significantly by city:Sydney: Median house $1.4M vs median unit $800K - a $600K gap. For many FHBs, an apartment is the only realistic entry point.Melbourn

Frequently Asked Questions

Do apartments or houses make better first homes financially?

It depends on your market and time horizon. If a house is within your budget and you plan to stay 7+ years, houses typically build more wealth through higher capital growth. But if affordability is the barrier, an apartment gets you on the property ladder sooner - and time in the market usually beats waiting for the "perfect" property.

How much do body corporate fees typically cost?

Expect $800–$1,500 per quarter for a basic low-rise apartment without amenities, $1,500–$2,500 for mid-rise with a pool or gym, and $2,500–$3,500+ for luxury high-rises with concierge, pools, and extensive facilities. Always check the strata report for the actual levies and any planned increases.

Can I avoid LMI by buying a cheaper apartment?

If the lower apartment price lets you reach a 20% deposit, yes. For example, a $600K apartment needs $120K deposit to avoid LMI, while a $920K house needs $184K. Alternatively, eligible first home buyers can use the Home Guarantee Scheme to buy with 5% deposit and no LMI.

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