Apartment living is growing in popularity across our major cities, with the average asking price for a unit in Wellington rising to 16 percent and units in the Bay of Plenty up 27 percent in the last year. Of course the national housing shortage is a major contributing factor to this, pushing many people to their stance on apartment living.

That said, apartment living is still a relatively new concept for New Zealanders, so many apartment owners and potential buyers are still unaware of some of the most fundamental aspects of apartment ownership. Whether you are thinking of buying or selling - the list below will help you decide if apartment living is for you; and ultimately your next step. 

The advantages of apartment ownership

Lifestyle

Apartments offer a great alternative lifestyle. They are typically in the middle of a bustling city with a whole host of amenities only a short walk away. Public transport is generally more established within city centres and inner city suburbs, meaning occupants become less reliant on cars, thus saving on parking, fuel, registration fees and repairs. If you choose wisely you might even be able to secure an apartment in a building that includes a communal gym, swimming pool, and courtyards—all of which come together to provide a good social atmosphere.

Affordability

In financial terms, apartments are also a great way to enjoy the city life and save money. A smaller space costs less to heat and cool. Also, the more modern an apartment, the more energy efficient it will be. Because a two-bedroom apartment generally costs less than a two-bedroom house, your mortgage shouldn’t be as large, providing you the opportunity to buy and live in a more up market location.

Low maintenance

When it comes to apartment living,  the responsibility of maintenance is generally taken care of by the body corporate, including insurance, central air conditioning, refuse collection and security—apartment owners don’t even have to get their hands dirty if a pipe leaks.

The disadvantages of apartment ownership

Privacy

On the other side of the coin, living in an apartment in the inner city often comes with less space and privacy. In fact, an inner-city apartment has only half the privacy of owning your own house. While people generally can’t see in from the street, people in surrounding apartment or office buildings are another story.

Noise

In addition to having to cope with  the noise that comes with higher-density living, apartment owners also have to contend with traffic and neighbour disturbances. In many cases inner city living is not classed as a residential zone, meaning that ‘acceptable’ noise levels are a lot higher than many suburbs.

Restrictions

Living in an apartment building, does come with certain restrictions that are generally governed by the body corporate. Some buildings have restrictions regarding what can be hung on walls, which requires mirrors and other wall art to be hung using a specific method. Others do not allow smoking in any outside areas including apartment balconies.

Ownership structure

Is your apartment leasehold or freehold? Freehold means you own the apartment and have joint ownership of the surrounding land, while leasehold simply means you own the apartment and lease the land. The owners of leasehold apartments are required to pay a leasehold fee or ground-rent. Plus, as land values increase, the leasehold fee or levy will increase too. When buying or selling a leasehold apartment, check how much time is left on the lease and what the options are when it runs out.

Apartments certainly offer an affordable and social lifestyle, but there are downsides like a lack of privacy, unanticipated fees and the uncertainty that comes with new high rise developments. As always, it pays to look at all your options and both sides of the coin before settling.

For more information and tips about the ins and outs of apartment living download our free guide: