Is It Better to Buy an Apartment or a House First?
If you’re trying to crack into the Melbourne market, one question pops up fast:
“Should I buy an apartment or a house first?”
It’s a good question — and the answer depends on your budget, goals, and lifestyle.
At Nude Home Loans, we help first home buyers think strategically, not emotionally.
Here’s how to weigh the options.
🏢 Why Buy an Apartment First?
✅ Lower Price Entry
Apartments are often $100k–$300k cheaper than houses in the same suburb
Lower upfront costs = lower deposit needed
✅ Great for Inner-City Living
Suburbs like Brunswick, Footscray, and Southbank are packed with apartment options
Perfect for young buyers who want cafes, culture, and commutes
✅ Less Maintenance
Body corporate takes care of the external stuff
Ideal if you’re not ready to mow lawns just yet
❗ Downsides
Slower capital growth than houses
Strata fees can add up
Some banks are stricter on high-rise buildings or studio-sized apartments
🏡 Why Buy a House First?
✅ Land = Long-Term Value
Houses come with land, and land = growth
Historically, houses outperform apartments for capital gains
✅ More Space to Live and Grow
Great if you plan to start a family or work from home long-term
Easier to renovate or extend in future
✅ More Borrowing Flexibility
Lenders generally prefer lending on freestanding homes
Fewer issues around valuations and resale risk
❗ Downsides
More expensive upfront
Bigger deposit usually required
Maintenance and rates are higher
🧭 How to Decide What’s Right for You
Ask yourself:
Where do I want to live for the next 3–5 years?
Do I want lifestyle (apartment) or space (house)?
Is this home for me or to grow equity and upgrade later?
Sometimes an apartment is the stepping stone to your dream house. Other times, it’s smarter to stretch a little further for the bigger long-term win.
🏘️ Example Suburbs
Suburb | Apartment Entry Price | House Entry Price |
|---|---|---|
Footscray | ~$450,000 | ~$850,000 |
Werribee | ~$420,000 | ~$620,000 |
Thornbury | ~$550,000 | ~$1,000,000 |
Sunshine | ~$480,000 | ~$730,000 |
Prices shift often — we help you explore your options in real-time.
🏠 Real Example: Amy in Thornbury
Amy thought she needed to wait until she could afford a house. But after running the numbers, she realised:
A two-bed apartment was achievable now
It let her stay close to work and friends
She’d build equity faster than if she waited
Now, she’s planning to upgrade in 3–4 years — with a smart loan and rising value behind her.
“I thought I was settling — turns out I was starting smart.”
✅ Let’s Build Your First Home Strategy
We’ll help you:
Compare house vs apartment options in your budget
Model growth and resale scenarios
Find lenders who support your property type
👉 [Book a free first home planning session with Nude Home Loans]
We’re not just about approvals. We’re about the big picture.
