House or Apartment: Which is better for your lifestyle & mortgage?

A recent article on Australians suggested that Australian home buyers were more interested in an apartment or a townhouse than in a quarter acre block. The great Australian dream of owning a quarter acre block no longer exists because the blocks aren’t there to buy any longer.

Maybe that’s just as well that people no longer hanker after the old quarter acre lot,  because the quarter acre block disappeared about twenty years ago.
Block sizes have gone down from 1,000 sq metres [quarter acre] to 800 sq metres in the 90's , to 640 sq metres up to about 5 years ago.
Now estates offer about six lot sizes, most of which are 448 sq metres [courtyard home blocks], or smaller going down to 300 sq metres. That’s less than half the size of the old house blocks we once knew. And you do have to build over 40 kilo-metres from the city to find a block these days.
A recent report suggested that over 50% of those that responded would prefer a townhouse or apartment in an area they found desirable. I have no idea of the gender, the incomes or the ages of the respondents, but I guess you would ask young people that sort of question would get a loaded response to.
There is no doubt in my mind that many young people today are more socially connected, more desirable of inner city lifestyles and being part of the cafe society.
There are equally large numbers of young people that are living longer with their parents in order to minimise living costs and save a deposit for their own place.
We also need to look at the person. Were they single of married, or with children. I can’t imagine anyone wanting an apartment over a single home on a block of land.
If I were a young person, I would want to live near work, education, entertainment and social hubs, so it would make sense that an apartment or townhouse would be the most available property to own near these.
However once you want to settle down and start a family I fail to see the attraction of an apartment, when a house on a block even smaller than half the old quarter acre block offers so many advantages.
And whilst commuting to work then becomes a big negative, the cleaner air, quieter spaces and a patch of ground to call your own would have the biggest pull.
In other words, it makes sense to rent an apartment rather than buy, till you are ready to start a family. Apartments don’t seem to offer the same capital appreciation as a house and land does, nor does allow the freedoms and space that growing families, belongings and pets need.
Given that the average first home buyer is around 36 years old, that seems to be the trend. So asking a twenty year old where they want to live given their income and housing costs is a mute point. They are unlike to buy a home in any event at that age. And their views on housing reflects their current needs, which can change in the time it takes to read this article.
About HomeMate:
Rick Adlam [HomeMate] has been working in the homebuilding since 1985 as a new home consultant with Iconic builder AV Jennings. He has also worked in home design consultancy with Dixon Homes, VillaWorld, Galaxy Homes, Merlin Homes, Simonds Homes, Award Homes and Orbit Homes. Rick currently consults in the development of Mr Mortgage for mortgage brokers and HomeMate for new home buyers