Top Considerations When Buying An Apartment

Apartment vs house

Purchasing a property is a decision which involves much planning, admin and research. If you’re considering buying an apartment, it’s worth spending time thinking over the apartment vs house debate. The key difference between buying an apartment and a house it’s that when buying a house you buy the freehold. It means that you will own both the building and the land, for an unlimited period.

When you buy most apartments, you are purchasing the leasehold title, meaning that there are two other parties involved including the managing agent and the landlord. It’s likely that you will have less maintenance issues to deal with when you choose an apartment. Apartments can end up as a better investment because of their higher yields. Having said this, if you purchase a house you will not incur service charges or ground rent. Once you’ve made the decision to purchase an apartment, there are several considerations to make.

1 . Start saving early

Once you’ve decided to buy a property, it’s advisable to start saving. The more of a deposit you can put down, the better. Perhaps you’re someone who finds it difficult to save money? If so, it’s a wise move to try using a finance app. There are many options for finance apps including ‘You Need A Budget’, ‘Good Budget’, ‘Mint’ and ‘Clarity Money’. All of these have different features but they work in similar ways. Financial apps like these will link together your accounts, debts and income. From here, you’ll be provided with a workable budget. Mint actually allows you to check your credit score, which is handy when you’re preparing to buy an apartment.

2 . Establish your budget

Once you’ve started saving, you should have an approximate idea of your apartment budget. It can be tempting to purchase the most expensive apartment you can afford, however this isn’t always the best decision! When you’re determining your budget you need to factor in all of your other expenses. The main thing is to apply for a mortgage that will allow you to live comfortably, without any financial stress. Generally speaking, your monthly mortgage repayments should not exceed 40% of your monthly income. Perhaps, you can check the rent price trends in Jacksonville, Florida so you will have an idea on the apartment prices and see if it suits your budget.

3. Explore the neighbourhood

Remember, you’re not just buying an apartment, you’re basically investing in a whole neighbourhood! It’s essential to conduct plenty of research, and spend enough time in your potential new neighbourhood. Think about which amenities you would like to be close to you, research the safety of the area and research the schools (if applicable). Buying an apartment is just one part of the lifestyle that you are buying into. It’s vital that you choose a neighbourhood that you can feel at home in.

4 . Consider the existing lease

When you buy a leasehold, you are purchasing the rights to live there for a set time frame. The value goes down as time passes, and it’s important that you understand exactly how long is left of the lease. Consider that many mortgage lenders require properties to have 70+ years remaining on a lease. With this in mind, if you purchase a lease with under 80 years left, it may be hard for you to sell in five- ten years time.

5. Check the service charges

You must consider the expenses associated with service charges and ground rent. Find out exactly what is covered in the service charges, and write down any questions you have. Ask whose responsibility it is to carry out maintenance of the communal areas. Services charges can vary greatly between one apartment and the next. Consider that these charges are recurring costs and opposed to just a one off. If you feel that the costs are too expensive, it’s unlikely that you will feel comfortable taking on this lease.

6 . Check the restrictions

Before you purchase an apartment you should check if there are any restrictions associated with living there. For example, can you have pets on the property? It’s also wise to check the parking situation and see what your options are. You’ll be allowed to revamp your home inside the apartment, however it’s unlikely that you can make changes to the building or gardens.

7. Determine additional costs

Before you take on an apartment you should figure out any additional costs. For instance, there may be charges associated with admin fees. Naturally, you’ll also have costs associated with paying your removal company and settling your final bills. You may also need to budget for any new items that you need for your apartment. It’s best to plan for all of these necessary costs now, so that your budget remains fool proof.

8. Quality of the building

When you are viewing the apartment building you should pay close attention to the communal areas. Poorly maintained communal areas is a bad sign from the very start. It can be easy to get swept up in viewing the apartment, and forget to pay close attention to the actual building. Take your time to look at every communal area in detail. Don’t be afraid to ask plenty of questions as you go. The building is essentially part of the package, so you’ll want to get things right here.

9. Building security 

Last up, it’s essential to consider the security of the building when you purchase an apartment. Which kind of security system is used? Do you feel safe and secure? Ask how regularly the security system is reviewed and if there are any planned updates. Bear in mind that you won’t be able to make changes to the security features, so you need to be happy with these. Small details like this really do make a difference when you are looking to find the perfect home.

Write up a list of must-haves before you start looking for apartments. It’s useful to have a clear idea of what’s most important to you. You might prioritise the neighbourhood, the number of bedrooms, or an outdoor space. Whatever your requirements are, it’s worth doing lots of research and shopping around to find a place that’s perfect for you.