A lot of people live in a flat when they’re younger. Most of the time, they’re renting until they can afford to get on the property ladder. When you’ve finally got the money you’ve saved up for your property together to buy a place of your own, not many people consider buying a flat. If you’re going to invest a lot of money in a place to live, you want as much space as possible so you can raise a family in the future.

But that’s not always the best option, especially for first time buyers. Even though you may not have considered it before, there are actually a lot of benefits to living in a flat rather than a house and it may be a better option for your first property. It’s not right for everybody, but these are some of the reasons that flats could be better than houses for first time buyers.

Price

The most obvious benefit is the price. House prices are so high at the moment and it’s a real struggle for first time buyers to find the money that they need to put a deposit down on a house. So, many young people are living with their parents into their late 20s and early 30s just so they can save money on rent and pull together the money that they need for a deposit. But if you’re looking at buying an expensive 2 bed house, it’s going to take you a lot longer.

If you take a look at the hdb resale price index and compare the cost of buying a flat with the cost of buying a house, you’ll see that the former is a lot more cost effective. You don’t need to worry too much about having enough space in the future because you’re more than likely not going to live in your first home forever. Your priority at the moment is getting on the property ladder and buying a flat is the easiest way to do that. When you get a bit older and start thinking about starting a family, you can sell up and move into a house, but for now, a flat suits your needs just fine.

Costs

First time buyers usually get a big shock when they realise just how much it costs to run a home. Many rental properties have bills included in the monthly rent so they don’t have a sense of just how much they’re going to spend on energy. Even if you’re paying your bills separately, the landlord is still covering the cost of maintenance. If your boiler breaks down or the washing machine packs up, you can just call them and they’ll get somebody out to fix it and cover the cost. But once you’re a home-owner, it’s up to you to pay those costs. Chances are, you won’t be able to afford a new build home if you’re a first time buyer which means you’ll have to buy an older property that is likely to need more regular repairs.

The more space that you have, the more work will need doing. That means that a smaller flat will be a lot cheaper to maintain properly than a house. A lot of the work, especially anything to do with the structure of the building itself, is still handled by the freehold owner of the building. Structural repairs are the most expensive home repairs, so you could be saving yourself a lot of money there as well.

As well as the cost of repairs, you’ll also save money on energy costs if you’re living in a flat rather than a house. The less space you have, the cheaper it will be to heat your home so the running costs in a flat are a lot less than a house.

Location

Location is one of the most important things when you’re choosing a property and often, it’s cheaper and easier to find a good location when you’re buying a flat. If you’re young, and you’re just starting your career, you’ll probably want a good city centre location. Somewhere near business hubs such as Park View City Commercial Downtown. It’s also good to be close to restaurants and bars etc. But if you’re looking for a house that is close to the city centre and within walking distance to all of those things, you’re really going to struggle. You might be able to find one, but the price is going to be way over your budget in most cases.

Alternatively, you may want to move for other reasons. Houses for sale in Jersey are popular. Having tax haven status and a beautiful island to match, this could be a perfect location for some.

Flats, on the other hand, are all over the place in a city centre. You’ll still have to pay a premium for the best locations but compared to the cost of a house in the same area, you’ll pay a lot less. There’ll also be a lot of cheaper flats on the outskirts of a city so you’re still well-placed as long as there are good public transport links, and you won’t need to spend that much.

Security

Security is a big concern for home-owners, especially if you’re living in the heart of a big city. In a house, you don’t have that much security beyond the measures that you put in place yourself. You may install security cameras which operate even at night. Lights and fences, among other things, can help you keep intruders out of your yard. When you’re away from home, though, you have very little protection.

Compared to a house, a flat is so much more secure. Often, they’ll have a gate you have to get through before you even get close to the building. Then they’ll have to get through the main doors of the building, make it to your front door and get through that as well. In a hallway with a lot of other flats, it’s going to be difficult for somebody to break in so you’re pretty safe in a flat. You might not be quite as safe if your flat is on the ground floor but even then, a flat is far more secure than a house.

Amenities

We’d all love to have a big house with a swimming pool in the back garden and a gym in the basement, but most people can’t afford that. However, a lot of flat complexes, especially the bigger ones, come with those kinds of amenities included. If you’re moving into a place that has all of these added extras, it is going to cost you a bit more than a normal flat, but compared to a house that has a personal swimming pool and a gym, it’s way cheaper. Even if you don’t move into a fancy flat with all of those things, you’ll still get access to communal washing machine facilities etc. which saves you money on buying your own.

Investment value

When you buy a property, you should see it as an investment. If you’re in a good financial position in a few years, you could even consider renting out your first property while you buy a second one. The rent from your existing property will be enough to cover the mortgage on that plus a little extra towards the mortgage on your new house. When you’re trying to rent out a property, you’ll have a lot more success with a nice city centre flat than you would a cheap house. If you don’t like the idea of keeping 2 properties and you’re going to sell up, a flat is still a better choice a lot of the time. It’ll be easy to find a landlord that wants to invest in a new flat so you can get a good price for it.

Living in a flat isn’t ideal for everybody and it probably won’t be enough space if you’re raising a family. However, if you’re a first time buyer, it could be your best option.

[disclosure*]