There are two types of people: those who prefer living in an apartment and those who love living in a home. So which is better? When choosing between buying an apartment or a home it all depends on your finances, your lifestyle and your property goals.
While some people prefer the space and flexibility of living in the suburbs, others favour the convenience of inner-city living. From price to space and maintenance requirements, both homes and apartments have several pros and cons. If you’re buying a property for investment purposes this becomes a whole different question, depending on your strategy as an investor.
Buying a House
Pros:
- Floor space: Houses offer more space compared to apartments especially for a family.
- Outdoor space: If you like gardening or have children, a backyard would be perfect and Homes offer this.
- Flexibility: When buying a home, you are buying the freedom to do whatever you like. As long as you keep building regulations in mind, you can expand or upgrade the house, adding value and making the place more livable.
- Privacy: Another benefit of buying a home instead of an apartment is that you’re generally not living in as close proximity to your neighbours. So you can enjoy your life without having to worry about disturbing your neighbours or being disturbed by them.
Cons:
- Maintenance: Grass needs to be cut, grounds need cleaning, windows need washing and fence needs to be maintained. Buying a home means you will need to take care of everything.
- Higher costs: You have more bills to pay despite not paying the rent. You have more things to buy and the maintenance is costly.
Buying an Apartment
Pros:
- Affordable: Apartments are relatively cheaper than homes as you are buying together with land.
- Less maintenance: You don’t have grass to cut or windows when you buy an apartment. All maintenance is looked into by the owner or manager meaning you have free time to do other things.
- Lower cost: while there is less space it results in cheaper bills.
- Extra amenties: Some apartment complexes have swimming pools or children playground. In addition, apartments are built near city centres, schools and restaurants.
- Security: Thieves will have to pass through a lot of security before getting to your apartment which is not the case of some houses.
Cons:
- No owner rights: By buying an apartment, you have to abide by the rules imposed by the owner. If you want to renovate your apartment you need to seek approval first.
- Fees: You have to pay for maintenance or garbage collection. Hence, take this into consideration when buying an apartment.
- Less space: Apartments don’t offer as much living space as houses.
- Less privacy: Apartments hardly have privacy. Your neighbour may hear all that happens inside your apartment. Additionally, you do not have outdoor privacy. Thus when you are buying think of this.
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Do Homes or Apartments make better Investments
If you’re planning to invest in property the apartment versus house question looks quite different. And it comes down to your strategy and goals.
Rental income
All other things equal, a house will bring in more rental income than an equivalent apartment. But possibly not as much as the extra purchasing cost, given that houses sell at much higher prices. If you’re looking to maximise rental income while minimising expenses then an apartment might be a better fit.
Capital growth
Most investors are focused on making capital gains, which refers to the growth in value of the property. In Kenya’s market, many properties have doubled in value over the years. This investment strategy has been a goldmine for some Kenyans and has played a large role in fuelling the recent property boom.
It’s clear, homes show much stronger capital growth than apartments. The majority of Kenyans prefer houses, and owning land is seen as more valuable than owning a unit of an apartment complex. But this is slowly changing as more and more Kenyans live in apartments.
Related: Investing in Real Estate: A Goldmine of Riches
House vs apartment: making your decision
Regardless of whether you live in the house or an investor, the best way to solve the apartment vs home dilemma is to consider your needs and plan ahead. For example, if you’re starting a family, is an apartment really the best option? On the other side, if your children will most likely leave home in a few years, is a massive five-bedroom house the best solution?
Once you know what you need in a home or an investment both now and into the future, you’ll be able to decide whether an apartment or a home is right for you.
