No matter where you go, one of the primary essentials in life is a place to live. Without a roof over our heads, it’s difficult to imagine surviving for long periods of time.
Traditionally, we’ve always associated a long-term place to live with a house, so much so that it is exactly what the phrase “roof over our heads refers to. However, with limited space for houses in modern cities, it is increasingly difficult to afford one. Hence, people are now starting to look at owning apartment units as a better investment instead.
When you own an apartment unit (whether you reside in it or not), you are a part of what is called a strata scheme. Under a strata scheme, an individual owns only a certain room or unit in the apartment building. The common areas in the building are owned by a strata corporation, of which all individual unit owners are members. The strata corporation is then responsible for the maintenance and management of the building proper.
While some may be initially disappointed with owning just a small room that is technically hanging in the air, as opposed to a piece of land, there are many upsides to being a part of a strata scheme. Here are some of them:
Lower costs of living
Given that you are “sharing” a small piece of land area with many other people, the cost of owning a unit is likely to be a fraction of that of a house. Furthermore, if you do not even need the multiple rooms that a house offers, then you can actually save money that you would otherwise be spending on furniture, electricity, and maintenance of these other rooms. All in all, being a part of a strata scheme offers both a lower entry price and staying price.
Reduced need for maintenance
Similar to homeowner’s associations, members of a strata corporation are required to make regular payments that go towards the maintenance of the building. Having common areas can go a long way in terms of reducing concerns over maintenance. For one, the only area you have to be concerned about is your own unit, which is much smaller in area compared to a house. In case of a power outage, your building is also likely to have a backup generator that is covered for by building management, which allows you to enjoy some power, whereas those in houses would be left in the dark.
Higher likelihood of rent
Apartment buildings are much more likely to be clustered near urban centers, where there is a great deal of employment and activity. Hence, residences in these locations are in high demand. Thus, even if you decide to move back to a house, it is a great idea to keep ownership of your apartment unit and have it rented out. By doing this, you can earn a decent, steady income on the side and be in ownership of something that is only going to appreciate in value.
Getting used to the idea of owning an apartment unit rather than a house may take some time. However, it cannot be denied that in this modern world, an apartment unit may be a better investment. Given this, it might seriously be worth considering saying goodbye to gates and fences, and hello to common property and the strata corporation.
