Apartment or house… what’s the right choice with bad credit?

Rapid Finance on 7 January 2016

And how to find the right bad credit home loan

There are so many things to think about when purchasing a property. “Should I buy a house or an apartment?” is just one common question that prospective bad credit home buyers are asking. But the choice really comes down to your unique situation – what you can afford and whether it matches up with your goals for the future.

Here, we help you weigh up the decision between a house or an apartment if you have a bad credit history. There are many more questions we can help you with, including finding home loans and bad credit home loans.

Visit our Resource Centre for more information, or call our home loan team on 1300 467 274.

Weighing up the pros and cons of apartments – some things to think about



Less available space

Location and choice

Potential noise issues

Serviced amenities and facilities

Dealing with strata/body corporate

Higher security

Privacy considerations

Lower maintenance


Apartments in detail

  • Price. Property prices vary across states, suburbs and streets, and will change over the course of the year. But in most cases an apartment will cost less than a house. This reduced cost will impact on the size of the home loan you will need. So, review your budget, deposit and strategy to determine whether or not an apartment is the most realistic option for you.
  • Space & location. An inner-city apartment will look a lot different to a suburban house. Along with the lifestyle implications, you can expect that a house will have extra space to grow – an important consideration for many families. However, the availability of new apartments in many inner-city areas will mean that there are plenty of choices available for those seeking apartment living.
  • Body corporate/owners corporation. When you purchase an apartment you are normally entering into a strata agreement. This means that in addition to owning a piece of the entire building, you also have a share in the common property of the complex. However, any changes to your apartment, including changes to its appearance, will need to be approved by a body corporate or owners corporation. Sometimes even the furniture on your balcony is subject to body corporate rules!
  • Sharing. If you purchase an apartment you'll need to get used to sharing. Many apartment blocks come with excellent facilities – BBQ areas, spas, pools and gyms. But be prepared to share. Apartment living also comes with some drawbacks, including the occasional noisy neighbour and awkward conversations in the elevator!
  • Maintenance. The body corporate will handle the maintenance and upkeep of your apartment complex. On one hand, this means that there are no gutters to clean and no lawn to be mowed. Instead, you'll pay a fee for these services to be completed by professionals. If a body corporate is poorly managed, however it could mean that this money gets wasted on superfluous upkeep, leaving little left over for urgent repairs or maintenance when they're really needed.

Property Myths: investing in an apartment

melbourne apartments in the city

The conventional wisdom often passed around is that houses make a better investment than apartments. But this is not always the case. Any property – apartment, unit, town-house or house – is exposed to price changes, risk and fluctuations in investment returns.

A good investment is one that is within your budget, matches your appetite for risk and offers a reasonable return. Both houses and apartments can fall into this category, depending on who you are and what home loan is available to you. Although houses often provide greater returns over time, apartments are usually more affordable and are often located in high growth areas.

Getting started in property investment

Example Case Studies: House or Apartment?

John & Suzie

John and Suzie have been married for six years. John is a physiotherapist and commutes to work in his own car. Suzie, a part-time receptionist, is about to take maternity leave and has a car of her own to get around.

For years, they have been renting an inner-urban house, but with a toddler and another baby on the way they are thinking about their future. Their main concerns are space, access to schools and parkland, as well as being part of a friendly community. Unfortunately, a previous bankruptcy is making their search for finance difficult.

John and Suzie have a growing family, which has inspired a search for a more family-friendly lifestyle. In their case, owning a house would match their goals: space, privacy and long-term stability. Their focus is on the future and being part of a community with space to grow.

Balancing these goals with the right home and home loan can be tricky, especially if they are on a budget and have bad credit history. But finding the right bad credit home loan is possible if they seek out the right home loan advice.

apartment interior


Taylor is a young professional who loves her faced paced career and the lifestyle it brings: wining, dining and socialising at all the latest inner-city bars and restaurants. She doesn't want to slow down, but she does want to start building her personal wealth and stability.

She figures it’s about time she invested in a place of her own; an inner-city property near her favourite suburb. However, she knows her credit history isn't perfect, so she begins looking for bad credit home loans that match her financial situation.

Taylor’s vision for the future is all about growing her career and enjoying a city lifestyle. She doesn't seem to be thinking about starting a family, and her single income means that anything too pricey is out of the question.

She is more suited to an apartment than a house, provided she can balance her lifestyle with managing a home loan. She may want to speak to a bad credit home loan specialist about her bad credit history.

Start your journey to home ownership. Find out more about bad credit home loans.

Rapid Finance are financial specialists who match you with a suitable home loan, including bad credit home loans. Our team looks at your financial situation and will recommend home loans in-line with your circumstances.

From home loans to bad credit home loans, our team can help you on the path the finding your new property – whether that is a house or an apartment.

Talk to a finance specialist today on 1300 467 274 or find out more about bad credit home loans here.