An apartment is the first rung on the property ladder for many first home buyers, especially those priced out of a freestanding or attached house in Australia’s priciest capital cities.
But when the needs of a growing family prompt an upgrade to a larger home, the question of whether to keep the first property as an investment may arise.
On the one hand, the sale of a sound investment too early risks potential future gains from holding onto the home as a rental, and increases the impact of transaction costs such as stamp duty and selling fees.
On the other hand, selling and realising equity in the first property and investing the proceeds into a more valuable asset can allow buyers to live in a better home that brings lifestyle improvements.