Apartment or house: which should I buy?

1. Apartment or house? The differences

For many, the idea of owning a house with a garden is the ultimate dream come true. But buying an apartment also has its advantages. If you are not sure which type of home suits you best, the following key points may help you decide:

Personal circumstances

Single-family houses are often located on the outskirts of urban areas or in the countryside, providing a peaceful and relaxing environment for you and your family. Freehold apartments or condominiums are frequently found in more urban locations and are better connected to public transport both for commuting and for leisure activities. Another advantage of apartments is that they are usually single-storey, making them easier to manage as you get older.

Costs

A condominium is not necessarily cheaper than a single-family home. In Switzerland, the median price for an apartment of 90 to 120 square metres is almost identical to that of a single-family house offering the same living space (as at 2021). It is 695,000 francs for condominiums and 700,000 francs for single-family houses (source: Comparis).

For building maintenance, you should allow at least 1% of the purchase price for both houses and apartments. Maintenance includes gardening, repairs and renovations. If you own a condominium, you will also have to pay administrative costs to the homeowner association.

Design freedom

Personal taste is a key factor when choosing a home to buy. With a new house, you have the opportunity to put your own stamp on the property, while with an apartment, you are restricted by the general plan.

Remodelling an existing house at a later date also gives you more options than you would have if you bought a condominium. Generally speaking, if you own a home, you can alter it whenever you like. This is less often the case if you buy an apartment. This is because many decisions require the consent of the homeowner association.

There is, however, an upside to having limited design freedom. When it comes to selling, it will be easier to find a buyer for an apartment because it is more standardized and less personalized than a house.

Time and effort

Have you decided to build your own house? If so, you should consider the time required for this. As a house builder, you are responsible for planning and construction – usually in conjunction with architects and construction companies – and must invest a corresponding amount of time in the project.

A freehold apartment is often ready to move into. You might be able to have a say in the interior design, but this doesn't require a huge time commitment.

The difference in time involved is more noticeable when it comes to building maintenance. As the owner of a house, you are solely responsible for all repairs. If you own an apartment, a caretaker usually takes care of any maintenance work. This is an important consideration, particularly in old age.

Risks

Before buying a property, it is advisable to take a close look at it. Aspects to consider include the likelihood of an increase in value and the presence of hidden defects.

When purchasing an apartment, watch out for planned renovation work such as to the roof or facade, which could be expensive. Such work is normally financed by a renovation fund. However, if this fund, which is contributed to by all co-owners, is insufficient, you should include the costs involved in the purchase price of the apartment.

A house can also have hidden defects, which only become apparent later. Making a claim against the previous owner usually entails significant legal work. It is therefore a good idea to have the building inspected by a qualified building specialist and to draw up an inspection report.

Privacy

Your  personal need for freedom and individual creativity is also a key factor when deciding between a house and condominium. A house gives you exclusive use of the building and land.

Your freedom of movement in a condominium is literally limited to your own four walls: use of the rest of the property, the garden and communal areas such as staircase, boiler room and laundry room is based on mutual respect between all co-owners.