Should I buy a low rise apartment?
I know these get posted all the time, but I'd like to hear others thoughts on my particular situation.
* Age: 29
* Current income: 150k before super, but this is a unique shortish term role (at least another 12 months, up to another 2 years) and my market value is probably more like $115k
* Cash available by settlement: 100k + 60k gift (only for property)
* Relationship status: 6 months in. She has ~200k cash and we've talked about buying together in a couple years, if things work out. If I buy now she will likely move in with me and pay rent.
My family and friends all live in the mid-outer east Melbourne suburbs.
I will likely need to commute to the city a couple days a week in the future.
I have been given a fully assessed pre-approval for $630k loan.
I'm currently looking at high quality 2br apartment inner/mid south east 2 min walk from the train station, shops, parks, in a 2 storey building, with a private garage, for ~650k. Door to city in 20min. Alternatively, I could get a freestanding unit but be 45+ min from the city, whilst needing to drive to a station and everything else.
I was initially thinking of the freestanding unit for more space and to ensure capital growth so I don't get priced out of upgrading to a house later, but looking at the historical prices, even freestanding units don't seem to have grown much. So I'm not sure they're all that much better than a good quality apartment with connectivity. It's like the only way to get capital growth and this price point is to get a house an hour away. No thanks...
What would you do in my situation? I feel like using my pre-approval to get in the market now and aggressively offset the apartment is a good way of locking in housing, before my income likely drops.