With property prices touching the sky, an increasing number of people are opting to live in apartments.
Living in an apartment is cheaper and a lot less hassle than living in your own home.
While nothing can beat the sense of ownership you feel when you live in a house, you can’t deny the perks of apartment living either.
But recently, we’ve seen that apartments have become quite expensive too. Do you want to know why? Continue reading ahead for the answer.
Why Are Apartments So Expensive?
Over the past few years, we’ve seen a trend of increasing apartment prices.
While one of the many benefits of living in an apartment was lower costs, it seems like good apartments are going beyond affordability too!
Do you want to know why apartments are so expensive today? We’ve listed down some factors that account for higher apartment prices.
Better Location, More Rent/Cost
The location is one of the biggest factors that account for the cost of apartments. Apartments situated near the metro are more expensive than those in the suburbs.
Apartments situated in an area with a tourist attraction or active nightlife are also more expensive.
Most offices are located in urban areas, and people prefer to live in apartments in urban areas over those in the suburbs or rural areas because it cuts down the cost of commuting to work every day.
Since living in an urban area means everything you need is easily accessible, from grocery stores to shopping malls to the metro, you can expect the apartment cost in urban areas to be higher.
Higher Cost of Land
The best apartments are the ones that are located in prime spots of the city. By prime spots, we mean a location where everything is easily accessible.
It shouldn’t come as a surprise to you, but if an apartment complex is located in an area whose demand is high, the cost of the land on which the building is built will be high too.
The builder has to pay a high price to obtain land in the most attractive spots in the city where all the utilities and facilities are easily accessible.
When a builder has to pay a higher price for the land, they’ll naturally keep the rents of their apartments high too.
So, another factor that adds to the cost of an apartment is the cost of land.
If you want an apartment close to work, recreational spots nearby, and active nightlife, you can’t complain about the higher apartment cost!
Some landlords offer facility bundles with the rent. It means the rent you’re paying isn’t rent alone. Instead, you’re paying for multiple facilities with the rent.
Some landlords include the cost of basic utilities like electricity and water with the rent. This automatically makes rent higher.
Some landlords also include the cost of other facilities in the rent like trash collection and building cleanliness costs.
If you’re living in an apartment that’s located at an attractive location and the rent includes the cost of basic utilities and facilities, the rent will be higher, of course.
If you aren’t willing to pay higher rents, you should look for apartments where you’ve got to pay for the rent only.
But if you look at it from a wider perspective, the cost of utilities will all add up to make the total amount payable every month quite high!
Some landlords also add the cost of internet to the rent, but that’s rare. The more the number of facilities included in the rent, the more expensive the apartment will be.
Amenities and Facilities
As we said earlier, living in an apartment allows you to enjoy better amenities and facilities like a swimming pool and gym.
But that doesn’t come cheap. Although it’s cheaper than having to build your own swimming pool, facilities like these add to the cost of the apartment.
Apartment complexes with modern amenities and facilities like swimming pools and fitness centers are usually more expensive.
Since these amenities are available for use for all the tenants, the tenants have to pay for their upkeep. The cost of regular maintenance and upkeep of these amenities is included in the rent.
This is the reason why modern apartment complexes are so expensive today!
One of the biggest benefits of living in an apartment is that maintenance and repair work is less of a hassle.
If anything breaks in your apartment, you don’t have to worry about getting it fixed on your own or paying for it out of your pocket. The landlord will pay for all of it.
But if you think you won’t have anything to do with the maintenance and repair costs, you’re highly mistaken.
One of the reasons why apartments are so expensive is the fact that the rent includes the maintenance costs as well.
A landlord isn’t running social services that they’ll keep paying for the damages your practices are causing. Landlords are smart and ensure their security well in advance.
Salaries of the Staff
An apartment complex isn’t like an independent house where you pay for your own house help and security guards.
Apartment complexes have a lot of salaried staff members like the receptionist, security guards, gardeners, cleaners, etc.
All the staff needs to be paid, and the only source for their salaries is the rent from the tenants.
This means that the rent that you’re paying also includes the cost of the staff of the apartment complex. This is another reason why apartments are so expensive.
When living in a house, you can choose not to keep a gardener or security guard. But when you’re living in an apartment, you really don’t have a choice. You’ve got to pay the rent every month.
Apartments that are priced lower often have a lower quality of building materials used in the construction. Even the finishing materials used are of lower quality.
For example, cheaper apartments use fake or synthetic wood for finishing instead of real wood.
Apartment buildings that use high-quality building and finishing materials are more expensive. The builder recovers the cost they paid to build the building through higher rents.
In the case of apartments, you literally get what you pay for. The higher you pay in rent, the better facilities, and quality of apartment you get!
Expensive apartments will have real wooden floors, marble counters, modern light fixtures, and modern state-of-the-art bathrooms. Expensive apartments are usually luxury apartments that you wish for!
Most people living in apartments take parking facilities for granted. If you live in the main city, you’ll very well know how difficult it’s to find a good parking spot.
If there’s parking available for your car in your apartment complex, your builder might be paying for the extra space. And where do you think the builder’s getting the money from? Your rent.
The higher rent that you’re paying covers the parking
Benefits of Living in an Apartment
An increasing number of people are turning towards apartments. One of the biggest reasons for this is affordability and convenience.
However, these 2 reasons can’t be the only ones contributing to the massive popularity of apartments today.
There has got to be more to apartment living than just affordability and convenience.
You’ll be surprised to know that there are numerous benefits that living in an apartment offers. You might not have even thought about some of these!
Cheaper and More Financially Feasible
Renting an apartment is a lot cheaper and more financially feasible than buying your house on full payment or on a bank loan and financing.
You just have to pay a monthly rent, which is usually lower (and a lot less stressful) than a mortgage.
When you live in an apartment, you often pay for the basic utilities like electricity and water with the rent, which makes it a more financially attractive option than buying a house.
No Maintenance Hassle
Another major benefit of living in an apartment is lower maintenance costs. When you live in a house, you have to take care of all the repairs and maintenance work yourself.
However, when you’re living in an apartment, the responsibility of maintenance and repair falls onto the shoulders of the homeowner or landlord.
You just have to inform your landlord what work your apartment needs, and it’s their responsibility to get it done on time.
Apartments are usually equipped with better amenities and facilities. You can add any amenities in your house as you like, but that will require you to spend money.
As in the case of apartments, the amenities come pre-installed, and you get everything you need at a much lower cost (the rent).
For example, if you want a swimming pool or the latest dishwasher in your home, you’ll have to spend money to install these amenities.
But when you decide to live in an apartment, you can look for an apartment with all the facilities you want.
Some apartment complexes also have a gym that the residents of the complex can use.
The rent of these complexes may be higher, but the overall financial impact is still less than the mortgage.
Living in apartments is safer. Most homeowners have to install security systems in their houses to ensure safety and security.
But when you’re living in an apartment, all the apartment units are enclosed by a boundary with guards, and the close proximity of the neighbors offers a greater sense of security as well.
Sense of Community
Another benefit of living in an apartment is the sense of community.
Unlike independent houses, residents live close to each other. They can meet and greet each other during the day.
You can enjoy the feel of living in a closely-knit community. You’ll never feel alone or feel like you’re living on your own when living in an apartment.
Also read: What Does An Apartment Community Mean?
Modern apartments are expensive, but they’re expensive because of a good number of reasons. They’re located at attractive locations, offer plenty of amenities and facilities, and feature better quality building and finishing materials.
Above all, modern apartment complexes offer a higher sense of security and relaxation. You can enjoy peace of mind, knowing that all repairs and maintenance work will be well taken care of.
In short, the higher rent that you pay offers comfort, peace of mind, and relaxation, making these expensive apartments worth the money!
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