Buying a house or an apartment both involve trade-offs. So which option is right for you?
Buying a house has pros:
Houses generally enjoy higher long-term capital growth than units
Houses have more space than units
You can do renovations to increase a house’s value
You don’t need approval from an owners corporation to make improvements
You don’t have to pay strata fees
Buying a house also has cons:
Houses cost more to buy than units
Houses cost more to maintain than units
Houses cost more to insure than units
Houses don’t have on-site facilities and may have fewer local amenities than units
For property investors, houses generally have lower yields than units
Here are the pros of buying an apartment:
Units cost less to buy than houses
Units cost less to maintain than houses
Units cost less to insure than houses
Units may have on-site facilities and more local amenities than houses
For property investors, units generally have higher yields than houses
And here are the cons:
Units generally earn lower long-term capital growth than units
Units have less space than houses
You can’t do renovations
You’re restricted in the renovations you can do to increase a unit’s value
You need approval from an owners corporation to make improvements
You have to pay strata fees
To discuss your options, whether you want to buy a house or unit, call us on 1300 635 235.