22 Jul 2011
Whether you’re a first-home buyer or an investor, a common question asked in real estate is whether it is better to buy a house or a unit.
To answer this question first we need to look at the pros and cons of both property types.
Buying a house has its obvious advantages. Houses are generally bigger, and if you’re looking at it from an investment point of view houses are known to have a better, long term average growth rate than units. On the downside though, houses cost more to buy and they usually involve more maintenance.
Then there are units, apartments, and townhouses. The big advantage with units is convenience. Units are generally found closer to amenities, are easy to maintain and you don’t have to worry about mowing the front lawn. Units are also generally cheaper than houses, but still offer a high rental yield.
Of course the issue many find when buying a unit is the inability to expand, as well as having to abide by body corporate rules.
I think the decision really comes down to lifestyle. Not everyone requires a lot of space or a big backyard. Some people prefer an easy to manage unit, while others a large home with room to move.
At the end of the day, a decision about property type will depend largely on your individual circumstances. If you are planning a family, or you want pets and a backyard then a house is probably for you. If on the other hand you want convenience and low maintenance then perhaps you should take a look at units or townhouses.
It is also a good idea to consider the area that you plan on moving to. Some property types are more popular or common for certain areas, so have a talk to your local real estate agent to find out which type of property is the most suitable for you.