Should I buy a house or a unit?

Buying a property is one of the biggest financial decisions you’ll ever make, and it’s one that requires careful consideration. So, what is best, a house or a unit?

Whether you’re a first-time property investor or you’re adding to your investment portfolio, one of the most important decisions you’ll make is whether to buy a house or a unit. In Australia, there are pros and cons to both options, and in this blog post, we’ll explore them in depth so that you can make an informed decision.

Investing in a house for your next investment

When most people think of property investment, they think of houses. Houses offer a lot of advantages, including:

1. Space – Houses are typically larger than units, which means there’s more space for you and your tenants. This is especially important if you’re planning to rent the property out, as tenants are often willing to pay more for a house with multiple bedrooms and bathrooms.
2. Outdoor space – Houses typically come with a yard or garden, which is perfect for families or tenants who want to spend time outside. This can be a big selling point, especially in suburban or rural areas.
3. Resale value – Houses generally appreciate in value faster than units, which means you can make more money when you sell the property in the future. This is because houses are often seen as a better long-term investment than units.

However, when deciding between a house and a unit there are also some disadvantages to buying a house. These include:

1. Maintenance costs – Houses require more maintenance than units, which can be expensive. This includes things like landscaping, roof repairs, and general upkeep.
2. Higher purchase price – Houses are typically more expensive than units, which means you’ll need a larger deposit and a higher mortgage. This can be a barrier to entry for some investors.
3. Location – Houses are often located further from the city center, which can be a disadvantage if you’re looking for a property that’s close to amenities like shops, restaurants, and public transport.

The pros and cons of choosing a unit for your next property investment

Units, also known as apartments or condos, are another popular option for property investors. Units offer a range of advantages, including:

1. Affordability – Units are often more affordable than houses, which means you can get into the property market with a smaller deposit and a lower mortgage.
2. Low maintenance – Units require less maintenance than houses, as the body corporate is responsible for maintaining common areas like gardens, hallways, and lifts.
3. Location – Units are often located closer to the city center, which can be an advantage if you’re looking for a property that’s close to amenities like shops, restaurants, and public transport.

However, there are also some disadvantages to buying a unit. These include:

1. Space – Units are typically smaller than houses, which means there’s less space for you and your tenants. This can be a disadvantage if you’re looking to rent the property out.
2. Outdoor space – Units typically don’t come with a yard or garden, which can be a disadvantage for families or tenants who want to spend time outside.
3. Resale value – Units generally appreciate in value slower than houses, which means you may not make as much money when you sell the property in the future. This is because units are often seen as a riskier investment than houses.

So, should you buy a house or a unit? Ultimately, the decision comes down to your personal circumstances and investment goals. If you’re looking for a property with more space, outdoor areas, and higher resale value, a house may be the better option. On the other hand, if you’re looking for an affordable property with low maintenance and a good location, a unit may be the way to go.