What Type Of Property Should You Buy In Australia: Houses vs. Townhouses vs. Apartments?

According to the Australian Bureau of Statistics, over the last 12 months, property prices have grown by 16.8%. With the rise of property prices, the choice of the right property also becomes a little more crucial and difficult. Hence, before finding the right property for your investment, it’s important to explore the different types of properties.

Properties In Australia

Whether it is your first time buying property in Australia or you are a seasoned real estate investor, it is crucial to do your research. For first-time buyers, you should have the objectives and priorities clear. 

The types of property in Australia can be mainly divided into houses, apartments, and townhouses.

Houses

Houses are the traditional and most popular stand-alone dwelling in Australia. When you buy residential homes, you are purchasing the land on an individual title.

In 2016, about 72.9% of the population was living in houses. Houses provide a lot of flexibility and privacy, but it comes with their drawbacks too.

Benefits Of Houses

A house offers you a large amount of space along with privacy, flexibility, and customization options for your property. It is a great option for people having large families and a big budget.

1. More Space

Houses generally offer a lot of space compared to apartments or townhouses due to the minimum block sizes set by the government.

2. Outdoor Space

Most houses have a front or back garden/ backyard, which is not the case with apartments or townhouses. The outdoor space can have multiple uses like gardening, entertainment, relaxation, etc. The kids can roam around, and you can even install a pool if you want.

3. Privacy

You get more privacy with houses, as you are not sharing common areas or living close to your neighbors. As a result, you do not get disturbed by your neighbors and live in peace as well.

4. Flexibility

Being the sole owner of the title brings a lot of flexibility and freedom. You do not have to abide by the bylaws that generally townhouse and apartment owners follow.

5. Better Resale Value

The resale value of houses generally appreciates more than those of townhouses or apartments. Lenders also easily lend you more money when purchasing a home.

Drawbacks Of Houses

The houses can be pretty expensive both in terms of the upfront cost of buying and maintenance costs. There should be enough capital for not only buying but also maintaining the property.

1. High Price

Houses are generally more expensive than apartments or townhouses due to the more space they provide. It can be an entry barrier for some buyers.

2. Excessive Maintenance

A house is so spacious and having lots of amenities requires constant maintenance. You would have to maintain the gardens, sewage, drainage, cleaning, and many more. You can do it yourself if you wish or hire professionals that will add to the cost.

3. Costlier Bills

Houses being larger require more resources, whether it is for maintaining temperature or general plumbing. It results in higher utility bills overall as compared to apartments or townhouses.

Townhouses

A townhouse is similar to a house. It is a multi-level building that offers space and privacy as well. They also often have front and backyard just like houses but usually smaller.

It differs from houses in terms of ownership. Unlike home ownership, in townhouse ownership, you only own a strata title and share a particular land with others.

Benefits Of Townhouses

Townhouses offer you more space for your money than apartments, and they are cheaper than a house. It is a middle ground between affordability and space. A family can opt for the townhouse if on a budget.

1. Space

Townhouses have more space than an apartment due to being two or three stories. The space provided is in between houses and apartments. It can be suitable for people who want a larger area at an affordable price.

2. Privacy 

Townhouses are designed similarly to a house to provide privacy to their residents. They do not have any shared areas, and there exists just one common wall. 

3. Flexibility & Freedom

Unlike houses, you have some restrictions in townhouses. There are bylaws in place, but those bylaws are mostly more relaxed than the bylaws of apartment complexes.

4. Price 

Townhouses are more affordable than houses. Buying a house in a competitive locality can cost a lot more than a townhouse.

Drawbacks Of Townhouses

Unlike houses, you would not get as much space and customization options in townhouses. You have to share the land with other owners and follow the bylaws as well. 

1. Space

A townhouse offers less space than a house. If you have a large family, then it may not be the right choice for you.

2. Price

If you are on a budget, the townhouse is not the most affordable option. It is more expensive than an apartment. On top of which you also have to pay maintenance expenses and upkeep fees for common areas.

3. Uniform Structure With Customizations

Townhouses are often constructed with the same layout and design as the other buildings in an area. This may make people feel that their houses lack individuality. Although you can customize your interiors, it isn’t as customizable as a house.

4. Privacy

You would have less privacy in a townhouse when compared to a house because you are sharing the same land with other owners. 

5. Resale value 

The resale value of townhouses is usually less appreciated than a house. So a townhouse may not be as good as a house for investment.

Apartments

An apartment is a smaller accommodation as compared to a townhouse. When you buy an apartment, you share the ownership with the different owners. Generally, there will be a body corporate as well that will make the bylaws. 

Benefits Of Apartments

The major benefit of apartments is that it is very affordable. An apartment would be an ideal choice for single people. An apartment also has fewer maintenance fees as compared to houses or townhouses. You also get enhanced security and various common amenities like a swimming pool, garden, etc. 

1. Affordable Purchase Price

Apartments are generally more affordable than townhouses or houses. This makes them a good option for buyers on a budget. Plus, you get a lot of choices due to new apartments being built in cities like Brisbane, Sydney, and Melbourne.

2. Less Maintenance

Apartments being small in size do not require much cleaning when compared to a house. The maintenance body also charges fewer fees, and you don’t have to maintain common areas like gardens, lawns, gutters, etc.

3. Security

Modern Apartments generally offer better security. The buildings have guards, swipe cards, and CCTV systems to enhance the safety and security of the building.

4. Small Bills

Your utility bills like electricity and gas will be less compared to houses because the apartments are small. They don’t need many resources to function.

5. Amenities

With apartments, you enjoy facilities and amenities such as lifts, swimming pools, gyms, gardens, tennis courts, playground, basketball court, etc., depending on the builder.

6. Location

Most apartments are usually constructed in or near city centers. This saves time to reach day-to-day places such as supermarkets/ malls, schools, churches, business establishments, hospitals, etc. 

Drawbacks Of Apartments

The major drawback of apartments is the less space you get to live in when compared to houses or townhouses. The maintenance fees can also be higher in some places than townhouses if the apartment body provides a lot of amenities and charges for it.

1. Less Space

The major drawback of apartments is that they’re small in area compared to both houses and townhouses. It wouldn’t be suitable for people who need large space.

2. Maintenance Fees

These are generally much cheaper than houses or townhouses. But if your apartment has a lot of amenities and facilities, the fee can be comparable to townhouses.

3. Customizability & Flexibility

Apartments usually have bylaws and rules related to pets, renovation expenses, noise levels, etc. This limits the customization you can do in your house, and the rules also bind you.

4. Limited parking spaces

Apartments being small in size, have more residents in a single building. But the parking space is limited, and you may even be asked to pay extra for that.

Key Takeaways

The choice depends on what your needs are. Do you have a big family? How’s your financial condition? Are you buying property to build a property portfolio or living basis?

You can make a wise decision after considering these factors. The house offers you the most space with a townhouse and apartments following it. 

Similar is the trend for affordability, apartments being the most affordable. For accessibility to the city, apartments can be a suitable option as they’re generally closer to cities. And if you want to customize your place, a house is the way to go. Research-based property investment will help you make the best decision.