Unit or House or something in-between?

Hi guys,

Sorry I know this might be a stupid question (newbie here), but it seems like in general investing in a house will give you much better gains than a unit. I've attached a few photos, would these type of properties be more likely to follow the GC of a house or unit?

And how would the land situation work with these? In buying something like that is the land underneath it actually yours to do with what you wish?


Again sorry for the newness

Cheers,

 

All property prices move according to the market but not necessarily at the same time. Price is relative to the location - a unit may be 70% of the cost of a house in the same area and will generally be around this % during various stages of a cycle.

Houses may have more potential of usable land but units have greater utilisation of the space that you own.

 

Don't forget to factor in body corporate costs. High body corps can limit your market when it comes time to sell, and can severely affect yields whilst you own it.

On the upside, a good body corp can save you a lot of hassles.

I've been looking at the not quite a house market myself. From my research a duplex without body corp seems to offer the best compromise.

Either way, as a newbie you have come to the right forum!

 

With strata you essentially own the air inside the walls. Whether one is better than the other depends on your goals, long term or short term strategy etc? Any strata properties you consider make sure you investigate the sinking fund thoroughly.

 

@Green - comes down to affordability and where you are buying.

Strata properties - preferably villas and townhouses offer you the ability to get into the market at a lower price entry point and tend to be higher return.

However as called out it depends where you are buying. It was a perfectly viable strategy in Sydney that mitigated risk across multiple dwellings. However, for instance Brisbane has an oversupply of strata properties, coupled high density complexes, usually with very high body corporate fees, which makes the deal pretty useless when you look at the bottom line.

As @Scott No Mates said, when the markets grow, they tend to grow everywhere.

So what's your budget and where are you looking?

 

I think someone said they are lumped in with detached house data, i do not know if that is true.

The problem is, these may out perform some houses in some areas and under perform in other areas. Location and what people want in an area will help determine CG or pricing as well as market conditions.

Regarding the land, almost always will be no as buildings are common covering common ground, only a torrens title duplex you could do almost what you like. In strata generally any changes at all will need specific permission.

 

hmm yes those exampled I posted were all from the logan area which I was looking at but you make a good point. I'm 19 and a uni student so budget is pretty tight, I'm really looking at 250 maybe could stretch to 300.

The aim is to get something that isn't neg geared and hopefully I could pull out some equity in a year or 6 months and get another. Thats the fantasy at least. Id like to be able to buy in Melbourne but the rents just don't stack up so I started looking at south Brissy which is appealing because I can get in just above 200 in one of those detached house type deals and they have such a good yield. Although maybe weak growth?

I guess I'm really not too sure which direction to go from this point


Also thanks for all the great replies everyone