VIC units/townhouse vs flats vs apartments

Hi all,

What are your opinions on performance of detached/semi detached units (on shared block of land obviously) or townhouses, vs a flat or an apartment? (specifically 2 bedders). Its difficult to get data on this from say realestate.com.au (or even to search up past sales) as these are all lumped together.

I'm lookin for a PPOR (that will some day be an investment property hopefully), and for my budget (around $450k) I'm pretty limited. I can live a lot closer to the CBD/nicer area if I bought an apartment (obviously I'd have to think very carefully about what kind and where I bought).
In your experience do freestanding units/townhouses perform much better than apartments for capital growth or should I abandon this idea and re-think my approach entirely?

Note I'm looking to buy in Melbourne. I don't think I can afford a house in an area I'd be happy living in. I've considered rentvesting but means I would forego the stamp duty exemption and would likely be tighter on the cash flow, plus I have a cat so may be restricted by many landlords. It sounds like it is also harder to get investment loans these days.

Thanks

 

I would personally go for something with a land component ie townhouse or villa.

How long will you be living in this place? What would you like this property to do for you? Need to ultimately tie back to where you are in life, and where you are going.

With apartments - as you would already be aware, there is an oversupply in Melbourne - which would impact capital growth.

 

Villa units are highly sought after by my clients across Melbourne. Because of the land they come with, they often feel like a house.

Watch out for old stratum title (company share), which is still around for properties built during the 40s to mid 60s. Can be difficult to get finance for and there is no protection for owners under the Owners Corporation Act.

 

Villas and townhouses all the way because l own both with houses lol. Personally, l avoid high rises.

 

I bought a villa/duplex thing for all the reasons mentioned above.

One thing i can say though is that desktop computer vals seem to lump all units/appartments/townhouses together.

So if all the high-rise around you tank then your villa, at least as far as the computer thinks, seems to go with it too. The reality is of course a little different but still worth keeping in mind when applying for finance revals etc..

 

ive had both hi-rise apartments and townhouse and there is not much comparison; the latter trumpps the former for cg. Not applicable in all circumstances obviously, but inthe majority.
This should hold in all the bigger cities which seem to have high supply of high rise development and low(er) supply of townhouses/villas. Sydney included, but id say less so in sydney.
The issue you will likely face is that the townhouses/villas ( if they have the land and location) will be already expensive. These are big itsms that ciontribute to cg and worth , in my view, paying a higher price, assuming budget is not streched.
I dont know much about suburban areas in melbourne for 450k; ive only f@#$ed around in the inner city blue chip areas of melbourne, but id suspect you could get something ( smaller) villa or the like perhaps 20-25km from the cbd...? Id say that maybe a higher CG play than the 1, bedder high rise in the CBD. However, ensure that its close to public transport especially trains. This will help rentability a lot. should also help CG.

 

450K is not going to go far for villas or townhouses (you either have to go further away -2 bedroom, reservoir you still can get a 2 bedroom townhouses for mid to high 400Kish. I think if you have 450K you should just buy h&L in Epping, Werribee or the likes of hoppers etc. Otherwise this is the other option - moving away from "herd mentality thinking" 4 years down the track ( go where the new train stations will be build these areas will be sought after rentals). and look for a 2 bedder apartment. Forget heritage, small blocks - get as close to the station as you can (as they are all underground) Currently rentals you can get 500 per week for a 2 bedder and this will likely increase further and further once these stations are built. They are all in demand areas. The next 5 years in Melbourne with new highways, stations and infra - will see a lot of changes (with new opportunities for gains either through rental of CG). Melbourne has one of the lowest Council Rates I believe in Melbourne. Even Canberra council rates are going up to 3.5K I rather pay 1.2K then 3.5K

Arden & Parkville- north Melbourne/ carlton precinct (redevelopment of QV market is huge, in the "University High School Zone, Melbourne University, The hospital district (rental wise it will grow)

Domain
(Botanical gardens, fawkner park, Albert Park lake, minutes to CBD and South yarra and also the south Melbourne market .