Should You Invest in a House or a Unit/Townhouse?

When it comes time for you to invest in Australian property, you have probably wondered whether you should invest in a house or a unit/townhouse? Both types of properties cater to different kinds of tenants and have their own unique set of responsibilities that owners should be aware of. The type of property you invest in will have a major effect on what investment opportunities open up for you later on.

At Property Club, we feel it is important that our members have all the right information available to them before they invest in a property. This way, they will have complete confidence over the price, location, and type of property that they choose to invest in. To help you with this decision, here are some of the key pros and cons of investing in either a house or a unit/townhouse.

Pros of Investing in a House

There are many benefits to investing in a house. Houses typically offer more living and outdoor space compared to units and townhouses, providing room for families to grow and enjoy a greater range of activities. They also offer more privacy compared to units and townhouses, where the occupants have control over their outdoor space and are not subject to the same rules and regulations.

Houses offer more flexibility for customisation and renovation compared to units and townhouses, which may have strict rules and regulations. Likewise, they typically offer more space for landscaping, allowing you to create an outdoor space that adds further value to your property.

Cons of Investing in a House

While there are plenty of great reasons to invest in a house, there are a few drawbacks you should be aware of before you dive in. Houses are typically more expensive compared to units and townhouses, making them less accessible for some buyers.

Owning a house often means more maintenance and upkeep, as the homeowner is responsible for maintaining the property and some aspects of the yard. Houses are also often located in more suburban or rural areas, making them less convenient for those who want to be close to city centres and amenities.

Pros of Investing in a Unit/Townhouse

Units and townhouses are often more affordable compared to houses, making them a more accessible option for some buyers. Their locations are typically quite convenient – often being located in more densely populated areas, closer to city centres and amenities, making them a convenient option for those who want to be close to work, shopping, and entertainment.

Owning a unit or townhouse often means less maintenance and upkeep compared to a house, as common areas and shared facilities are usually managed by a body corporate. Units and townhouses are a good investment option, as they often have a lower entry cost compared to a house and can be easier to rent out, with fewer vacancies between leases.

Cons of Investing in a Unit/Townhouse

Units and townhouses typically have limited outdoor space compared to a house, which can be a significant factor for those who enjoy gardening or outdoor activities. They are also often part of a complex and may lack privacy compared to a house, where the resident has control over their outdoor space.

Units and townhouses often come with maintenance or body corporate fees, which can add up over time and be a significant cost. They are also often subject to strict rules and regulations regarding exterior modifications, limiting the homeowner's ability to customise and make changes to their property.

Investing in Property with Property Club

While there are pros and cons to investing in both houses and units/townhouses, the right decision will change from investor to investor. At Property Club, we help our members make informed investment decisions with our pool of resources and supportive property mentors.

To find out how we can help you on your investment journey, contact us today on enquiries@propertyclub.com.au.