a unit or house?

Before making a decision, consider the following factors:

Initial Cost

Units generally have a lower purchase price than houses, making them a more accessible entry point for investors. With property prices remaining high across most capital cities, many buyers are finding that a quality unit in a well-located suburb is more attainable than a house in the same area.

Houses command a higher price due to their land component, which remains a key driver of long-term value growth.

Ongoing Expenses

Owning either property type comes with ongoing costs, but the expenses differ.

For houses, owners are responsible for council rates, insurance, maintenance and any applicable land tax.

For units, owners will also pay council rates and insurance contributions, but must budget for body corporate or strata fees. These fees cover the maintenance and management of common property and facilities. Investors should also be aware of the potential for special levies, particularly in older complexes where major works may be required.

Maintenance

A house gives you complete control over the property, but that also means you are responsible for all maintenance and repairs.

With a unit, external maintenance, building insurance and upkeep of common areas are generally managed by the body corporate. While owners are still responsible for maintaining the interior of the unit, the overall maintenance burden is often lower than owning a house.

This can make units particularly attractive for investors seeking a more hands-off investment.

Capital Growth and Investment Potential

Traditionally, houses have outperformed units in terms of long-term capital growth because land is a finite asset. The greater the land component, the greater the potential for value appreciation over time.

However, today’s market is showing that well-located units can also achieve strong growth, particularly in areas where housing affordability has pushed more buyers towards apartments and townhouses.

Houses continue to provide greater flexibility to add value through renovations, extensions, granny flats or redevelopment opportunities. Improvements such as adding a bedroom, creating outdoor entertaining areas, or upgrading living spaces can significantly increase both rental income and resale value.

Units typically offer fewer opportunities for structural improvements but can still achieve excellent returns when located in high-demand areas with limited supply.

Rental Yield and Cash Flow

One of the biggest advantages of units is their ability to generate strong rental returns relative to their purchase price.

With Australia’s rental market remaining exceptionally tight and vacancy rates near historic lows, many investors are achieving attractive yields from well-positioned units.

Houses can still provide strong rental income, particularly in family-oriented suburbs, but their higher purchase prices often result in lower percentage yields compared to units.

For investors focused on cash flow and serviceability, a unit may offer a more balanced investment proposition.