Choosing a property type
There’s four basic decisions to make when you’re picking the type of property to buy - will it be a house or unit and will it be an existing or new property. Here are some of the advantages and disadvantages of buying each.
Buying a houseAdvantages
- Houses have greater potential to grow in value
- Can accommodate any type of buyer such as families or singles.
- Often located in suburban areas
- Larger internal and external living spaces
- Can have lots of scope to improve the value and appeal of the property through renovations, additions and landscaping
- Houses are more expensive than units
- Maintenance and repair costs are your responsibility and may be more costly
- Council rates can be higher for houses
- Houses may have higher insurance premiums due to size and security requirements.
Buying a unitAdvantages
- Most units are more affordable than houses
- Smaller in size means less space to maintain and furnish
- commonly found in metropolitan areas with convenient public transport and nearby shops
- Repairs to the building are shared between all owners
- Can have shared facilities such as a gym, pool and elevators.
- Older units or building can incur high maintenance costs
- body corporates may limit the renovations and additions you can make.
- Units may not have all the amenities prospective buyers want - multiple bathrooms, internal laundry, parking
- You may share walls with multiple other dwellings
- You will need to pay for strata insurance to insure common areas
Buying a new propertyAdvantages
- The property is going to be new and free of any defects or areas that need to be repaired
- Depending on your state and if you’re willing to live in the property for a short period after you purchase it, there are generous government concessions available for new-home buyers
- Newer buildings may be in areas around that are newly constructed and feature brand new parks and facilities
- If you purchase the property before it’s completed you may not know exactly what it will look like
- New properties can be more expensive than established or older ones
- New properties can be located in suburbs or locations that are also newly established and are further travel times
Buying an existing propertyAdvantages
- Existing properties will be in established suburbs and likely close to services, transportation and central business areas.
- Older properties may be cheaper than newer properties
- Existing properties can be renovated into your dream property.
- Established properties may require repairs or upgrades, depending on the age of the property.
- There are no stamp duty exemptions for buying existing properties.
Where to buy
The location you buy your property can be more important that choosing the type of property you want. When researching suburbs to purchase in you may want to note the properties proximity to some of the following:
- public transport
- entertainment complexes
- proximity to areas such as CBD’s or employment areas.