Let’s explore the main types of housing and their advantages and disadvantages.
Houses
Houses dominate the Australian property market, accounting for 70% of private residences
. They come in different forms:
- Detached houses: Freestanding residences
- Semi-detached houses: Share a common wall with a neighbouring home
- Terrace houses: Typically dating from the 19th and 20th century, often in rows
Pros:
- Historically higher capital growth rates compared to other property types
Cons:
- Price premium over apartments (median price nationally: $879,680 for houses vs $669,700 for apartments)
Apartments
One in six Australians live in apartments, and their popularity is growing. Searches for apartments have been trending upwards since mid-2020, accounting for almost 40% of all ‘buy’ searches in late 2024
.Pros:
- More affordable than houses
- Low-maintenance living (e.g., no lawn mowing)
Cons:
- Strata levies for building maintenance and repairs, potentially higher in newer developments with more facilities
Townhouses and Villas
Townhouses make up 13% of dwellings across Australia
. They offer a middle ground between houses and apartments.
- Townhouses: Typically two storeys
- Villas: Usually single-storey homes
Pros:
- More affordable than houses
- Small garden or courtyard space for private outdoor areas
Cons:
- Part of a strata scheme, which may involve strata fees
Duplexes
Duplexes are modern versions of semi-detached houses, often with two adjoining homes on a larger block connected by a single wall.Pros:
- Combine privacy of a house with affordability and low maintenance of townhouses
- Potential to buy a home for almost half the price of a regular house
Cons:
- Owners of both duplex homes must agree on a building insurance policy covering both sides
When choosing a property type, consider your personal preferences, budget, and borrowing power. It’s essential to weigh the trade-offs and compromises involved in each option. Consulting with a mortgage broker can help you determine your borrowing capacity and guide your property choice.
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