Units v houses: The pros and cons agents need to remind buyers of

“Every buyer should think carefully before buying either type of property, as both come with benefits and advantages,” McGrath said.

According to Cotality’s February Home Value Index, across the nation, median house prices sat at $1,005,418, while units were $741,404.

At the top end of the market, Sydney’s median apartment value sat at $903,080, compared to the median house value of $1,607,046, following a respective annual lift of 2.7 per cent and 5.5 per cent.

At the lower end of the real estate market, Hobart’s median unit and house prices sat at $574, 204 and $779,059, respectively, following annual increases of 5.5 per cent and 8.1 per cent.

While price remained a decisive factor, McGrath said buyers should consider other key points, such as additional strata costs, council rates, long-term appreciation, and lifestyle.

Units

According to McGrath, units’ small spaces weren’t for everyone, but they were often the ideal size for singles, couples, or small families, depending on their needs.

“Another advantage is their central metropolitan locations, closer to employment opportunities, transport, and other amenities.”

On the other hand, McGrath said a possible disadvantage of apartments was their mid to long-term impact on finances, as well as

“These should be considered before buying an attached home.”

McGrath said that, despite initially being more cost-effective than houses, strata or body corporate fees can sometimes make owners’ costs almost as steep as those of comparable detached houses.

“It’s true these fees include crucial building insurance, which any owner needs.”

“But potentially high fees don’t necessarily equal abundant on-site amenities such as pools and gyms.”

Similarly, McGrath said another consideration with unit living was the lack of direct decisions when issues arose.

He said that, as units were part of a strata, the costs of general maintenance and updates were shared among owners, and the decision on which company to use for the work and when it was done was also shared.

Houses

McGrath said that, compared to units, which were initially more cost-effective, detached houses were associated with higher upfront prices and council rates.

However, he said houses had the benefit of appreciating better and faster than strata properties, due to their land size alone, even if small.

“And, while rarely available or built, in central city areas, houses can be found almost anywhere else and still be close to amenities,” he said.

According to McGrath, another important advantage of detached houses was that owners didn’t need to pay body corporate fees.

“In this way, they can enjoy extensive freedom – and space – when it comes to updates, renovations, and pets,” McGrath said.

“This, of course, means you’re responsible for all maintenance issues, but you can also choose who best suits your budget, and similar, when it comes to tradespeople,” he said.

Verdict

Ultimately, McGrath said there was no right or wrong answer as to what kind of property was best for each buyer.

He said it was important to weigh the advantages and disadvantages of each asset and to consider the short-, mid-, and long-term impacts of the location they chose to buy.

“Remember, too, that every home has its good and bad points.”

“Take the time to enjoy your new home and enjoy it for what it really is: a place you can make your own, and a significant financial step ahead in wealth creation,” McGrath concluded.