While both offer potential returns, their characteristics cater to different investment strategies.
Units typically have a lower capital outlay. For instance, the Sydney median house value in January was $1,474,032 compared to $857,969 for units, according to CoreLogic.
The lower cost of buying a unit can translate to higher rental yields, which is appealing for investors prioritising cash flow. On the other hand, houses often come with greater land value appreciation potential, making them attractive for investors looking for long-term growth.
Houses allow owners more flexibility over renovations and future development, but they often need more maintenance, resulting in higher ongoing costs.
While the strata arrangements associated with apartments can limit flexibility for owners of units, they also cover the upkeep of common areas, reducing unexpected expenses.
By carefully weighing these pros and cons, you can make an informed decision that aligns with your investment strategy.
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