Before making an investment in a unit or a house you should first consider these key factors:
- Initial cost: First-time investors have an easier time to raise the necessary capital for units than houses which have a higher entry price point due to land value.
- Maintenance: All the maintenance issues of a house is the sole responsibility of the owner in contrast to an apartment building for which the body corporate has to take care for.
- Ongoing expenses: Land taxes must be paid regularly for a house making the council rates for maintaining one high. With a unit or apartment, you will have to account for strata fees quarterly for the life id of the investment.
A house offers higher capital growth, due to the land component of the property with a higher potential for negative gearing. Units offer higher rental yields so they are more favourable from a cashflow perspective.