10 charts that show how the property market changed last year
Poor affordability, a surge in stock for sale and the sustained higher interest rate environment have combined to slow down price growth. Click here to read more.
Home ownership is changing in Australia, with many buyers moving away from the traditional house and instead becoming open to purchasing dwellings of different shapes and sizes.
Depending on what you are looking for in a home, one of these types of properties may be more suitable than the traditional house with a front and back yard.
Costs of transacting property in Australia is high, mainly due to stamp duty and other selling costs, so from an investment perspective buyers should avoid doing so more than necessary. For this reason they should spend ample time considering their needs before buying a home.
These days when searching for property there are a number of options to select from:
This is the traditional stand-alone dwelling where the buyer is purchasing the land on an individual title.
Houses come in all shapes and sizes to suit singles, couples, families and even multi-generational families. Some houses are standalone, while others can be duplexes or cottages that are joined at either side.
This is the most popular property type for owner-occupiers in Australia and allows the most flexibility and privacy. However, it has its drawbacks, including: higher costs, more space to clean and maintain, higher utility bills, and sole responsibility for maintenance and repairs.
An apartment is a self-contained flat that is part of a bigger complex.
Apartments can be a popular choice for singles or couples, as well as downsizers, given their smaller size and lower maintenance requirement.
When you own a unit, you are on a strata title, which means the flat belongs to you but ownership of the common property is shared with the different owners.
It also means that you will belong to a body corporate and must comply with certain bylaws. As a member of a body corporate, you’ll need to pay body corporate fees, to cover the repair and maintenance of the common areas. The exact amount you pay will depend on the size of the lot you own, as well as the sizing of the building complex, its age and its amenities.
A cheaper purchase price and more convenient location tend to be the biggest benefits of owning an apartment, which means they’re generally best suited to property investors and single, first home owners.
A townhouse is a multi-level building designed to mimic a traditional house that is owned on a strata title. This means you own the dwelling but share the land with other people.
Townhouses are a fantastic option for singles, couples, families or downsizers, given they often have a similar amount of space as a house but have substantially fewer maintenance requirements.
They will usually come with some outdoor space, which can range from a courtyard or a larger backyard.
Depending on the individual townhouse, they may have a body corporate and, therefore, face similar restrictions to an apartment.
A subdivided block which may include either a standalone house or an attached dwelling is considered a unit due to the division of the land. Addresses will typically have a number or letter attached to street number, eg. 1/29 or 42B.
Subdivided blocks are a fantastic option for families, couples or downsizers who wish to capitalise on the option to buy a house in an area where full blocks are out of their price range.
Technically all urban and suburban blocks are divisions of larger parcels of land that have been split up and arranged into the streets and suburbs we know today. Over the years these blocks have been further subdivided into smaller parcels to accomodate growing populations. For example, it used to be common for blocks of land in Australian suburbs to be around a quarter of an acre or 1101sqm.
Blocks in many urban areas are trending smaller, especially those close to CBDs, but usually the suburb will have a standard size that is common for most dwellings.
Subdivided blocks will be smaller than the average block in the area, hence the more affordable price, which allows more buyers to access land.
Often these properties can share driveways, parking areas or other outdoor space and may or may not be subject to an owners corporation.
This option can be popular for those that are looking for all the benefits of a house but don’t have the budget or desire for a full block in the same neighbourhood.
When choosing between a house, subdivision, townhouse or apartment, there are a few factors to think about when it comes to making an investment:
When it comes to buying a home, it’s important that you consider potential downfalls and bonuses of all types of property and choose the one that is right for you.
This includes whether your family will grow and if you will need more space in the future. Meanwhile, if it is an investment property, location might be more important than the size of the property.
Answering some of these questions before you buy should help you decide which property type is best for you, reducing the likelihood of making a costly mistake.
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Poor affordability, a surge in stock for sale and the sustained higher interest rate environment have combined to slow down price growth. Click here to read more.
Australia’s national median rent price has crept to a new high, but an uptick in the number of available rentals has kept rents steady across much of the country. Click here to read more.