The Different Types of Property: Which One is Right For You?

Buying a property is more than a big-ticket purchase—it’s an investment and a lifestyle choice. So, it pays to consider various factors when finding the right property. Do you prefer a four-bedroom home in the suburbs, a townhouse in the inner city, or an apartment in the CBD? How about a fixer-upper? So, before you start scrolling through endless property listings, let’s take a moment to explore the various types of properties in Australia and figure out which one might be your perfect match.

Exploring Your Options: The Common Types of Property

Australia’s property market is as diverse as its landscape. From cosy apartments in bustling city centres to sprawling acreages in the countryside, there’s something for everyone. Let’s start exploring your options by breaking down the main types:

1. Houses

Owning a house is a quintessential Aussie dream. This type of property offers space, privacy, and the freedom to renovate or extend. Houses come in various options, such as detached houses or the classic standalone homes on their block of land. Semi-detached homes are also common. Sharing one wall with a neighbouring property, semi-detached houses offer a balance between space and affordability.

Usually, you can acquire a house through a house-and-land package. Consider this if you want to customise your home from the ground up. Some packages even include ‘turnkey’ deals with all the extras like driveways and landscaped gardens, making the home move-in ready. These properties are often located on the outskirts of the city, so if you prefer city life, you may want to explore other options. 

You can also get a newly renovated house. But when buying a newly renovated home, it’s important to be cautious and ensure that the property has been renovated to a high standard. Some homeowners may cut corners during renovations to save money and maximise their profits when selling. Keep an eye out for signs of poor workmanship, such as inadequate waterproofing in wet areas, termite damage, concealed mould (e.g., painted over), improper stormwater drainage, roof leaks, and retaining walls that don’t meet building codes.

2. Duplexes and Dual-Occupancy Homes

While both offer two living spaces on one property, duplexes and dual-occupancy homes have distinct differences. Duplexes typically feature separate titles for each dwelling, allowing independent ownership and sale, and are often on subdivided land. They usually share a common wall and may have shared areas like driveways. 

Dual-occupancy properties, on the other hand, exist on a single title and cannot be sold separately or subdivided. They can be attached or detached and offer more flexibility in design and living arrangements, making them popular for multi-generational families or those who want to gain rental income. 

Ultimately, duplexes provide more independence and separate ownership options, while dual occupancy offers greater flexibility within a single property ownership structure.

3. Apartments/Units

Perfect for those who prefer low-maintenance living or want to be close to the CBD, an apartment or a condo unit is another type of property worth exploring. They are usually more budget-friendly than houses and require less maintenance, such as mowing lawns and tending to gardens. Apartment or unit complexes may also offer extra facilities like a pool, tennis court, gym, and BBQ area. Keep in mind that you’ll need to budget for quarterly body corporate fees to cover the unit maintenance.

4. Townhouses & Villas

Looking for that middle ground between houses and apartments? Consider townhouses. They’re often multi-level and have an outdoor terrace or courtyard. They’re ideal for those who want a bit of outdoor space without the full commitment of buying a house. Plus, unlike apartments, townhouses generally don’t have a lot of common spaces, like shared hallways or a lobby, to offer more privacy to residents. 

Similar to townhouses but typically single-level properties, villas are common in retirement communities. They are great for downsizers or those with mobility concerns. 

5. Rural Properties

If you dream of owning wide-open spaces, consider buying land or rural properties. These property types can be generally categorised into two: acreages & farms. Acreages are large blocks of land perfect for hobby farms or those seeking privacy. Farms, on the other hand, are working agricultural properties for serious landowners. 

Matching Property Types to Your Lifestyle & Financial Goals

Now, let’s get personal. Which property type aligns with your lifestyle and plans?

For the City Slicker

Do you love the buzz of urban life? Buying an apartment or a unit in the city centre might be the right fit. You’ll be close to work, entertainment, and public transport. Also, these properties often require less maintenance, giving you more time to enjoy city life.

For the Growing Family

Houses or large townhouses in the suburbs could be ideal. You’ll have space for the kids to play, room to grow, and potentially good school zones. Just be prepared for more maintenance and possibly longer commutes to your office and other areas.

For the Investor

Consider the rental yield and capital growth potential. Apartments in popular areas and holiday properties in go-to tourist destinations often have good rental demand. However, houses in a hot property market might offer better long-term capital growth. Don’t forget to factor in additional costs like strata fees for apartments to truly project the rental yield and capital growth potential of a certain type of property.

For the First-Time Buyer

If you’re a first-time buyer, you might want to look at more affordable options like apartments or townhouses in up-and-coming areas. These can be great stepping stones to build equity before moving up the property ladder. If you’re not in a hurry to move in, buying off the plan is another option. You can enjoy financial incentives with this kind of purchase.

For the Downsizer

Villas or smaller townhouses could offer the perfect balance of space and manageability. Look for properties with low maintenance requirements and good accessibility to purchase a property suited to your future needs.

Financial Considerations

Different types of property come with different financial implications. Here are some of them:

• Stamp duty: Stamp duty varies by state and property value. Some states offer concessions for first-home buyers. For instance, Tasmania provides zero stamp duty to eligible first-time home buyers.
• Strata fees: These fees cover shared maintenance costs in apartments and some townhouses.
• Council rates: These rates are generally higher for houses due to larger land size.
• Maintenance costs: Houses typically have higher ongoing maintenance costs than apartments.

Making Your Decision

Choosing the right property type requires balancing your lifestyle needs, financial capacity, goals and plans. Here are some final tips:

• Visit different property types to get a feel for what suits you. There’s no one-size-fits-all in real estate, so spend time & effort to find the right fit.
• Consider your five to ten-year plan and ask yourself, “Will this property still suit me and my family in the future?”
• Crunch the numbers and factor in all costs, not just the purchase price.
• Think location, location, location. The right property in the wrong area might not be the right choice.

Let Us Help You Acquire the Type of Property Suitable for You 

Have you settled on exploring one specific or two types of property? Let us take you through the next steps.

At Deltos Finance, we’re here to help you enter the property market and find the perfect loan for a property. Whether you’re eyeing a chic city apartment or a spacious suburban house, we have the expertise to guide you through the process.

Reach out to our team of expert mortgage brokers today, and let’s get started!