When investing in real estate in Australia, we generally consider these three factors.
In Australia, house prices vary from city to city. For example, in Melbourne, if your budget allows you to buy a house of 400,000 to 600,000 Australian dollars, you must choose a location at least 20-40km away from the CBD. Those houses less than 20 kilometers from the CBD at least cost 1 million to 2 million Australian dollars, especially some in high-quality campuses and affluent areas. It is should be noticed that foreigners cannot buy second-hand houses in Australia unless they are permanent residents or citizens.
On the other hand, in cities of western Australia like Perth, you may be able to buy a house of 400,000 to 700,000 Australian dollars which is located within 20 kilometers away from the city center, depending on the land size, building and location. At the same price, Brisbane needs to be extended to the distance of 30 km to 40 km and in Sydney, it may be 50 to 60 kilometers away from the center to find a house at this price.
If you don't want to fit up a house, the apartment may be more suitable for you. What’s more, houses with 3 to 4 bedrooms are usually more suitable for families and are likely to be located in the suburbs. Unlike normal apartments, you can choose a single apartment or a top-level apartment, which is the first choice for young professionals or college students. Student areas or short-term leases usually have the highest rental yield, but may incur other costs.
As most apartments are close to the central business district or university, public transportation and amenities are convenient. Many young people prefer to live in apartments because they don't need much maintenance and spare them more time for social activities. But the disadvantage is that you have to compromise on modular buildings. The bigger the apartment, the higher the price. If used for investment, people will generally choose those with one bedroom or two bedrooms, while three-bedroom apartments are usually used for self occupation, but they are difficult to buy and expensive, especially in the CBD.
The advantage of apartment is that it is safer to live in than a house, because there is only one entrance, and more residents mean safer. However, there is no absolute security guarantee.
In the past, it was generally believed that houses appreciated faster than apartments. This is no longer the case with the changing life preferences of the new generation. Some apartments appreciate faster than some houses, especially in areas with high demand. Therefore, location is still the most important factor when considering buying a property for living or investment. However, generally speaking, the rental yield of apartments is higher than that of houses.
In addition, you need to consider that the average life of the apartment is about 40 years, while the average life of the houses is about 50-60 years. The aging of independent houses is much slower than apartment buildings since the facilities of apartments are shared by residents.
The long-term value growth of houses is usually higher than apartments, because the land will appreciate over time, and the land of houses is often more than apartments. But it is worth noting that this is not always the case. For exception, a lot in the suburbs of Australia is unlikely to be more expensive than that of an apartment overlooking the urban landscape of Darling Harbor of Sydney, or an apartment in a prime location with a view to famous landmarks. Therefore, when investing in real estate, location and market conditions are always given a priority.
As a conclusion, buying house and apartment both have advantages and disadvantages. There is no absolute answer, but investors must set priorities.