As a property buyer in Australia, you typically have three main options when purchasing: townhouse, house, or apartment. Buying property is one of the most significant financial investments you are likely to make, so understanding your options is crucial.
Consider factors like whether you are purchasing to live in or as an investment, your long-term goals, and any essential features you need.
Keep reading as we compare townhouses, houses, and apartments, discussing their pros and cons to help you make an informed choice.
What Is A Townhouse?
A townhouse is a home that typically shares common walls with its neighbour.
Because townhouses are designed and constructed together, they can minimise some construction costs and, with economies of scale and labour, can sometimes be cheaper than comparable sized fully detached homes.
Recent development trends and increased population centres near major cities mean that townhouses are growing in popularity. Because townhouses can utilise space more effectively, they are increasingly regarded as a solution to the current housing crisis. Medium-density dwellings like townhouses are thought to be some of the most effective ways to increase housing in well-located areas and to add to the ‘Missing middle’ of property types between high-rise apartments and single-detached houses.
Thanks to their versatility and design features, townhouses suit almost all varieties of property buyers, from first-time owner-occupiers to seasoned property investors.
Most townhouses can include as much space as a detached house, and common walls, they require much less maintenance and upkeep.
Advantages Of Buying A Townhouse
- Modern amenities: Many townhouses include modern conveniences, such as ensuites, open-plan floor plans, and garages.
- Space: The multi-level layout of most townhouses allows them to include design elements like second living areas, walk-in robes, and butler’s pantries.
- Price: Generally, townhouses are cheaper to purchase than a detached house.
- Privacy: much like a detached house, you don’t share any common areas with neighbours.
- Location: Developments in desirable locations often include townhouses and are cheaper to buy then detached homes in the same areas.
Disadvantages Of Buying A Townhouse
- Space: Townhouses sometimes include less space than a detached house, yet often more than most apartments.
- Less individuality: The exterior of townhouses as they are constructed all together are all uniform. The interior of a townhouse is the place where you can inject your individuality and style.
- Price: Townhouses are often more expensive than apartments.
> Tips on how to style a townhouse
What Is A Detached House?
Traditionally considered the pinnacle of the Australian property market, a detached free-standing house can vary widely in size and shape. To be defined as a detached house both the land and the home are sold under an individual title.
The great Australian dream often imagines a detached home on a quarter-acre block with both a front and back yard. More space, greater freedom, and flexibility in making your home your own are what have driven detached homes to the top of the property food chain.
Recent changes in the cost of construction and zoning mean they are not always the most attractive options for all home buyers. Improvements in townhouse design means that you can often get the same internal area for a lower cost in a townhouse.
Advantages Of Buying A House
- Space: Minimum block sizes are set at usually set by the developer, and traditionally, larger blocks mean that most detached homes are larger in size than other property types.
- Outdoor areas: Living in the lucky country means that we have abundant warm weather and sun in most areas of the country. Having ample areas to spend time outdoors is a significant advantage of detached houses.
- Privacy: A detached home means you share no common areas with others, so your space is your own. Planning laws tend to protect your private areas and backyard from new developments being able to look into your property.
- Resale value: detached houses appreciate better than townhouses or apartments, no matter which way the market heads.
Disadvantages Of Buying A House
- Price: All that space and privacy comes at a premium, with detached houses tending to be more expensive than other property types.
- Location: With the trend towards more significant developments and apartments, houses in desirable locations tend to be held onto for longer or developed.
- Maintenance: There is a lot to look after in a detached home think cleaning, gardening, plumbing, painting, maintenance. There are also nature strips and even some local council requirements regarding lawn care.
What Is An Apartment?
Apartment, flat, or unit, no matter what you refer to it all apartments are classified as self-contained homes within a larger living complex.
As an apartment owner, you own the title for your unit on a strata title, meaning you share the ownership of the common areas with the other apartment owners in your complex, known as the body corporate. A body corporate means you must abide by some bylaws regarding the exterior of your home and ordinances like reasonable noise and pets in common areas.
Popular for owner-occupiers as well as investors, apartments tend to be found in convenient locations near transport links and local amenities. Being cheaper to construct and purchase, they are often great for first-time homeowners.
Advantages Of Buying An Apartment
- Price: Apartments, for the most part, are more affordable than detached houses or townhouses.
- Location: Apartment buildings are often placed near local amenities, like parks, shopping strips and transport links.
- Maintenance: Being part of a body corporate means that they take care of the upkeep and maintenance of the common areas.
- Lower bills: Apartments are generally smaller, which means they take less energy to heat and cool. An apartment on a middle level is the cheapest to heat during winter, as neighbouring units act as extra insulation. Learn about 7 star NatHERS
Disadvantages Of Buying An Apartment
- Space: While some apartments come with a balcony, most are smaller than houses and don’t have great connections to the outdoors.
- Body corporate: In older buildings, the body corporate fee can be minimal, whereas new buildings with amenities like pools, lifts, and gyms can drive fees higher. You should factor body corporate fees into your budget.
- Flexibility: Apartments living means you are bound by body corporate rules that regulate everything from pets and noise to whether you can undertake renovations.
Townhouse, House or Apartment – Which Should You Buy?
After evaluating the pros and cons of each property type, be sure to consider your own circumstances both now and in the future. Ask yourself the following questions we’ve compiled to help you determine whether a townhouse, house, or apartment is the best fit for you…
How Many People Will Live In The Property?
Singles and couples who don’t need extra space would most likely find everything they need in an apartment. If you are looking to expand your brood or welcome family members to live with you in the future, then a townhouse or house might be better for your needs.
Do You Mind Living Close To Neighbours?
Great fences make great neighbours, but do shared walls make great neighbours? If you are noise-sensitive and prefer a higher level of privacy, apartment living might not be for you. Living in a townhouse or apartment means you are closer to your neighbours and will see and hear more of them.
Do You Need A Garden?
A house with a large backyard offers plenty of space to move around and the opportunity to grow plants, but it also requires some maintenance, which if you are outsourcing your gardening can come at a premium cost. If you only need a few potted plants and a spot for a barbecue, most apartment balconies would meet your needs quite well. Townhouses can provide the best of both worlds, with smaller outdoor areas to manage while still featuring backyards.
How Important Is Privacy To You?
Privacy can mean different things to different people. Being happy to wave to a neighbour in the driveway might be your maximum level of comfort. But if you like getting to know your neighbours and sharing common spaces, then maybe apartment living is for you.
Do You Plan To Ever Rent The Property Out?
Renting an apartment or townhouse is generally easier than renting out a detached house. The lower maintenance requirements make these properties more appealing to renters. Additionally, their desirable locations and amenities can make them a great investment if you plan to rent out the property.
Which Has The Higher Resale Value?
If you plan to buy something other than your forever home, it is essential to ensure that you purchase the right property type for good resale value. Generally, houses appreciate more in value than townhouses or apartments.
Is A Unit The Same As A Townhouse?
Although a unit and a townhouse have some similarities, they are distinct types of residences. A unit typically shares more common areas among owners.
It is managed by a body corporate that oversees the maintenance of these shared areas and facilities. In contrast, a townhouse may share walls with neighbouring units, but it generally does not have common areas. As a result, it typically does not require a body corporate for management.
Final Words
Choosing the right type of home is essential for successfully entering the property market or upgrading your current property.
In conclusion, choosing between a townhouse, house, or apartment depends on your lifestyle, budget, and long-term goals. Each option offers unique benefits and challenges, so consider your personal preferences and financial situation. By understanding the local market and weighing the pros and cons, you can make a well-informed decision that suits your needs in this vibrant city.
If you would like to learn more about what comes in a Melbourne, Victoria townhouse, reach out to the Sienna Homes team for more information.