In the 1950’s, the Australian dream may well have been to have a family with 2 kids in a 4-bedroom house on an acre block of land. But is that really realistic any more, and does it suit you?
Buying a house is still a much more typical consideration for buyers than buying a unit. Unit sales only make up 20% of all sales in Australia. However, the demographic shift towards single-occupancy properties, coupled with the ageing population might soon put an end to that.
In preparation for a potential change in the market, here are 5 reasons you should shift your gaze from 4 walls and a roof and set your sights on a unit instead:
1) They’re Much More Affordable
Instead of breaking your back buying a property close enough to the city for you to get to work and back, a unit is much more affordable. They’re much cheaper because they’re smaller and you don’t buy the freehold rights to the land along with the property.
A lower price-point in the market may well be more appealing to first-time buyers, too, as it gives them a chance to get their foot on the ladder without inheriting high interest rates from a small percentage deposit on a house.
2) Running Costs are Considerably Lower
It’s not just the upfront cost of a unit you need to know about – you’re also going to save on monthly costs too.
A lower footprint means you’re going to have lower cooling and heating bills, as well as fewer places where you’ll need maintenance. Additionally, since units usually have a small shared courtyard or balconies, you’re not going to have to factor in garden upkeep either.
Additionally, modern buildings such as units are usually constructed with airflow in mind, which will drop your costs down even further.
3) They’re Very Low Maintenance
If you travel frequently or are away from home for long hours each day, a unit could be the ideal choice. Without a garden to tend to, you can go away for extended periods of time without worrying about the grass withering or flowers dying.
4) There’s a Strong Sense of Community
Senior Australians are usually attracted to units, as they promote a strong sense of community, friendship and togetherness. It could be a friendly wave in the morning or a cup of coffee in the afternoon, but units make it easy to stay in contact and build relationships with your neighbours.
5) Strong Rental Yield and Gains
Industrial increases across Australia, as well as increased government funding and development projects, means that more people are looking to rent property than ever. Demographics are also shifting from family homes to single-occupancy dwellings, too, which is making units a much more attractive proposition for property buyers.
Lower overheads also often mean that units can provide stronger rental returns than houses or apartments and they show solid appreciation, meaning you can be confident that you’ll make a profit selling them down the line.
The information and links provided on this website are for general information only and should not be taken as constituting professional advice. This information does not take into account the financial situation or particular needs of individual readers. Before making any decisions about matters discussed on this website, you should consider whether it is suitable for you in light of your own circumstances, and seek appropriate advice.