What type of property makes a smart investment? 

Investing in a townhouse

Townhouses share one or more walls within a row of houses.
 

Some general benefits: 

• More space and privacy than units

• Reasonable price point

• Less maintenance than houses 

• Higher rental demand and returns than units 

• Non-strata or low strata levies 

• Closeness to transport and schools could drive growth.
   

Some general drawbacks:  

• Less land value and growth than houses 

• Limited land size and scope for renos 

• Shared land and common property, more potential for disputes

• Possible Noise from shared walls 

• Some may have strata levies

• No body corporate? You’ll need to negotiate with neighbours over shared spaces 

• More building restrictions than houses

• More maintenance than units
   

Investing in an apartment or unit

Some general benefits

• Lower price point

• High demand areas can offer higher rental yields than townhouses

• Lower maintenance and responsibility than townhouses

• Shared facilities like pools, gyms and gardens. 
   

Some general drawbacks: 

• Less land value and slower capital growth than townhouses 

• Strata fees, rules and regulations 

• Lower rental yields from less space, privacy and storage 

• More competition and oversupply risk in some areas

• Do your homework e.g. strata manager emails could reveal a large cost that’s yet to reach the minutes (giving owners the opportunity to sell first)

• Ask us before you bid: some addresses may be exempt, like tiny flats, company titles, certain areas and blocks.
   

Land as an investment

General benefits:

• You're the landowner 

• Less competition from other buyers 

• Larger lot or nicer views for a lower price point 

• If rezoned, the value could increase

• Market value might rise (capital growth strategy) 

• Potential to add buildings or subdivide to create extra monthly income, or to help family onto the property ladder

• Fewer costs, less maintenance  

• Build when you have more funds.

   

Some general drawbacks:

• Rental income and cash flow only start after building

• Land value could fall after zoning changes

• Added costs can include public liability insurance and fencing 

• Independent valuations and surveys  

• Council green light needed for building plans

• Chat with neighbours for the property lowdown

• Ensure land title’s clear of liabilities 

• May not have mains water, electricity, sewerage and internet  

• Land can attract fewer buyers when selling

• Tax treatments for vacant land differ, check with your tax advisor

• Not all land qualifies for a loan, check with your lender.

   

House & land package investments

General benefits:

• Your build is under warranty 

• Small builder's deposit upfront, the rest when the build's done

• Price locking can gain more value at completion in a high growth market

• Depreciation could be a deductible tax expense – get tax advice

• Government grants like New Home and First Home Owner.

Some general drawbacks:

• Developers get their share, eating into your financial return

• Some lots can be on the smaller side

• Potential construction delays

• Do your homework on the builder and quality of build 

• Infrastructure like schools and transport might take a while to catch up

• Check if landscaping, fencing etc are part of the deal 

• Check rent for similar properties in the development 

• Little say on new neighbouring properties  

• In population growth areas, continual new builds could stagnate value

• Ask your lender how the final value could affect your LVR⁺ 

• Ask your legal agent what happens to your price lock if the build’s delayed, or if your builder goes bust.

Each State and Territory has its own take on property type definitions. Your local council or town planner can fill you in.

• Villas are often strata titled, similar to townhouses. 

• Terraces could be Torrens title or strata title, depending on the age. 

• Duplexes are one building, two homes, often with a shared wall. Titles can be single or split, affecting ownership and sale options.

Defence Housing 

Within 30km of a Defence spot? You could build or purchase a quality rental property to lease out.

NDIS investment properties

The Government guarantees a minimum rental return if you’re purchasing property as part of the National Disability Insurance Scheme.

Commercial property

Buying property under your business name? Your local business Property Specialist help you plan your move.