Widely considered to be the great Australian dream, home ownership is perceived as a pathway to financial stability and something to aspire to.
Whether you are buying property as an investor or an owner occupier, choosing the right property type will help to maximise your return on investment and ensure
the great Aussie dream is a sweet dream, not a nightmare.
What are the 5 types of property?
When you decide to buy property there are things to consider before you even start looking. What type of property should you buy?
1. Residential
2. Commercial
3. Industrial
4. Land
5. Special purpose (eg. lifestyle villages for over 55's)
Investing in commercial or industrial property or land with development prospects should always be prefaced with sound advice from financial and legal experts.
If you’re looking for a property to live in or rent out, you have different residential property types to consider.
Residential property types explained
Buying residential property – a place to call home or a rental property - is an investment in your future happiness and security. Residential property includes:
1. Freestanding houses
2. Apartments
3. Units or villas
4. Townhouses
5. Duplex/Semi-detached homes
6. Residential land
Which property type suits you?
Before purchasing a home to live in consider your preferred lifestyle, the amount of space you need now and in the foreseeable future, and the location. Remember:
- Freestanding Torrens title houses don’t have ongoing corporate maintenance fees like Community title and Strata title properties, which may affect your budget
Freestanding houses with land generally increase in value faster than other property types in the same location. - Townhouses and semi-detached homes share walls, and while units or villas are sometimes freestanding, they often share walls too. These properties typically increase in value slower than freestanding houses with land in the same location. They are ideal for buyers who prefer a low-maintenance or lock-up-and-leave property.
- Design and location make a big difference to liveability – some units, villas and townhouses have surprisingly spacious floorplans, lovely courtyards for outdoor living, or nearby spaces you can enjoy such as the beach or nature reserves.
The key is to know your options and what works best for you. Real estate agencies such as Boffo often have off-market homes on their books and obliging real estate agents who will help you find your perfect home. But first, you need to know what you are looking for.
What to look for?
If you’re buying a home to live in, a rental property, or a block of land to build on, they should tick the following boxes:
Location - that old saying, “location, location, location” never goes out of style. Location is the key to capital growth. And a good location adds to your quality of life!
Capital growth - look for suburbs experiencing consistent capital growth or a home you can improve over time. Whether you sell in three years, thirteen or thirty, strong capital growth can set you up for your next stage of life.
Potential rental returns - if you’re buying as an investor, you want an appealing property with good rental prospects, strong rental yield, location with good growth.
Improvement prospects - a home with scope for improvement will reap rewards when it’s time to sell. It doesn’t have to be a ‘renovator’s delight’ – but simple improvements can greatly increase property value.
Public transport - whether you need it or not, nearby public transport will be an asset when you come to sell.
Local amenities - properties near good schools, local shops, leafy reserves and public transport have wide appeal – all positive selling points when you’re ready to move on.
Ready to start looking? Check out our helpful List of Things To Look For At Open Inspections. And remember, if you’re buying an investment property there’s no-one better to manage your property than the on-the-ball Property Management Team at Boffo!
Give Boffo a call, we’d love to help you realise your great Aussie dream.
