Investors have debated for years on which is the smartest investment, houses or units? Here we explain the pros and cons of each option to help inform your strategy.
With data from CoreLogic and more than 25 years of experience in observing the property market, DPN offers insight for investors as to which choice produces the best long-term returns.
According to the ABS, single-person households are projected to increase sharply over the next decade. As more people want the convenience of living in or near cities, units offer a practical choice.
All data shows that houses generally accrue greater long-term capital gain than units. As an example, the capital gain for Sydney over the past 25 years equates to a 7.6% annual growth rate for houses. For units, the annual growth rate was lower at 6.3%.
All data shows that houses generally accrue greater long-term capital gain than units.
The key is to conduct thorough research, as there isn’t just one property market, and there are pros and cons with each choice. However, the data shows that houses deliver the best long-term returns when you select the right house and area.
For more comprehensive information, see: Units or houses: the eternal investment question.
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