In the 12 months to February 2013, approvals for houses in Australia remained nearly unchanged, while those for units increased by 36 per cent.
With record-low interest rates, there’s never been a better time to find the right loan. However, one record leads to another. Because of the cheaper rates, Australia is now experiencing escalating property prices, which means the sizes of individual home loans are swelling, according to the Australian Bureau of Statistics.
The Australian dream of owning a home and the success and security that is derived from that has changed somewhat.
A report from property consulting firm Urbis shows that during the 12 months to February 2013, approvals for houses in Australia remained nearly unchanged, while those for units increased by 36 per cent.
One of the main reasons for this shift is the affordability. For example, the Domain Group House Price Report for the March 2015 quarter found that the median price for a house in Sydney was $914,056, as opposed to $609,800 for a unit.
In light of this, here are some advantages and disadvantages of buying a unit.
- Close to amenities and cities
- Easy access to public transport
- Less reliance on fuel
- More affordable
- Better sense of community
- Better lifestyle (in some cases with swimming pools, gyms, tennis courts for example)
- No parking (in some cases)
- Lack of lawn and/or outdoor area
- Prices for houses increasing faster than units year on year
- Smaller living area