Rishi Khandelwal provides an overview on whether you are an international student, investor or new to Australia you might be interested in the housing market. Rishi Khandelwal states that there are broadly 3 categories of homes in Australia and all have their own advantages and disadvantages. The first category is a free standing home, where the owner holds the title to the land. It is disjointed residence with its own boundary without any shared walls with neighbors. According to Rishi Khandelwal, the advantage to the owners are that land appreciates in value over time, so there is capital growth in such properties. There is also another advantage there is no body corporate or strata management fees. The upside for tenants or occupants living in there is that they have privacy and own space. The disadvantage is that it comes with your own front yard and back yard, which requires maintenance. It may also be not attractive for certain tenants who prefer to be in apartments or units closer to the city.
Next we have the townhouses. Rishi Khandelwal suggests that this is the next level down from free standing homes. In most of the places the owner does own the land but the houses are joint to the neighbors sharing a common wall. In Rishi Khandelwal’s opinion, the advantages are that it is cheaper to get into one of them compared to your own home. Some of them don’t come with any strata or management fees. But the disadvantage is the privacy due to shared common wall and it has less space compared to the houses.
Finally you have the units, which are basically apartment style residences within a complex. For the same suburb and size, they are the cheapest option. Rishi Khandelwal says that other advantages include less maintenance, being part of a complex community and easy to rent out. The obvious disadvantages are not having your own space and the values take longer to appreciate.
In summary, Rishi Khandelwal states that there are different types of housing and each is designed to appeal to a certain audience – renters, first home buyers, families, downsizers, investors and students. It depends on one’s personal circumstances and of course budget. Rishi Khandelwal also states that while these three types of housing maybe similar to other countries, what makes Australia different is that vacancies for all types of properties are generally low. In many places, Rishi Khandelwal states that the demand for housing is more than supply of stock. This leads to stable rent and has attracted international investors from all over the world.