Many people could get confused with the types of properties in Australia. House? Terrace? Duplex? Are they the same? Today, we will have a look at the different property types in Australia.
Apartment
Apartments normally have swimming pool, gym and complete security system. And it has its own strata management company. Australia stipulates that the elevator should be installed in apartments above 3 levels, so it usually ranges from four levels to dozens of levels, and there are one or more apartments on each level. Generally speaking, apartments have sound security, due to their anti-theft facilities, and equip with access cards. Apartments are more popular with renters because they are safe and have good property management, and they have good locations for shopping and transportation. Meanwhile, the rent is higher, and there is no land tax, so investors tend to choose them as well.
Unit
Unit is a downgraded version of the apartment, which means people share yard and public facilities. Most of the units are of two or three levels. The old units normally have no elevators or security system. Compared to apartments, its strata fees are lower. So the overall costs are lower than apartments, so it could be easy to find a renter.
Studio
Studio refers to a unit or an apartment that has open plain floor with no interior wall partition. Its kitchen, living room and bedroom are an entirety, plus an independent bathroom. Studio is small. Its open space is very popular among students and individuals.
House
House is the most common property type in Australia. It presents a yard, a single building and a household. House is usually one or two floors, a large area with many rooms and its own yard. House belongs to torrens title. Each House is built independently and homeowners have land use rights, therefore they can rebuild their houses to pursue unique and various styles according to their personal preferences. The most important is that a house has independent property rights. That means owners can possess permanently (except that ACT has 99 years of property rights) so that they can leave to the next generations. Therefore, it is favored by investors.
Duplex
Duplex can be classified as torrens title like a house, or a strata title like a townhouse. Just like splitting a house from the middle into two houses, they are usually symmetrical to each other. They normally share a wall, and the area is ranging from about 200 square meters to 500 square meters.
Townhouse
Townhouses refer to multi-level houses connected to each other by a common wall. Townhouse belongs to strata title. Property size is limited, and owners do not own the land. Its typical feature is that the first floor is generally the living room, kitchen and bathroom, while the second floor is bedrooms. Besides, its design could be monotonous, and owners cannot reconstruct it, but it has a great advantage in price.
Villa
Villa refers to single-level townhouse, with multiple properties on the land, and two properties could share the same wall. Which means neighbors are next to you and people could share one public area and other public facilities.
Semihouse
Semihouse is actually a single-layer Duplex. In other words, two separate one-floor rooms are connected and share a wall, and semihouse also has independent property rights.
Granny Flat
Granny Flat is a secondary dwelling attached to a main house on the same land, so its area is not big. It can be used for elder parents, or simply as an area to entertain friends. Recently, granny flats are emerging, because people want to increase their living area or earn extra rental income, which is considered a low-cost and high-return investment. However, investors need to know that when applying for home loans, granny flat can not be treated separately, as it belongs to one title as the main house.
Terrace
Terrace is a row of multi-level rooms, and is similar to a townhouse. Generally we can only see these unique Victorian buildings in some old urban areas in Australia, and they could be built even one hundred years ago. Nowadays, most terraces are classified as heritage buildings. They are close to downtown with intense historic customs, so they are very popular among locals, and pricy at the same time. Most terraces don't have any car spots, which could be a downside for investors.
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