House, Apartment, or Townhouse? Weighing the Pros and Cons

When it comes to investing in a property in Australia, there’s a lot more to consider than just houses and apartments. Whether you're looking for a family home or an investment property, it’s important to understand the differences between property types—like townhouses and terrace homes—so you can make the best choice for your goals and lifestyle.

Australians are fortunate to have a wide range of housing options available, with 10.9 million private dwellings across the country. This vast selection means there’s something to suit every budget and lifestyle, so it’s worth exploring all your options before making a decision.

Let’s take a closer look at the most common types of housing and their unique features.

Houses – Freestanding, Semi-Detached, or Terrace?

Houses are the most popular type of property in Australia, making up around 70% of private residences. However, not all houses are the same.

• Detached houses are standalone homes, offering maximum privacy and space.
• Semi-detached houses share a common wall with a neighbouring property, commonly seen in terrace houses built in the 19th and 20th centuries.

Pros of Houses:

• Historically, houses tend to experience higher capital growth compared to other residential property types.

Cons of Houses:

• Houses usually come with a higher price tag compared to apartments.
• As of now, the median price for a house in Australia sits at $879,680, while apartments have a median price of $669,700.

Apartments

Apartment living has become increasingly popular, with 16% of Australians now calling an apartment home. Since mid-2020, searches for apartments have surged, accounting for nearly 40% of all property searches in late 2024, according to realestate.com.au.

Pros of Apartments:

• Generally more affordable than houses, making apartment units a great option for first-time buyers.
• They offer low-maintenance living—no lawns to mow or major upkeep concerns.

Cons of Apartments:

• Strata levies can add to ongoing costs, particularly in newer developments with premium facilities.

Townhouses and Villas

If you’re not keen on apartment living but find houses out of your budget, townhouses and villas might be the perfect middle ground. Townhouses represent 13% of Australia’s housing market. Generally, townhouses are two-storey dwellings, while villas are single-storey homes.

Pros of Townhouses and Villas:

• They often include a small garden or courtyard, offering more private outdoor space.

Cons of Townhouses and Villas:

• As part of a strata scheme, owners need to be mindful of strata fees.

Duplexes

A duplex is a modern take on semi-detached living. Typically built on a larger block, a duplex features two adjoining homes connected by a single wall.

Though not as common as houses or apartments, duplexes offer a more affordable option, often costing nearly half the price of a freestanding house.

Pros of Duplexes:

• They offer a balance of privacy, affordability, and low maintenance.

Cons of Duplexes:

• According to REA Group, owners of both sides must agree on a shared building insurance policy, which is an important factor to consider before buying.

Let’s Find Out What You Can Afford

Choosing the right property is a personal decision that depends on your preferences and financial situation. Often, finding the perfect home involves a bit of compromise.

At Osinski Finance, we’re here to help you understand your borrowing power, navigate property valuation, and guide you through your property journey—whether you’re a first home buyer or exploringyour financing options. 

Give us a call today to find out how much you can afford—we might just help you find your dream home sooner than you think!

Disclaimer: The content of this article is general in nature and is presented for informative purposes. It is not intended to constitute tax or financial advice, whether general or personal nor is it intended to imply any recommendation or opinion about a financial product. It does not take into consideration your personal situation and may not be relevant to circumstances. Before taking any action, consider your own particular circumstances and seek professional advice. This content is protected by copyright laws and various other intellectual property laws. It is not to be modified, reproduced or republished without prior written consent.