Should I Buy a House, Unit or Apartment?
House, Unit or Apartment? Which Property Type Will Actually Make You Richer (And Which Won’t!)?
For many first-time buyers and new investors in South Australia, the question isn’t whether to enter the property market - it’s what type of property to buy. A house, a unit, or an apartment?
It sounds straightforward, but once you dig a little deeper, the waters get murky fast. Each property type comes with its own set of trade-offs - space versus convenience, upfront costs versus ongoing fees, lifestyle benefits versus long-term growth.
And for buyers hoping to build wealth, the stakes are even higher. Make the wrong choice, and you could be stuck with a sluggish asset that fails to appreciate - or worse, becomes hard to sell.
This guide is designed to help you understand the real-world pros and cons of houses, units, and apartments so you can make a confident, strategic decision based on your personal goals - not just market noise or emotional impulse.
The House: Independence and Long-Term Growth
First up, houses.
Why? Because buying a house is often seen as the ultimate goal.
It’s where you’ll typically find the most land, the greatest freedom and the strongest long-term capital growth.
But that freedom often comes at a cost.
Houses tend to suit buyers with a long investment horizon, those looking for stability, and anyone wanting control over their property.
They offer full ownership of the land, which generally drives long-term value, and families tend to favour houses, which can make resale demand stronger.
However, higher purchase prices and the responsibility for every bit of maintenance - from cracked tiles to leaky roofs - can weigh heavily.
And in some suburbs, rental yields for houses may not stack up as well as those for more compact dwellings.
Natalie Jones, Sales Director at We Connect Property, explains.
"If you're in it for the long haul, the real value is in the land," explains Natalie.
"But too many buyers focus on the building, but it isn’t just about buying bricks and mortar and a place to live. A house will need maintenance - sometimes costly maintenance - but it's the land underneath that does the heavy lifting in terms of capital growth. That’s where long-term wealth usually builds."
Why people choose houses:
- They offer full ownership of the land, which generally drives long-term value.
- There are no strata rules or body corporate decisions to worry about.
- Families tend to favour houses, which can make resale demand stronger.
What to watch out for:
- Higher purchase prices, especially in desirable suburbs.
- You're responsible for every bit of maintenance - from cracked tiles to leaky roofs.
- Rental yields may be lower in some suburbs, depending on tenant demand.
The Unit: Balance and Location
Units can be a smart middle ground.
They’re often more affordable than houses, easier to maintain, and available in locations that would be unaffordable if you were shopping for a standalone home.
For many, they offer a practical balance: you get access to good suburbs, a manageable property footprint, and shared maintenance costs.
Units also tend to hold appeal with a broad range of tenants and buyers - from first-home buyers to downsizers.
That said, they come with their own limitations.
Strata fees, while generally more modest than those for apartments, still chip away at your returns.
Your ability to renovate or alter the property’s exterior is often also restricted, and in some markets, growth can be slower than for houses.
“Units often hit the sweet spot for homebuyers or investors who want exposure to good suburbs but can’t stretch to a house,” Natalie notes.
“Plus, they often surprise people with their performance.
“For instance, some older-style units in tightly held suburbs - especially where land is scarce and demand is rising - surprisingly outperform newer apartments because they sit on prime land, even if it's shared. It’s the land component that really matters.”
Why people choose units:
- Better affordability in well-located suburbs
- Reduced maintenance responsibilities
- Broader appeal to a mix of tenants and owner-occupiers
What to watch out for:
- Ongoing strata fees, even if modest
- Limited ability to renovate or alter exterior features
- Capital growth may lag in comparison to detached houses
The Apartment: Lifestyle and Affordability - With Caveats
Apartments tend to draw attention for their affordability and inner-city lifestyle perks.
For investors, they can offer solid rental returns in the right areas. But they’re also the most complex type of property to evaluate correctly.
Apartments shine when it comes to location and convenience.
They tend to be more affordable in premium areas, enjoy strong rental demand and offer amenities that attract tenants.
But oversupply risk, higher body corporate fees and limited long-term growth in some developments can quickly turn an attractive deal into a poor performer.
Natalie adds, "If you’re looking at apartments purely for price, stop and dig deeper. Some deliver excellent returns, but others are ticking time bombs - high strata fees, low resale demand and minimal growth.
“Some can perform well, but the devil is in the detail. You need to be clear on what you're really buying - because you're not buying the land, you're buying access to a lifestyle.
“If the development is oversupplied or the building quality is poor, future growth becomes an uphill battle."
Why people choose apartments:
- Lower price points in prime locations
- Steady tenant demand from students and professionals
- On-site amenities like pools, gyms, and secure access
What to watch out for:
- High body corporate fees that reduce net returns
- Oversupply risks in some urban pockets
- Potential difficulty in resale if the area becomes saturated with similar properties
Matching Property Type to Your Goals
The right property depends entirely on your individual circumstances.
For homebuyers, it’s about lifestyle and future plans. For investors, it’s about balancing risk, return and management effort.
If you're a growing family wanting space, a house might be worth stretching for.
If you're a professional craving a walkable lifestyle, a well-located unit or apartment could be ideal.
For investors, the choice often comes down to whether you're chasing immediate rental income or building long-term equity.
“Buyers often come in with a set idea - like ‘I must buy a house’ – but it’s best to start with your outcome in mind,” Natalie advises.
“If you don’t know whether you’re aiming for lifestyle, yield or capital growth, then any decision you make is likely to be reactive.
“When we help clients define that goal clearly, the right property type often becomes obvious.”
Beyond the Basics: Other Influencing Factors
Sometimes it’s not just about the property type - it’s about how you want to live and manage the property.
Houses typically involve higher insurance costs, more maintenance, and more hands-on management - but they also offer autonomy and often more capital growth.
Apartments are on the other end of the spectrum: lower effort, but shared control and fees that can eat into profits.
Units tend to offer a bit of both: lower maintenance without the complexity of a high-rise.
Liquidity is another issue to consider. Houses generally appeal to a broader market, making them easier to resell.
Apartments, especially in high-density areas, can face tougher resale conditions, particularly if newer developments are coming online.
“A lot of buyers underestimate how much emotional bandwidth different property types demand,” says Natalie.
“That’s why I always tell clients: don’t look at price alone,” says Natalie.
“Think about how the property will work for you - not just now, but five or ten years down the track.
“Strata might sound annoying, but for some people, outsourcing maintenance is worth every cent. For others, the autonomy and control that comes with a house is non-negotiable.”
Points to consider:
- Lifestyle Trade-Offs: Houses provide privacy and space, but with higher effort. Apartments are convenient but come with shared living.
- Resale Liquidity: Houses often attract broader buyer interest. Apartments may face more competition on the resale market.
- Insurance Costs: Houses can carry higher premiums. With strata, the building is insured - but you'll still need individual contents and liability cover.
- Maintenance vs. Strata: Weigh the cost of strata against the effort (and surprises) of maintaining a standalone home.
Financing and Tax Considerations
Financing and tax also play a big role in what makes a smart purchase.
Lenders may apply stricter terms to some properties - particularly smaller apartments or those in large developments.
Stamp duty is calculated similarly across the board, but the final cost can vary significantly based on property type and location.
From a tax perspective, newer properties - often apartments - tend to offer greater depreciation benefits for investors, which can help offset rental income.
But those chasing capital growth may find that older houses on larger blocks deliver more equity over time, even if the short-term tax benefits are lower.
Understanding your goals helps here too.
Are you aiming for short-term cash flow or long-term capital appreciation? Or do you just want to find your forever home and settle down?
Your answer should help determine which property structure supports that strategy best.
“We often see both homebuyers and investors underestimate holding costs - especially when negative gearing or strata fees are involved,” Natalie says.
“The key is modelling out your worst-case cash flow scenario. If the numbers still stack up, you're buying with clarity, rather than taking a huge risk.”
How you finance your property - and what you can claim back - matters as much as the property itself, so it pays to keep in mind:
- Loan Conditions: Lenders can be more cautious with small apartments or those in high-rise complexes.
- Tax Deductions: Newer buildings may offer stronger depreciation benefits, especially apartments.
- Stamp Duty: Applied across all property types, but cost will vary by location and price point.
- Cash Flow vs. Growth: Your loan structure and tax planning should reflect your long-term strategy.
The Role of a Good Real Estate Agent
Choosing the right property type isn’t a simple decision - it’s a strategy.
A good agent helps ensure your decisions are driven by data and aligned with your long-term goals.
They can help you filter out hype, assess a property’s real potential, and understand local growth patterns.
They also know what sells - and what doesn’t - and can spot issues you might not see in an online listing or a 15-minute inspection.
“People assume the market moves as one, but it doesn’t,” Natalie says.
“Even within the same suburb, two properties can perform very differently. A good agent reads that nuance - so you don’t have to learn it the hard way.”
“You don’t need to know it all,” she emphasises. “You just need someone in your corner who does.”
At the end of the day, there’s no single best property type - but there is a best fit for you.
Houses tend to deliver better capital growth over time, especially through land value, but they require a higher upfront investment and greater maintenance responsibility.
Units offer a sweet spot between price, upkeep, and location.
Apartments can work well for certain investor profiles - but require extra scrutiny.
Remember, if you’re trying to decide, start with your goals.
Define what success looks like for you - whether that’s lifestyle satisfaction, rental return, long-term growth or a bit of each - and use that to guide your property choice.
Because sometimes, the best property isn’t the one with the best price - it’s the one that will support your future best.
Not sure which property type is right for you?
Our experienced team can help match your budget and goals to the right home or investment property! Connect with us to find out more.
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DISCLAIMER: All recommendations made by We Connect Property are general in nature and not to be relied upon as legal or financial advice. To ensure accuracy, we always strongly recommend seeking independent, professional advice tailored to your specific situation before making any investment or financial decisions.