do units and house prices in the same suburb increase at the same rate?

[beachgurl]

I've just had an offer accepted for a semi-detached home in the eastern suburbs. I currently own a unit in the same suburb. Looking at our figures, we will be living close to the line if we sell our unit and buy the semi. We are concerned that if we don't buy a semi now, we will never be able to buy one as the prices are increasing all the time.

for those that follow growth trends and have seen a few cycles, is there usually the same sort of price gap (%) between units and houses at any given time? Not sure whether to continue to live quite comfortably in a large unit (although hating paying ever-increasing strata) and buy a semi down the track, or to pounce now if trends show that we may never again be in the position to afford to buy our own block of dirt here.

 

[13910]

Flat answer to your question is no. House prices go up at one rate, units at another; units go up, while houses go down; nothing happens to either - all of these are possible.

Simple fact is, you are talking about buying for emotional reasons, not investment reasons. You need to teach yourself why that's a bad idea, learn what the right reasons to buy are and during this you will discover the answer to your own question.

Location, time frame, demographic and demand are just some of the things that will impact your answer.

Cheers
Greg

 

[craigb]

its a very interestin question, lets say there was a three bed unit and a three bed home same location , one with land and the other not call the land 400k and the unit 300k if they bothe moved at 10% then the land at 440k and the unit at 330 k one makes 40k and the other makes 30k but some where along the line lets say they increased by 100% land at 800k and unit at 600k there is a defined % seperation in these values , i don't do units but a good question nontheless, others might assist better,?