Not sure how it is in other states, but here in SA council rates are effectively capped for strata units/villas. So, despite having to pay body corporate fees, you end up ahead on the deal with very low council rates.
What have I learn so far? I have learn that it does not matter if I invest in house or unit, the important factors are location and action! But the most important thing is the timing/condition of the market.
I bought my house at end of 2004, beginning of 2005. It was the cheapest house I could afford in the area I wanted (personal choice). It was advertised for $369K, and I got it for $340K. What a bargain! I was so thrill. Now, thinking back, I was stupid to buy at the period when prices were high. (I think Real estates agents tend to overpriced the home values. Buyer would feel that they are getting a bargain when given a discount of $20-$30K). Anyway to cut the story short, houses in the my area dropped by about 10% by 2007, and has only swing back in 2009 (thanks to Mr Rudd 14K grant).
I will give you an example of my research, year 2007, a 3br house advertised for $335K, 31km from sydney, near bus route, fully renovated. Back in 2007 it was rented, and was a real mess. However, i see it has potential being in a quite street. It has large bedrooms and an extra toilet. I offer $315 but Agent said owner wanted at least $320, and withdraw listing to another agent. Nobody buy this property at the end. Now Feb 2010, and after renovation (I think total costs around $20-$30K), it advertised for $445. Would I buy this now? No thanks.
I am choosing between a house and unit too but in the end of the day it’s what you can afford and you can make most out off. Normally house but depends on the area and mostly affordability.
