What type of properties can you buy?

When it comes to buying a property in Australia, you might just find yourself spoilt for choice as you consider the wide range of property types on offer. 

Aside from choosing between a new or established house or apartment, you also have the option of buying off the plan or opting for a house and land package.

The right type of property for you will be based on your individual circumstances, taking into account factors like your budget, lifestyle, and future needs. To help you understand the various property types on offer, we’ve put together a simple guide to the type of properties you can buy.

Off the plan properties

Purchasing an off the plan property means committing to buy a home that’s yet to be built, based on the architectural plans. 

An increasingly popular choice - particularly in urban areas - here are some things to consider with this type of purchase:

PROS:

• Modern design and amenities: Off the plan properties will generally feature contemporary designs and amenities, so consider whether this is important to you.

• Potential tax benefits: With off the plan purchases, buyers may be eligible for certain tax advantages, such as depreciation deductions.

• Stamp duty savings: In some states, buyers can access stamp duty concessions if buying off the plan.

CONS:

• ‍Construction delays: One potential risk with off the plan purchases is the fact that construction may be delayed, impacting your move-in timeline and financial planning.

• Differences in the finished product: When buying off the plan, it’s important to note that the final design may differ from the initial plan.

House and land packages

House and land packages combine the purchase of land with the construction of a house. 

This option is common in new suburbs or developments and can be an attractive choice for families and other types of buyers. 

If opting for a house and land package, consider:

PROS:

• The ability to customise: You’ll often have the chance to customise the design and layout to suit your preferences, for a home that’s tailored to you.

• More convenience: By having a single contract for both land and construction, a house and land package simplifies the buying process.

• Location advantage: In many cases, house and land packages are based in newer suburbs, potentially with good growth prospects.

CONS:

• Additional costs: Be mindful of hidden extras, such as landscaping or driveway installation costs.

Apartments and units

From the coast to the city, apartments are a popular choice for those seeking a more manageable property or without the need for a larger space. 

Pros and cons of apartments include:

PROS:

• Building amenities and facilities: Apartment complexes may offer additional shared facilities such as pools and gyms.

• Less maintenance: Unlike a house, the maintenance for an apartment is usually handled by the body corporate, meaning less hassle for the owner.

• Location advantage: Apartment complexes are often situated close to city centres, offering easy access to amenities.

CONS:

• Strata fees: Apartment owners typically have to pay strata fees for building upkeep and communal services, which can potentially be costly.

Established properties

Established properties are pre-owned homes. These types of properties can vary significantly in age, style, and condition. 

Here are some factors to consider:

PROS:

• Character and history: An older established property may have more charm and feature unique architectural elements that add character.

• Immediate availability: Unlike buying a new home off the plan, purchasing an established property means you don’t need to wait for construction to finish before you move in.

• Renovation potential: You may be able to add value to your established property through renovations and additions.

CONS:

• Maintenance requirements: Older properties are likely to need more maintenance and upkeep compared to new homes.

From the allure of a brand new construction to the customisation opportunity of a house and land package or the character-filled charm of an established home, choosing the right type of property for you involves careful consideration of the pros and cons.

By taking the time to explore all your options, you can find the perfect property and enjoy an exciting new chapter in your dream home.

Keen to learn more about the home-buying process? Check out our other articles and stay in the know about all things home loans.

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This article is intended to provide general information only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Please consider seeking financial advice before making any decision based on this information.‍

Unloan is a division of Commonwealth Bank of Australia.

Applications are subject to credit approval, satisfactory security and you must have a minimum 20% equity in the property. Minimum loan amount $10,000, maximum loan amount $10,000,000, and total borrowings per customer across all Unloan loans is $10,000,000. (For purchase loans a minimum 10% equity is required - however a Lenders Mortgage Insurance (LMI) premium and higher interest rate apply. In some cases, depending on the property’s location or type, an LMI premium may also be required for LVR between 70.01% to 80%). For loans with Lenders Mortgage Insurance (LMI) the minimum loan amount is $10,000, maximum loan amount is $3,000,000 and total borrowings per customer across all Unloan loans is limited to $3,000,000).

Unloan offers a 0.01% per annum discount on the Unloan Live-In rate or Unloan Invest rate upon settlement. On each anniversary of your loan’s settlement date (or the day prior to the anniversary of your loan’s settlement date if your loan settled on 29th February and it is a leap year) the margin discount will increase by a further 0.01% per annum up to a maximum discount of 0.30% per annum. Unloan may withdraw this discount at any time. The discount is applied for each loan you have with Unloan.

*At Unloan, we do not charge any annual, application, banking, account, transaction, late or exit fees. In certain circumstances you may be required to pay a Lenders Mortgage Insurance (LMI) premium. Learn more about why this is applied and how it works. Government fees may also apply. Learn more about government fees here. Your current lender may charge an exit fee when refinancing.