One of the most common questions GeeVee receives: should I buy a house, apartment, or townhouse? The honest answer is: it depends on your strategy. Here is the complete breakdown.
At a Glance
| Metric | House | Townhouse | Apartment/Unit |
|---|---|---|---|
| Entry price (inner-north VIC) | $1.2M-$2.0M | $750k-$1.2M | $400k-$750k |
| Gross rental yield | 2.5-4.5% | 3.5-5.0% | 4.5-6.2% |
| Land content | High | Medium | Low-None |
| Capital growth (10yr avg) | Highest | Medium | Lowest |
| Depreciation benefits | Low | Medium | High |
| Body corporate fees | None | Low-Medium | Medium-High |
| Maintenance responsibility | Full | Partial | Low (strata) |
| SMSF suitability | Good | Good | Good |
Why Houses Win Long-Term
Land appreciates. Buildings depreciate. A house in Northcote with 400sqm of land at $1.72M has an embedded land component of approximately $1.3M-$1.4M. That land will grow in value over time independent of the building condition. This is the fundamental reason houses outperform apartments over 20+ year periods.
Why Apartments Win for Yield
Inner-north Melbourne apartments yield 4.5-6.2% versus houses at 2.5-4.5%. The cash flow advantage is significant — on a $500k apartment at 5.5% yield, you receive $27,500/year in rent. On a $1.5M house at 3.5%, you receive $52,500/year — but on three times the capital. The return on capital deployed is better in apartments.
The Hidden Third Option — Blocks of Units
Blocks of units (2-6 on one title) combine house-like land content with apartment-like yields. A block of 4 units in Preston at $2.2M delivering 6.2% gross yield generates $136,400/year in rent, has full land ownership, and potential to strata-title for significant uplift. This is the most underrated property type in Melbourne’s inner-north. Access off-market blocks of units through the Collings portal: collings.com.au/portal
Who Should Buy What
- Houses: long-term growth investors, families, land bankers, subdivision players
- Townhouses: balanced investors wanting land content and better yield than houses
- Apartments: yield investors, SMSF buyers, cash flow positive seekers, first home buyers
- Blocks of units: serious investors wanting yield AND land — the best risk-adjusted play
Whether you’re buying your first investment property, building a portfolio, or exploring SMSF property investment, the Collings Property Platform gives you access to off-market opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today and start building your property future. collings.com.au/portal
Find your next property with Collings
Track suburbs, get matched to on-market and off-market listings, and manage your whole property search in one place. Access the Collings property portal.
