This is the classic argument in Victorian investment circles—and investors on my list debate it for every deal. The answer? It depends on your goals, loan strategy, and risk appetite.

The Block-of-Apartments Playbook

• Yield vs. growth: Blocks almost always outperform for pure cash flow, with gross yields 1–2% higher than median houses in the same suburb.
• Control over income streams: Multiple units minimise vacancy risk. But management is more hands-on (especially in older unrestricted blocks).
• Land value and resale flexibility: Blocks on a single title offer future strata titling or development options (if zoning permits), giving extra levers for value uplift.
• Lending and purchase price hurdles: Acquiring an entire block can mean bigger deposits, commercial lending terms, and stricter serviceability analysis. It’s not for first-timers.

Why Do Investors Buy Blocks vs. Houses?

The most common drivers I see:

• They already own standalone homes, want stronger return per dollar invested.
• They want scale (easier to manage 1 block with 12 dwellings than 12 scattered houses).
• They’re building long-term portfolios for yield, not short-term speculative gain.

Recent Example

One of my 2026 buyers swapped their three-asset regional house portfolio (average yield 4.2%) for a block of 7 apartments in Footscray at 6.6% gross. Net rental income rose, and they secured future potential to strata title or redevelop.

Is a block, or a group of houses, better for you? Contact Simon Abbott at Collings to talk strategy, see real figures, and match your scenario with live Victoria deals.