| by Kenneth Chase | 2 comments

Different Property Types Explained


When searching for property, often you’ll
come across the different property types being house, apartment and unit, townhouse, villa,
land, acreage and rural, blocks of unit and retirement living. So what do all of these different property
types mean? That’s what we’re going to go through in today’s
episode. Hey, I’m Ryan from onproperty.com.au, helping
you find positive cash flow property. In today’s episode, as I said, we’re going
to look at the different property types. The easiest way to do this is to simply go
to realestate.com.au and go ahead and search by property types. The most straightforward one is going to be
the house. So, this is generally a freestanding building
on its own block of land. I’m not going to go into all the different
types of land titles or the different developments, types and things like that, different zoning
for areas because that varies from council to council. But, if we go ahead and have a search for
houses, we can see a few detached houses here, which means the house is completely freestanding. But then, we also have some semi-detached
houses or houses that are attached to each other. Here, we have one in Erskineville in Sydney
in New South Wales that is a terrace sort of house. There is joining walls on both sides of these
houses. However, we’ll see when we go into townhouses
and villas that these differ because they don’t have common land. So they share common walls and, obviously,
you need to work with your neighbour if you’re doing anything in the common wall. But they don’t have common areas or strata
or anything like that that they need to pay for. They just have their own house, their own
block of land, etc. If you keep going through, we’ll see a lot
of detached houses. Let’s go back and look at the next one, which
is going to be apartments and units. These are very different from houses. Generally, this means a building with multiple
units within it. Generally, we can see a big unit at the start
here or we can see smaller units as well. These generally have common internal areas,
common external areas. Generally, it’s one building with lots of
different units in it. This one here in Croydon, New South Wales,
is a prime example. You’ve got the entrance and it looks like
there’s 4 units at the front there. There may even be more at the back. They would all share the front garden. With units, something to consider is strata
and body corporate fees. Everyone who owns the units, they all come
together as a committee. They form a body corporate and they make decisions
on how to spend money. There’s extra fees that go into a unit that
don’t necessarily go into a house because you’ve got to pay these quarterly strata fees
that go towards the maintaining of the common areas or if they want to do renovations to
the building or things like that. Next, let’s have a look at townhouses. Townhouses and villas are quite similar. Townhouses and villas are generally properties
that are attached to other properties. But, they tend to be in complexes as well. It’s kind of like a mixture of houses and
units. We can see a freestanding townhouse here. We can see a freestanding one here as well. But, what it means is that you’ve got a property,
whether it be fully detached or semi-detached or attached to other properties, but you are
in a common complex or a common block of land. So you share that block of land with other
people, kind of like a unit. It’s like the house version of a unit. Again, you’re going to have strata and body
corporate fees with this to manage the common areas and things like that. Often, the externals of the property are set
by the body corporate in terms of colouring and things like that. But, you do have more room. It tends to be a bigger property. The difference between a townhouse and a villa
is quite small. Townhouses tend to be 2-storey properties
whereas a villa is always going to be a 1-storey property. If we go ahead and have a look at the villas
here, we can see that they’re all one-storey. But, villas are similar to townhouses in that
they are a part of an overall complex. In which case, you need to pay those strata
and body corporate fees to maintain the common areas and things like that. A villa is basically a single-level townhouse
and a townhouse is basically a 2-storey villa. They’re very similar to each other. Land is pretty self-explanatory. If we go ahead and search on land, then we
will see that it’s just basically different blocks of land that don’t have dwellings on
them yet. We can see this is a great aerial picture
of this block of land. We can see that there is no building on this
land yet. So, this land needs a building on it. So when you’re searching for land by itself,
you can definitely use the land category. We’ll then go ahead and have a look at acreage. Acreage, I believe generally has a property
on it, but it’s going to be quite a large property. We can see that these are houses here. But, we can see that it’s a house with a huge
block of land. So, this one that we’re looking at right now
is 15.5 acres. So if you’re looking for not just a house
on a block of land, but you’re looking for a house and a significantly large portion
of land, then you’ll probably going to want to look at acreage. We can see some beautiful houses here that
are on acreages. Some people just love having that land. Personally, it’s not really my cup of tea
because it’s just so much to maintain. But, if you want acreage, then all the better
for it. They’re really beautiful. And then, rural, let’s go ahead and have a
look at that one. I haven’t done a lot of search in the rural
space. Generally, these are massive rural properties. Generally, with a business attached to it
as well. It might be that it’s got a farm attached
to it or it might have cattle or things like that. I think it’s best if we go ahead and have
a look at one. These are generally going to be quite expensive
from what I have looked at. We can see that this rural land has cropping/grazing
suitable for large scale drip/pivot/feedlot. That doesn’t make much sense to me because
I don’t know a whole lot about farming. But, we can see it’s over 2,000 acres. We can see it’s got rivers, it’s got flood-free
red loams, there’s all this sort of stuff. If you’re looking for rural stuff where you
want to have cows or you want to run a rural business, then that’s what you would look
for there. I hope that that gives you an overview of
the different property types. These are generally used just for ease of
use on realestate.com.au so you can find what you’re looking for more easily. Something that I haven’t looked at yet, actually,
is blocks of units. So, let’s go ahead and have a look at that
because I really like this, especially when it comes to positive cash flow. It’s really easy to find positive cash flow
in blocks of units. Blocks of units are – we talked about units
and flats before where you have one unit in a big building. Blocks of units are you buy the entire building. We can see one here. Rather than just buying one unit within it,
you buy the entire block. There’s no strata fees or anything like that
because you own everything and you decide where all of the money goes. That’s what blocks of units are. They do still exist. They are rarer. You find them more in regional areas and things
like that. This just means they haven’t been strata-titled. When we look at flats and units, there’s a
process called strata-titling where each person has their title on the shared land. These blocks of units generally haven’t been
strata-titled. They’re just under that one title – quite
similar to a house. But, there’s lots of dwellings in there. That is blocks of units. What was the last one on there? Retirement living. Retirement living can be a mixture of things. Generally, it is only for over 55. Depending on the area, there are ways to build
properties that are smaller than would otherwise be allowed and they market them as over 55. For some reason, they allow people over 55
to live in smaller properties. Sometimes, these properties have care attached
to them. So, you might have a nurse that goes around
to your building or you might have like a nursing home down the road that you could
move into eventually. But, there’s also a bunch of them that don’t
have any of that. It’s just separate living. It’s just a way to market these properties. Over 55 is generally, it’s harder lending
for. You’re going to need a bigger deposit. But, with retirement living, if you’re over
55 and looking for that, you can get really nice surroundings and things like that. I hope that that kind of covers the different
property types that you’re looking for. I like houses and I love blocks of units. With everything, there’s always different
lending criteria. There’s different things that you need to
look at. None of these is perfect. I love houses because there’s no strata fees. You decide what you’re going to do. You decide what you decide to spend your money
on. But, then, some people love the apartments
and units because they’re cheaper than houses and they don’t mind that they have to pay
the strata fees and work with a committee to get stuff done, same with townhouses and
villas and things like that. I hope that this explains the difference in
property types. If you’re looking for positive cash flow property,
then I would probably just start with blocks of units just so you can find some and you
can see that there’s so many positive cash flow blocks of units out there or also look
for houses in specific areas as well. Because often, with apartments and units,
the strata and the body corporate fees strip away the positive cash flow. The same with townhouses and villas, actually,
as well. So, blocks of units and houses are good to
look at when it comes to positive cash flow. Or, you can just head over to my website at
onproperty.com.au and I’ll help you find positive cash flow properties. Inside the members area at On Property, I
find and list a new positive cash property every single day. So it’s a property with a high rental rental
yield that’s very likely to be positive cash flow. Every single day, there’s a new one available
to members. I also have tools in there to help you analyze
positive cash flow. I’ve got courses as well. I show you exactly how I go about finding
positive cash flow properties on the internet. I show you exactly how to do it so you can
go out and do it like me and find as many positive cash flow properties as you want. You get complete access to all of that. Just head over to onproperty.com.au and click
the “Get Started” button to join today. That’s it for me, guys, until next time, stay
positive.

2 Comments

Mary Machaiel

Jun 6, 2018, 3:17 pm Reply

I am struggling to take my real estate licence

Diontae Daughtry

Sep 9, 2019, 4:05 am Reply

Thank you this was very helpful and informative 👍👍

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