Difference between Unit & House

[Gav23]

Hi,

I was just wondering what actually defines the difference between a "unit" and a "house". I know the median prices for each are calculated separately, so surely there is a guideline that must be followed?

There are 2 town houses I am particularly interested in. One is considered a "unit". However it is the first house and on the road, and is very separate from the other 3 town houses ("units") that are behind it and off the road.

The other is on the same street, in a group of 4 town houses as well. It has a small backyard and double garage like the place I mentioned above. However, all 4 houses are basically joined together, so personally I would consider this to be a unit, but its listed as a "house".

For this suburb, house prices are down slightly (-2% for for last 6 months of 2008), yet units have soared 12% for the same period. The difference in median price for a house and a unit in this suburb is just over $40k. Yet both properties are listed at a similar price.

Also, does being listed as a "house" or "unit" affect the long term value, if both properties are pretty much the same?

[kincella]

a house is on its own freehold block...no strata...sounds like re agents bending the story...I could be wrong...also was it once a big block and the 3 units built behind it...but all subject to strata rules....or is the house not subject to the strata >>>
I built another house..behind one...but both have own street frontage....it was supposed to be on its own ,,,but the builder did not put in a separate sewage system,,,so they are joined...and both are strata...
when I can be bothered to have the error corrected...then they will not be strata units and will be freehold...
in the meantime the agents call both as units....they each have all separate land, fenced, garages, backyards...just like any other house

noticed a unit in Sth Yarra last week listed as in Toorak.....it was 600 yards away from the end of Toorak...kidding me the agent did not know the difference...they get a higher price in toorak...than for the same thing in sth yarra
I may be totally wrong...and others may offer a more correct answer
even better idea....call the agent and ask him...is it a unit or a house...40,000 difference
cheers

[Beej]

Yep - I think what Kincella says is essentially correct. From the ABS/stats view point the difference is the type of title - anything with a Torrens/Freehold title is considered a house, and anything on a strata title a unit/townhouse. In Sydney for example, most older semi-detached houses and terraces count as houses, as they are on Torrens title. Newer townhouses and obviously all "flats" are units statistically speaking.

In terms of values the trends can be quite different as you have noticed. I believe the main reason for this is a greater proportion of units/strata titles property is owned by investors and rented than houses - which are owned in much greater proportions by owner-occupiers. More investors = prices more likely to move inline with rental trends. Also lower median price of units typically means FHBs can also have more influence as well.

Cheers,

Beej

[Gav23]

Thanks to both for your replies. Next question:

What is a Torrens/Freehold title, and what is a Strata title?

[Gav23]

OK, I found the different types of titles myself:
http://www.echoice.com.au/mortgage/home_loans?pn=/home_buyer_centre/find_right_home/types_title.html

Going by these definitions, both properties should definitely be "strata" titles. Are there laws to enforce this? I do not see how one of the properties is listed as a "house"

[bluelabel]

Often wondered that myself Gav, good question. Thanks for the answers guys. I always went with the lamens terms in defining them and never thought to research the 'legal' definition. To me a house is on a block by its self, and if there is more than one 'house' on a block it is a unit, but i stand corrected. you can have a house up the front of a block with a unit out the back.

If you dont mind Gav i will extend this question a bit and ask then, what is the difference between a unit and a flat and where do townhouses enter the fray?

:bier:

blue

[kincella]

ok...the difference between a flat and a unit ....no difference...just depends which country you are in...same with a townhouse....
in toorak we have lots of town houses.... people live out of town, in the country...but they have a house in town..for when they come to town....
apartments are the same...
I would use a distinction in townhouse.....its like a house, but attached to another....has all the attributes of a house...garage, garden etc
most apartments, units or flats, do not have the garden, or sometimes no garage
I googled the question....other forums suggest the name only changes with the country you are in...
but again you could ask the agents
http://en.wikipedia.org/wiki/List_of_house_types