Units vs Houses:
Are You Asking
the Right Question?

When ADF members first start thinking about property investment, units often feel like the logical entry point. They're typically cheaper, positioned near major employment hubs, and carry a reputation as a lower-risk way to get into the market.

On the surface, that reasoning holds up. But here's the issue: at Axon, we've worked with hundreds of Defence families across the country, and the asset you enter the market with has a direct financial bearing on where you end up. The question is never just "can I afford this?" The question is "will this asset actually perform?"

The answer, in the vast majority of cases, points firmly in one direction... and it's not units.

The Problem With Buying on Price Alone

Affordability is one of the primary drivers behind the decision to purchase a unit. When buyers look at their borrowing capacity and compare options, a unit often appears to be the only viable pathway into the market at their price point.

The challenge with this mindset is that it places nearly all the weight on the entry point and almost none on the long-term outcome. Two properties purchased at a similar price can deliver dramatically different results depending on the fundamentals underneath them.

Where Property Growth Actually Comes From

To understand why Axon focuses exclusively on land and house packages, you need to understand one fundamental principle of Australian property: it is the land that grows in value, not the building.

Buildings age, depreciate, and eventually need to be replaced. Land, on the other hand, is finite. As population grows and demand increases, that scarcity drives value upward and it compounds over time.

This is the core structural difference between a house and a unit:

When you purchase a brand new house and land package in a well-researched growth corridor, you're securing the asset class with the strongest structural drivers behind it. You own the land outright, you benefit from scarcity as the area develops, and your new build comes with a full depreciation schedule that reduces your taxable income from day one.

Supply Is the Factor Most People Overlook

One of the key reasons units can underperform over time is the ease with which more supply can be introduced to the market. When demand rises in a particular suburb or city, developers can respond quickly by constructing new apartment towers. That added supply places downward pressure on both rents and capital values.

Detached housing in well-chosen locations doesn't have this problem. The land is already allocated. There is no apartment tower going up next door to dilute the value of what you own.

This is why Axon's market selection process goes well beyond looking at a suburb's recent price history. We analyse population growth, infrastructure investment, employment concentration, and — critically — what is happening to the supply pipeline. Strong demand with constrained supply is the combination that underpins long-term performance.

The Hidden Cost of Strata

Strata fees are one of those ongoing costs that are easy to dismiss at the point of purchase. They look manageable, they're predictable, and they seem like a fair trade-off for a lower entry price.

The reality is more nuanced. Strata fees are recurring, they increase over time, and they sit outside your control. In some cases, building owners face special levies which are significant one-off charges for large-scale repairs or building upgrades, that can introduce real financial pressure at the worst possible time.

With a brand new house and land package, there are no strata fees. The ongoing costs are yours to manage directly, and any improvements or maintenance decisions are entirely within your control. That simplicity has real financial value over the life of the investment.

What the Right Question Actually Looks Like

Rather than asking "can I afford a house?", the more powerful question is: "What represents the strongest opportunity at my price point, and am I looking in the right locations?"

This is a question Axon helps clients answer every day. By looking beyond the most obvious metro markets and using a structured framework to assess each location, buyers can often secure a brand-new house and land package for a similar price to an inner-city unit. The key difference is that the house and land option may offer stronger long-term fundamentals.

These locations may not be inner-city suburbs. But they are selected based on the factors that actually drive growth:

• ✓
  Population growth. Areas experiencing meaningful, sustained population increases create persistent demand for housing, particularly detached dwellings.
• ✓
  Infrastructure investment. Major government and private investment in roads, rail, health, and employment precincts signals long-term confidence in a location.
• ✓
  Employment diversity. Markets supported by multiple employment sectors are more resilient and attract a broader pool of renters and buyers.
• ✓
  Supply constraints. Limited land availability and controlled development pipelines prevent the kind of oversupply that can stall capital growth.
• !
  Don't rely on proximity to the CBD alone. Distance from a capital city centre is not a reliable proxy for future performance... fundamentals are.

How This Applies to ADF Members Specifically

For serving ADF members, the case for house and land packages is even stronger, because the unique benefits available to Defence families are structured around property ownership, not unit living.

The Bottom Line

The choice between a unit and a house is not simply about what you can afford today. It's about understanding which asset class is structurally positioned to deliver the growth you need and making sure every decision you take moves you closer to that goal.

At Axon, we have never recommended a unit to a client. Not because units are always the wrong answer everywhere in the world, but because for ADF members building serious long-term wealth, a well-chosen brand new house and land package in a fundamentals-driven market is a consistently stronger platform to build from.