COMPARE BEFORE YOU COMMIT
Compare investment property types in Australia
House and land, co-living, dual key, apartments, commercial property or a warehouse? Use this guide to understand the appeal of each option and the questions to investigate before buying.
There is no universal best property type. Start with your budget, income needs, time horizon and ability to manage uncertainty.
A quick comparison
This is a guide to questions and potential benefits, not a ranking of returns. Outcomes depend on the individual property, price, finance, approvals and management.
| Property type | Potential appeal | Key question |
|---|---|---|
| House and land | New home and land in a chosen estate | What is the complete cost to reach a rentable home? |
| Co-living | Accommodation designed around shared living | What use is approved, and who runs it? |
| Dual key / dual occupancy | Potential for more than one rental area | Can each area lawfully be rented as proposed? |
| Apartments | Access to a particular building and location | What do the building records and levies reveal? |
| Commercial premises | Exposure to business tenant demand | What income and obligations does the actual lease create? |
| Warehouses / industrial | Premises serving storage or business operations | How usable is the building for the next tenant? |
House and land investment
A house-and-land opportunity combines a land purchase with a proposed home. Check whether you are buying a completed dwelling, signing separate land and construction contracts, or considering another contract structure.
Potential benefit: the opportunity to choose a new-home layout and inclusions that suit a defined tenant brief. Treat this as a design choice to investigate, not evidence of higher returns.
Before proceeding, ask:
- Is the land registered, and when can construction start?
- Do the quoted inclusions cover site works, landscaping, fencing, cooling and items needed for occupancy?
- Which costs can change, and what happens if completion is delayed?
- What independent inspection and handover checks will be completed?
- What comparable completed homes support the proposed price and rent?
Explore house and land listings · Ask about house and land
Co-living investment
Co-living is used in marketing for different shared-accommodation models. Establish the exact building use, occupancy arrangement and management model before comparing an advertised income figure with a conventional home.
Potential benefit: accommodation tailored to people who value private space with shared facilities. The investment case needs evidence of local demand for the specific room type and price.
Important distinction: NSW has a specific planning category for co-living housing, with at least six private rooms and shared facilities. A smaller home advertised as co-living should not automatically be assumed to fall into that category. Other jurisdictions and approvals must be checked separately. See NSW Planning’s explanation.
- What approvals and occupancy limits apply?
- Who pays utilities, furnishing, cleaning and replacement costs?
- Who manages room vacancies, resident disputes and common areas?
- Does the rental projection assume every room is occupied all year?
- Will the lender and insurer accept the intended use?
Discuss a co-living requirement
Dual key, dual occupancy and dual living
These labels should be checked against the title, approved plans and occupancy permissions. Do not assume a “dual key” description means two separately saleable properties or that two rental agreements are permitted.
Potential benefit: more than one rentable area may offer income flexibility where the arrangement is lawful and there is demand. Test the numbers with one area vacant as well as both occupied.
- What exactly is being purchased: one title, multiple titles or a proposed subdivision?
- Are entrances, services, parking and private outdoor areas suitable for the proposed occupancy?
- Which approvals confirm the intended rental arrangement?
- What do independent rental appraisals say about each area?
- Who would buy the property on resale, and how does the lender value it?
Explore dual occupancy listings · Discuss dual-income property options
Apartment investment
Potential benefit: an apartment can provide access to a location and building features that suit a particular tenant group. Compare the actual purchase price and ongoing costs with alternatives in the same area.
For a strata apartment, the building’s shared responsibilities matter alongside the unit itself. NSW Government guidance recommends checking by-laws, obtaining strata and building reports, and considering levies and shared ownership. See buying a strata property; obtain guidance for the property’s own state or territory.
- What do meeting minutes, financial records and maintenance plans show?
- Are defects, major works or special levies identified?
- What restrictions affect letting, alterations, pets or parking?
- How many similar units are competing for tenants or buyers?
Explore apartment listings · Discuss an apartment requirement
Commercial property investment
Commercial premises include spaces such as offices and shops. A warehouse is another commercial investment category, with its own operational checks below.
Potential benefit: a way to explore demand from business occupiers. Evaluate the property together with the tenant, lease and realistic reletting options.
- How much lease term remains, and what renewal or break rights apply?
- What rent reviews, incentives and unpaid amounts affect the income?
- Which expenses are recoverable from the tenant under the lease?
- Who is responsible for repairs, fit-out and end-of-lease reinstatement?
- What cash reserve would be needed during a prolonged vacancy?
- What finance and GST treatment apply to this transaction? Ask the relevant advisers.
Request the complete lease and supporting documents for independent legal review. A brochure’s advertised yield is not a substitute for checking the contract.
Send a commercial property brief
Warehouse and industrial property investment
Potential benefit: exposure to demand for space used by storage, distribution or other business operations. Investigate the specific use the site can accommodate and the pool of alternative occupiers.
- Do zoning and approvals allow the intended tenant’s activity?
- Are truck access, loading areas, clearance, power and floor capacity suitable?
- What building, fire-safety and environmental investigations are needed?
- Is the unit strata-titled, and what common-property obligations apply?
- What work would be needed if the current tenant left?
Use one comparison brief for every option
Record the purchase price, acquisition costs, evidence for rent, vacancy assumptions, ownership expenses, financing, required works and likely exit options. List unknowns beside the numbers so a precise-looking projection does not hide missing information.
Frequently asked questions
Which type gives the highest return?
A category alone cannot answer this. Compare individual opportunities using consistent assumptions and distinguish gross rent, net operating income, cash flow after finance and changes in value.
Can I enquire before choosing a property?
Yes. Send your goals, budget range, locations and timeframe. Explain what you are unsure about so the first conversation can focus on those questions.
Are commercial and warehouse properties currently available?
This guide explains categories; it does not confirm live stock. Send a brief and ask our team to confirm whether a relevant opportunity or service is available.
Turn your research into a clear property brief
Tell DHPI your budget range, preferred state or suburb, main goal, property types of interest and purchase timing. You can also say “not sure yet”. Our team can discuss your requirements and relevant availability.
General educational information, reviewed 16 September 2026. Potential benefits are not guaranteed outcomes. Obtain independent legal, tax, finance and property advice relevant to your circumstances and location.