New Mozo research revealed that Australians’ preference for houses over units could result in an additional $274,405 in interest over the life of a home loan, as house prices continue to soar.
According to CoreLogic’s Home Value Index (HVI), the median price for a house in Australia is $997,352, which is 32% higher than the median price for units at $679,849. This price difference means larger deposits, bigger monthly repayments, and significantly more interest over time.
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Rachel Wastell (pictured above), a personal finance expert at Mozo, suggested that Australians may need to reconsider their traditional housing preferences.
“The great Australian dream of owning a house may now need to shift to owning a unit if buyers want to borrow less and save more,” Wastell said.
A 20% deposit for a house is $41,470 more than for a unit, and the monthly repayments on a house could be $1,761 higher. 
Over 25 years, house buyers could end up paying $274,405 more in interest compared to unit buyers, Mozo reported.
While houses come with a higher cost, units offer a more affordable alternative.
“Units are not only more affordable upfront, but they also offer ongoing savings,” Wastell said.
Buyers who opt for units could see lower monthly repayments and a less stressful path to homeownership.
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