Two Illawarra real estate agents share the pros and cons of both.

The big winner for buying a unit to live in is the “low maintenance” lifestyle according to Trever Molenaar of McGrath Thirroul.

“In most cases strata organises someone to look after the common areas,” he said. “Units are usually closer to utilities, shops, cafes and transport.”

Couples or retirees who don’t want to be fixing gutters, weeding a lush garden or mowing lawns were perfect candidates to purchase a unit, because with a house on a quarter block “you’re really only buying air space”.

On that note, Mr Molenaar said a house with a backyard was “the great Australian dream”.

“Especially for families, you have a place to kick a ball around, you can have a vegie patch, a pool … and you can do what you want there.

“Whereas units are governed by a strata company and you have to abide by the rules, houses are a lot more freer.”

Craig Higbid, from One Agency in Kiama, said he sees a lot of buyers hunting for units in the southern Illawarra so they have more time to enjoy life – especially if the property is a holiday unit.

“It gives them more opportunity to spend more time on what they want to do rather than maintaining the upkeep,” Mr Higbid said.

When thinking about buying an investment property, both houses and units can be quite profitable though at different times.

Mr Higbid said in his area holiday units were popular because the owner could utilise the property themselves, while managing it as a rental also.

Units had bigger yields in rental returns, while new buildings (units or houses) had better tax benefits due to depreciation.

“There’s always demand for units in Kiama … we find people who visit the area fall in love with the location,” he said. “We never have any issues marketing properties to investors or home owners.”

Mr Higbid added that larger homes in the region were attractive to people “in transition and planning their future”. Houses offered an alternative income until the owner decided to retire.

Meantime Mr Molenaar said capital growth was much higher for houses.

“In most cases units are generally cheaper, smaller, an can get more on the same block,” he said.

“House values generally go up quicker, mainly because there’s more people looking for houses in the Illawarra.”

Houses also have more scope for improvements as there’s no strata imposed rules.

Here are three Illawarra properties currently on the market that suit different needs.

An affordable entry level home at 61 Keerong Avenue in Russell Vale gives a small family space to move around and plenty of entertaining room with large deck and back yard.

It’s listed at $650,000 to $700,000.

An off-the-plan three bedroom unit at 164 Balgownie Road in Balgownie would give an investment buyer “dollar for dollar” rental returns according to agent Trever Molenaar of McGrath.

While a quarter acre block with a single brick home at 41 Hillview Circuit in Kiama would allow it’s owner to do any alterations they like without constraints set by a strata company.