Looking at property in Victoria, you'll meet three main types: standalone houses, townhouses, and apartments. They're all places to live, but the legal and practical differences are significant, and knowing them before you buy avoids surprises. This is part of our first home buyer guide.
Houses on their own title
A house on its own (Torrens title) lot is the simplest structure: you own the land and building outright, with no body corporate, common areas, or owners corporation fees. What you can do is governed only by the planning scheme, building regulations, and any easements or covenants on the title. Within those, you have a lot of autonomy, renovating, extending, fencing, or subdividing (if the zone allows) without consulting other owners, just the council or a building surveyor. That control is the appeal. The trade-off is cost: a higher land component, and higher ongoing council rates, insurance, and maintenance of a full building and garden.
Apartments
Apartments are almost always part of an owners corporation (body corporate or strata), established under the Owners Corporations Act 2006. You buy a "lot", typically the interior of your apartment, while the common areas (corridors, lifts, car parks, pool, lobby) are owned collectively. That structure has real implications:
- Fees. You pay levies to run the common areas, varying enormously with the building: perhaps $3,000 a year for a small block, $10,000 to $20,000+ for a high-rise with a gym, pool, and concierge. The Section 32 discloses the current fees and the corporation's financial position.
- Decisions by committee. External changes (windows, paintwork, a satellite dish) usually need owners corporation approval, so you're not fully in control the way you are with a house.
- Maintenance split. The interior is yours; the external structure and common areas are the corporation's, and disputes can arise over the boundary (pipes in walls, structural elements).
- Lending restrictions. Many lenders lend at a lower LVR, or not at all, on apartments under 50 square metres (some under 40), on studios, and on serviced apartments with hotel-style management, and some are cautious about very high-density buildings. Confirm with your broker that your lender will lend on the specific property at a reasonable LVR.
Townhouses
Townhouses sit between the two, and the ownership structure varies most. A townhouse might be on its own Torrens title lot (own the land outright, no owners corporation, common for larger ones), on a strata title (with common driveways or parking run by an owners corporation), or in a smaller body corporate sharing something like a common driveway. So when you look at one, check whether there's an owners corporation, what the fees are, what the common areas include, and what restrictions apply. The Section 32 should make the structure clear, and your conveyancer will confirm the costs and rules.
Key differences summarised
| House | Townhouse | Apartment | |
|---|---|---|---|
| Own the land? | Yes | Depends on title type | No (lot only) |
| Owners corporation? | No | Sometimes | Almost always |
| Owners corporation fees? | No | Sometimes | Yes (can be significant) |
| Renovation autonomy? | High (council rules only) | Moderate | Lower (OC approval needed for some works) |
| Lending restrictions? | Minimal | Minimal to moderate | Sometimes significant |
| Typical maintenance burden | Higher (full property) | Moderate | Lower (internal only) |
Which is right for you?
The answer depends on your priorities.
If you want maximum control, the ability to renovate freely, and no body corporate, a house on its own title offers that. The trade-off is typically a higher purchase price for the land and higher ongoing maintenance.
If you want lower maintenance, a lock-and-leave lifestyle, and are comfortable sharing decision-making with other owners, an apartment can suit that. The trade-offs are body corporate fees, some constraints on what you can do independently, and potential lending restrictions for smaller apartments.
Townhouses offer a middle ground for many buyers: more privacy and space than an apartment, lower maintenance than a full house, and (in some cases) no body corporate at all.
Before you buy any property type
For apartments and townhouses with an owners corporation:
- Check the owners corporation fees disclosed in the Section 32
- Ask for the owners corporation financials (the meeting minutes from recent AGMs and the current financial statements) to understand the health of the fund
- Check whether any major maintenance or capital works are planned (a building that needs a new roof or lift upgrade may levy owners soon)
For houses, check whether there are any easements, covenants, or zoning restrictions that could affect your plans for the property.
Your conveyancer will review the relevant documents and flag anything that needs attention. But going in with a clear understanding of what each property type involves means you can ask the right questions before you commit.
Sources
- Owners Corporations Act 2006 (Vic): the law governing owners corporations (apartments and many townhouses), including fees and records.
- Consumer Affairs Victoria: Owners corporations: the regulator's guidance on buying into an owners corporation.
- Land Use Victoria: Property and land titles information: how title (Torrens or strata) and any easements or covenants are recorded.
Sources verified 25 July 2026. Owners corporation fees and lending criteria vary by property.
General information only. This article is not legal or financial advice. Consult a licensed conveyancer, solicitor, or financial adviser before making decisions about your specific situation.
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