Investing 101
20 August 2023 | Momentum Realty

Property Typology

While there’s no right or wrong type of property, the property’s typology can have a hand in its profitability. Typology can also influence the purchase price of the property, making some property types more accessible than others – especially for first-time investors.

Townhouse or Terraced home

These are multi-story homes which share one or both walls with an adjacent property. They will often come with a ‘freehold’ or ‘stratum in freehold’ title. They are often cheaper than a standalone home, making them a popular investment choice.

If it’s a freehold title, the owners will belong to a residents’ association and be required to contribute an annual fee to manage common areas.

If it’s a stratum in freehold title, the owners will below to a body corporate.

Townhouses are becoming more popular in suburbs of large cities with land that used to hold just one property being transformed to hold a townhouse block or larger parcels of land being turned into communities predominantly made up of townhouses.


Apartment properties are usually multi-story buildings that have individual residential units which will hold a ‘freehold in stratum’ unit title so the owner will belong to a body corporate.

Well-located, well-appointed apartment developments are becoming more popular with investors, especially those looking to invest for rental yield.


Duplex properties usually have a ‘freehold’ or ‘fee simple’ title and the two properties in the duplex will share one common central wall. A duplex can be owned together or on two separate titles.

The homes in a duplex will generally be a direct replica or mirror image of each other with their own individual entrances and outdoor space.


A standalone property is the quintessential family home – one many Kiwis grow up in. This property doesn’t share any walls with its neighbours, and the owner has absolute property rights on both the property and land with a ‘freehold’ or ‘fee simple’ title.

Dual income

A dual-income property has two self-contained dwellings under one roof. They are often also referred to as a multi-generation home or home & income. Unlike a duplex property, a dual income only has a single title ownership – so only one set of rates that need to be paid, but you’ll be able to generate two incomes from the two separate tenancies.

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While property investment may seem simple from the outside, there’s a lot that goes into buying the right property and making sure you can hold it through the fluctuations of a property cycle. In this guide, you’ll find everything that you need to know about what makes property such a powerful investment option, and how to make sure you buy the right investment property to meet your financial goals.

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