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.
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.
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.
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.
Click here to download the New Zealand Property Investor Handbook by Momentum Realty.