Here are the pros and cons of investing in a townhouse:

Here’s an example of the kind of townhouse we might recommend. This one is based in Glen Innes, Auckland. 

This development included 18 three-bedroom homes with garages, priced at $849,000. The developer was Sandford Property Group.

Standalone Houses

Target purchase price: $669,000 – $899,000.
Locations: Canterbury
Target Yield: 4.25% - 4.5%.
Target Capital Growth: 5%

We also recommend standalone properties. These tend to be in Canterbury. That’s because Canterbury house prices are more affordable, so buying a standalone house isn’t as expensive as elsewhere in the country.

Our top places to invest in standalone houses are Kaiapoi, Belfast, Rolleston and Halswell in today’s market.

These houses usually have 3-4 bedrooms. That means they have enough space for a family to live in.

Standalone homes are also a growth property. That means they tend to increase in value faster than a property like an apartment.

But the trade-off is that they are likely to have a lower rental yield.

We target a rental yield between 4.25% - 4.5%. And project that standalone houses in Canterbury will increase by 5% per year.

Here are the prices of properties you can typically expect to see when you work with Opes Partners. 

Again, the price is always balanced against the rental income a property investor can expect to get:

But not everyone should buy a standalone house as an investment property. Here are the pros and cons:

Here’s an example of a recent 4-bedroom standalone property that we recommended to an investor. It is based in Rolleston, and the developer is Oakridge Homes.

Dual-Key Townhouses and Apartments

Target purchase price: $725,000 - $999,000
Locations: Auckland, Queenstown and Wellington
Target Yield: 6%+
Target Capital Growth: 3.5% - 4.5%

If you work with Opes, we might also recommend a dual-key townhouse. This will usually be in Auckland, Queenstown or Wellington. 

The purchase prices are often between $725,000 - $999,000. 

Dual keys are yield properties. They often have two units within the same property. This means that you can have 2 tenants within the same legal title. 

That’s why they tend to generate stronger rent, but usually grow in value more slowly.

We target a 6% yield or higher for these properties. 

And we project that the property will go up by 4.5% per year (on average) if purchasing in Auckland. This drops to 3.5% outside Auckland.

Here’s an example of the kind of dual-key property we might recommend. This development was in Queenstown. They were priced at around $729,000 and were expected to rent for $900-$960 a week. 

Is Opes the right fit for me?

You might notice that all 3 property types we recommend are usually New Builds. That is because Opes focuses on build-and-hold investors, rather than active renovators.

Property investors can either buy a New Build or an existing property. 

And while we here at Opes focus on New Builds, that doesn’t mean buying a new one is right for you. 

Here are the main differences between New Builds and existing properties:

Because we focus on New Builds, we tend to be a better fit for passive investors. These investors want to grow their wealth, but aren’t interested in renovating.

Therefore, if you want to renovate, add value, and take a more hands-on approach, another strategy may suit you better.