Dual-key apartments have been a popular option in many Southeast Asian countries for several years, but the concept is only now starting to take off in New Zealand.
Often called twin apartments, dual-key apartments provide a stand-alone studio apartment and, usually, an adjoining one- or two-bedroom apartment. There are separate entries for each apartment and no shared facilities, but they are sold under a single title.
Conrad Properties in Auckland is incorporating dual-key apartments into some projects, including the Park Residence Apartments in Albert Street due for completion next year.
These bank-friendly apartments could be seriously cash positive, even with an investor borrowing the entire amount and after paying outgoings such as body corp, rates and interest only mortgage payments (bank lending criteria will depend on individual investor circumstance).
These apartments do not come available often and are always the first in a complex to sell. They give a very good yield for investors, especially with interest rates reducing further. We find they are mainly sold to local people (rather than foreign investors).