Auckland Property Investment – High Density Living

Many property investors have shied away from apartments as an option for property investment nz, partly the reason for this may be historic perceptions. Banks and financial institutions have treated apartments as a higher risk and would not lend as much to investors, this is called the LVR (loan to value ratio).

But times are a changing and many banks have eased their LVR and will now offer 80% finance on apartments, so now is a great time to take another look at this higher density housing option.

The term “High Density Living” describes a type of housing where more than one new home is constructed and each home does not have its own footprint on the land, rather the homes occupy airspace.

High density development includes residential flat buildings and apartment buildings that are multi storey’s high, but may include alternative housing forms which deliver higher dwelling yields. High density housing developments also include high-rise developments.

They normally share parking spaces, storage areas, driveways, stairways, lifts and sometimes green spaces. A shop-top apartment is a high density home, an apartment in a low-rise block of flats is a high density home as well.

Different city councils may have a different take on the definition, but essentially high density living is where multiple dwellings share the same footprint and airspace.

Grant Hoey, a mentor for PropertyTutors.com, believes that investing in apartments holds many similar challenges to that of residential housing. Getting to know your market and the people that operate in it are crucial and doing your research is an essential part of being a good property investor.

Today Grant’s portfolio is worth over $7 million – he has gone from investing in small properties on the North Shore, into the Auckland central city market – developing strategies and tactics that produced remarkable results.


For further reading on Property Investment NZ, click on the articles below:

Setting Goals for Financial Independence – click here

Tips for Becoming a Property Expert – click here

Buying Rules for Property Investment – click here

5 Tips to Add Value through Renovation – click here


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