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Dual key units: More potential income, more flexibility

If you’ve ever looked into buying an apartment overseas you may have come across the term Dual Key unit. They’re becoming more common here in New Zealand, and are a type of property that we include in the majority of our Safari Group developments.

For those of you who haven’t heard of them, here’s a little bit about what these apartments are, and why you may want to consider investing in one.

So what exactly is a Dual Key unit?

Dual key units are a relatively new concept for New Zealanders. 

With the Auckland Council’s unitary plan allowing property developers to build onwards and upwards, you’ll probably see more dual key apartments pop up, like the status quo overseas, as we Kiwis get more accustomed to living more compactly.

A dual key unit is essentially one apartment, on one title, that is split into two dwellings. In a Safari Group build the units have a shared entrance which then flows into two separately lockable apartments. 

Each apartment has exactly what you would expect of a separate dwelling – its own bedroom (or bedrooms), living area, kitchen and bathroom.

Image above: Example layout of a dual key unit in The Residences at Central Park Ellerslie.

What are the benefits of investing in a dual key unit?

Dual key units are ultimately built with investors in mind. You’ve probably figured out that the biggest benefit of owning one of these is the potential to earn two rental incomes.

In The Deal, New Zealand property developers’ answer to the tv show ‘Shark Tank’, our Director and Senior Development Manager Simon Taylor talks about why this is. 

Referring to the units in our Ellerslie development, he explains, “the benefit is that it has the same area as a two bedroom unit, be it around 75 square metres, however the return on that unit, when you are renting it out as a studio and a one bedroom, is significantly higher, so the yields are a lot greater than a simple two bedroom unit use of that space.”

Another benefit Simon talks about is the “flexibility” of these units. As we mentioned, if income is your priority you can rent out both. The benefit of flexibility is that it allows for more than one option. You can live in one apartment and rent out the other, or for a growing family rent out one side and eventually take over both apartments when the space is required. 

Dual key units are also a great option for families who want to be close to an older family member, or to allow a person to have their carer close to home:

“We’ve seen an elderly lady who purchased a dual key. She lived on one side, and rented out the studio side, with the intention of as she aged having a nurse stay in there and look after her.”

Dual key units at Safari Group

After reading the above, does a dual key unit sound like a smart option for your situation?

If you said yes, then we have dual key units available in our Newmarket and Ellerslie developments that we can talk to you about. These are great locations close to public transport, shopping, food and dining. 

Give us a call on 0800 760 760 or email us at sales@safarigroup.co.nz if you’d like to learn more.

Interested in the most up to date NZ property market insights? Check out our latest article by economic expert Tony Alexander here.

Images above: Dual key unit in The Residences, Newmarket.