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Multi-Doors, = Multiple Incomes

Multi-income properties seem like an investor’s dream, but Slade Hocking weighs up the pros and cons.

By: Slade Hocking

1 March 2019

What’s all the fuss about blocks and multi-door properties? As investments, do they really stack up?

The childhood dream of owning a big building and going door to door collecting the rent money is a reality for several astute investors in New Zealand. For decades investors have had a love affair with blocks of flats and multi-door investments. There are a plethora of benefits, some obvious and some not so apparent, but what are the risks?

More Doors = More Income

In the case of single dwelling investments, when your property is empty there is no income being generated, thus leaving you out of pocket. When dealing with blocks of units, you have multiple doors providing multiple incomes. A vacancy represents a golden opportunity to renovate whilst still receiving income from the subsequent units. Multi-door dwellings do come with a price tag so if occupancy drops below 60% you may begin to feel the pinch. Be sure not to let the multiple forms of income and higher than average yields cloud your judgment. Location is key. Look at where your potential tenants are coming from and why your multi-door dwelling would be popular amongst them.

‘Multi-door dwellings do come with a price tag so if occupancy drops below 60% you may begin to feel the pinch’

Renovating Vacant Units

While the other units are still generating income, you can get to work with renovations and upgrades on your vacant units to increase the rental return and overall value. It’s common for vendors to renovate units one by one as the tenancy agreements come to an end. In this case, the income is still generated consistently while the net yield is continually increased. Yields can be dramatically increased through renovating – turning average yielding blocks into impressive investments.

Increasing Value

Unlike single dwellings, blocks of flats can be divided into separate titles. Costs depend on the current situation of the block and a number of factors including separate power meters, separate water meters, fire rated walls, council contributions, the list goes on.

Regardless, the benefits generally far outweigh the costs. Dividing your block of flats into separate titles will not just increase the value of your investment, but will provide you with options when it comes to selling.


Often blocks of flats are positioned in high-density living areas on large parcels of land. This enables the purchaser to consider the future of redevelopment.

A derelict block of flats can still provide considerable cash flow for developers while they are working through planning and consent stages. The redevelopment aspect also opens the door to developers looking for appropriate parcels of land, therefore further increasing the pool of future buyers and value.

Whether it’s a duplex or a multistorey block, multi-door properties are a lucrative investment. The savvy investor has a plethora of options to increase rent and value while ensuring that income is still generated. However, try to avoid your judgement being impaired by higher than usual yields or deferred maintenance; either scenario needs further investigations.

Do your due diligence and reap the rewards of multi-door ownership.

Property Ventures is a licensed Real Estate Agency that specialises in Investment property throughout New Zealand. They also have the NZ Property podcast/YouTube series where Mark interviews the property experts from around the country helping hundreds of thousands of investors. He can be contacted at [email protected] or 0800 NZPROPERTY (697767) Or watch the Podcast/YouTube video at www.propertyventures.co.nz/podcasts


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