Unit Title vs Freehold
Unit title is for multi-unit developments (apartments, townhouses) with shared common property and a body corporate. Freehold is standalone ownership with full control. Different products for different needs.
Side-by-Side Comparison
| Attribute | Unit Title | Freehold |
|---|---|---|
| Property type | Apartments, townhouses, multi-unit | Standalone houses, bare land |
| Common property | Shared (lobbies, driveways, roof, structure) | None — you own everything |
| Body corporate | Mandatory — all owners are members | Not applicable |
| Ongoing levies | $2,000-$15,000+/year | None (beyond rates and insurance) |
| Renovation freedom | Limited by body corporate rules | Full control (within council rules) |
| Maintenance responsibility | Shared for common property | 100% owner responsibility |
| Insurance | Body corporate insures common property | Owner arranges all insurance |
Unit Title Explained
Unit title is the standard ownership structure for apartments, townhouses, and other multi-unit developments. Each owner holds title to their individual unit plus a share of common property (structure, shared areas, grounds).
The body corporate manages common property and collects levies from all owners. This provides professional management but means you have less individual control. Body corporate rules may restrict pets, renovations, noise, and short-term letting.
Freehold Explained
Freehold gives you complete ownership of land and buildings with no shared property or body corporate. You're responsible for all maintenance but have full control over your property (within council regulations and any registered interests).
Freehold is preferred by buyers who want maximum flexibility and independence. However, you also bear 100% of maintenance costs and responsibilities — there's no body corporate to manage the roof or driveway.
Do You Need Both?
This is typically a lifestyle and location choice rather than a direct comparison. If you want inner-city apartment living, you'll likely be buying unit title. If you want a standalone house with a garden, you'll likely be buying freehold. The right choice depends on your lifestyle, budget, and location preferences.
Which Should You Get First?
Decide on your lifestyle needs first: Do you want a low-maintenance apartment or a standalone house? Then investigate the specifics. For unit title, focus on body corporate health. For freehold, focus on property condition and registered interests.
Frequently Asked Questions
Are unit title properties a good investment?
Unit title properties can be excellent investments, particularly in high-demand locations with well-managed body corporates. The key risk is a poorly managed body corporate with inadequate funds, which can lead to large special levies.
Can a unit title property become freehold?
In theory, a unit title development can be terminated and the land subdivided into freehold titles, but this requires agreement from all unit owners and is extremely rare in practice.
Related Terms
Unit Title
GlossaryA form of property ownership for apartments, townhouses, and other multi-unit developments where each owner holds title to their individual unit and shares ownership of common property.
Freehold
GlossaryThe most complete form of property ownership in New Zealand, giving the owner full rights to both the land and any buildings on it.
Body Corporate
GlossaryThe legal entity made up of all unit title owners in a multi-unit development, responsible for managing common property and shared affairs.
Cross-Lease
GlossaryA form of property ownership where multiple owners share the freehold of a single piece of land and lease their individual dwellings from each other.
Cross-Lease vs Freehold
CompareFreehold gives you full ownership of land and buildings with no co-owner dependencies. Cross-lease means shared land ownership with restrictions on changes — typically 5-15% cheaper but less flexible.
Cross-Lease vs Unit Title
CompareBoth are multi-unit ownership structures, but they work very differently. Cross-lease involves shared land ownership with a flats plan, while unit title has a formal body corporate with a unit plan under the Unit Titles Act 2010. Unit title is the modern standard; cross-lease is a legacy NZ structure being gradually phased out.
Leasehold vs Freehold
CompareFreehold means you own the land outright. Leasehold means you own the buildings but lease the land from a landowner (council, church, iwi, or private entity) and pay ground rent. Leasehold is significantly cheaper upfront but carries ongoing costs and risks around lease expiry and rent reviews.
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