City apartments in New Zealand offer expatriates the best form of investment. Philip Toogood, project marketing manager in New Zealand of Bayleys Real Estate, said between 15 and 20 per cent of New Zealand residential apartment sales in the territory were to expatriates. He said many buyers planned to make money by leasing them before returning home. Prices for inner city apartments, found mainly in Auckland, range from NZ$225,000 (about HK$1.17 million) to $375,000. Rental yields for unfurnished apartments range between seven and eight per cent. Furnished apartments provide higher rentals. A spinoff from this market is the serviced apartment, with rooms owned by investors and operated by a management company. Mr Toogood said most offered guaranteed rental returns for the first two years of between eight and 9.5 per cent, compared with five to eight per cent for a suburban house. 'With homes you also have the responsibility of maintaining grounds and ongoing house maintenance' he said. Management fees for apartments range from about seven to 12 per cent of the rental.