Just interested in advise on this area and it’s future prospects. Areas of Tauranga and surrounding towns.
Shawn
Shaun
this area is becoming NZ’s version of the Gold Coast, its one of the countries fastest growing areas. The beach at Mt Maunganui (part of Tauranga) is sandy (unlike most beaches in NZ) and is a tourist Mecca. they even have high rise apartments. Last time i was there (april)sitting in the sun on the beach i turned to my wife and asked why are we living in Balclutha when we should be living here. Tauranga has a great industry base and busy port. The city has it all except cash flow positive properties.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Westan
What you said about Tauranga and the Mount not having cash flow positive properties is only too true.
BUT it does have huge capital growth.
However +cashflow properties can be found over the hill in Rotorua.
Also I heard a snippet of news(tapping nose) that Affco a major employer in Wairoa is considering a $15m upgrade of its freezing works which will ultimately mean 100 more jobs for Wairoa.
What with the anticipated building of a jointing and door making factory and now this upgrade spells nothing but good news for Wairoa.
Regards
Hi guys,
Tauranga is a great place. Still one of the fastest growing areas in NZ. I moved here to be closer to all the property action and while I’ve done a couple of deals here Muppet is right, there are still many +ve cash flow properties in Rotorua.
They are presently upgrading the back road from Tauranga to Rotorua with the intention of it becoming a State Highway. The trip between the 2 towns will probably be between 30 – 40 minutes.
Another town close to Tauranga and definitely worth a look is Te Puke.
Cheers
JeffHi all
Jeff when i was last in Te Puke i found prices very high and could find deals showing 10%, do you feel they exist ?
Muppet that would be more great news if it is true for Wairoa,
(for Aussie Wairoa is not on the Bay of Plenty)
regards westanI live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Westan,
Sorry about Te Puke I should have elaborated.The place has good growth potential due to its proximity to Tauranga and the coast.
There is more demand for rentals there now as people commute so no doubt in the future there will be pressure on rents.
As far as 10% deals go and do they exist – there is a bargain in every market.
Cheers
JeffWell, Te Puke and Rotorua??
Sounds better than Huntly.
Jeff, Are many of the titles in the Bay under a Maori lease and what are the likely consequences of Maori lease land? I’d imagine a lot of investors would be afraid of it.
Cheers
Shawn
man, those Aussies must be laughing so hard, it’s pronounce Teh POOKIE by the way not te PUKE…hahahhaa
joy to the world
Maori Lease-hold land is no different to any lease-hold land, i.e. owned by the church or whatever.
Ages ago I was looking at a lease-hold deal in Greymouth South Island which was some crazy numbers like freshly painted inside and out, 4 bedroom, right next to KFC/shops/town down drive along the road from the local Polytech, 35k, valuation 55k, 30 percent return after the cost of the lease per annum. it was in year 7 of a 15 year lease. So i weighed it up and thought 30 percent and you don’t own the land or get CGs if any, and if you have a vacancy it’s really bad cause your holding costs are high (even though the location meant that was unlikely) versus 20 percent CF returns which you could get on freehold land at that time. So I didn’t go for it, but I did discuss it with my lawyer who said he would want to have a look at the lease as part of the due diligence.
I think leasehold can be OK but why do it if you can own the land too. After all, they are not making any more land…
cheers-
Minijoy to the world
Yeah, there’s still a lot of lease hold land in Bay of Plenty. I’ve had IP’s on 999 year Maori lease land which were never a problem. Then there are the 21 year perpetual leases which demand reasonable ground rent. The last one I viewed had 7 year increases to market – it ended up moving to 8% of land value and that’s too difficult to make work, even with commercial.
Besides, there is still a lot of clean freehold land available to take advantage of. The problem with leasehold land is you must be more cautious when doing due diligence.
As they say, “buy land, they’re not making anymore of it”
Cheers
Jeff
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