Just wondered if there are any Kiwis out there(or New Zealand investors) who could advise some of the best places to buy in NZ, for intention of investing. I would go the route of renovation and resale /possibly subdivide in New Zealand? Preferably coastal(or Bay) areas or ski resort towns, or maybe towns close to coal and gold mines? Also, are there any towns where land is scarce, but in demand(i.e. like most capital cities and large regional towns in OZ) I am just starting to research on NZ so a little direction would help me out. I have been to NZ and saw some absolutely stunning scenery, but not sure what the market is like. Thanks in advance if any knowledgeable people out there can help.
HELLO – I would suggest that you look at student towns like Dunedin, where the population is 120,000, of which 20,000 are uni students. Buy something that will allow to add more bedrooms quite cheaply, and get a good person to manage it for you. You can quite reasonably expect $150 per room per week. Ski town like Wanaka and Queenstown have been quite badly effected by recent global events – they might be ok over time, so it depends what your motives are. As I'm from the South Island I can't really comment with any degree of authority on the North. Cheers.
Hi there,
We are Kiwi Investors, with nationwide portfolios. Be careful when buying off some property finders, there are a few around NZ sourcing low priced (under $100k) property in tin pot little towns with very low populations and only one main employer. Some of these such deals appear to have very good numbers, yield etc. However you have to have good occupancy to achieve these figures, and in my experience you just wont be able to do this in some of the very small towns where these people are offering deals. Do your homework, or stick to the larger towns and Cities.
Also as you may have already seen in the news, rents across NZ have taken a hit due to an oversupply of properties currently for let. This has mainly been caused by the many home owners that have been unable to sell their homes, and have had to move away regardless and have been forced to offer their properies for rent.It has been common place for some medium to higher end properties to have dropped back by as much as $50 per week, thats $2,600 per year! And worse still If you are an investor that owned four such properties, that would be a reduction of annual rental income of over $10,000 per year, on properties that were already fairly negitive for cash flow to start with.
There are certain things we can do as investors to limit or completely avoid being effected by situations like this.
I have written a blog where I discuss how I have structured my portfolio to protect me from these rental decreases that many other property owners and investors are currently experiencing, and how you can too.
Click HERE to read the BlogNZ does however offer some excellent investing, with good yields and cash flow – Still some areas and types of properties also offer good growth potential.
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