Hi Everyone,
I have been looking at real estate in New Zealand out of curiosity and stumbled across one bedroom apartments with about 9% rental yields after body corporate fees and rates etc in Auckland as advertised by the agents.
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I would like to know some thoughts on this or any advice from anyone who has invested in property in New Zealand. It sounds too good to be true on paper!
Cheers
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This topic was modified 9 years, 6 months ago by
stama90.
Yields in Auckland apartment market are still pretty good. Much higher than standalones. There was a huge influx of apartment construction in the past decade and as a result the apartment market has become undervalued. This is changing though with apartment value in the last 12 mos rising at the same rate as standalone.
Rental rates for apartments are however above those for standalones. This is because you generally have low transport costs living in central city. Typical tenants for the smaller high yield apartments are generally international students attending central city learning insititutions and you can have vacancies over the term break and summer as a result. Also watch out for leasehold apartments. Looks good on paper but very difficult resale and unexpected land rent rises can hurt. Kiwis are wary of leasehold property.
I’m just about to buy a few of these apartments. The only cash positive opportunities in Auckland that I can find.
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This topic was modified 9 years, 6 months ago by
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