"South Auckland I have sold out of everything I had south of Penrose including Otahuhu, Otara, Manukau, Manurewa, and Weymouth.
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what's an acceptable yield in Auckland ?
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I think South Auckland is fine to be honest - other places outside of Auckland are far worse than South Auckland. I own a few and I don't mind dealing with the types of tenants that apply and in fact am happy when I get a WINZ applicant given that WINZ pays me direct rather than to the tenant then to me (those are the disastrous tenancies in my opinion).www.PropertyMinder.co.nz
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Originally posted by Propertytrader View Postthanks Damap, i wonder why a mentor recommended me to buy in south auckland, but common sense hold me back.
I reckon south auckland is good for a quick trade, but not for long term thanks
Damap - you mention Papakura as an OK area - are you sure? Papakura has so many rough areas that I would classify as bad if not worse than Clendon/Weymouth!www.PropertyMinder.co.nz
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As I said this was my experience not a rule. Papakura is great. I have a lot of doors in there still. You just have to know where the good school zone is that's all.
Many gurus tell you South Auckland because it's cheap so that makes getting a loan easier and means the guru can say his student has taken action. And yields are higher so on paper it looks good.
But it is dangerous. Even flipping I know a current PT student who is hamstrung with several crap "flip" houses he can't sell. He is likely to end up with a bunch of cr*p tenants who will destroy his retail renovations.......
South Auckland is hard work in my opinion.
But my point is good cash flow even if it is genuine won't get you as far as quality will.
I started in south Auckland and most Aucklanders probably do. But not many stay there. So if you are able to start with better quality then do it.
If I was starting out again I would buy in home and incomes in Papakura for growth and cash flow, keep them till I die.
Then I would buy as many homes in Pakuranga, Howick, Botany, Meadowbank or Ellerslie as I could until I was ready to retire.
I have ended up sort of achieving this but did it the super hard way. I am several million down on what I would have done if I had skipped the "buy South Auckland sh*t-boxes" part of the strategy :-)Last edited by Damap; 11-12-2014, 09:00 AM.
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Originally posted by Damap View PostIF I was starting out again I would buy in home and incomes in Papakura for growth and cash flow, keep them till I die.
Which schools in Papakura do you consider as good?
Also I wonder if home&income investments in Papakura are attractive to families, renting long-term? Are they OK with half sections and somewhat limited privacy that home&incomes provide? Papakura is quite far away from the city, I thought people come here looking for enough grass around the house, etc...
Also about the capital growth: I compared my own house in Bucklands beach vs my investment in Otara, % growth is actually higher in Otara (something like 40% in BB vs 45% in Otara between 2011 and 2014 CV). Similar numbers around 45% for other South Auckland areas like Mangere, etc. Which numbers did you mean as marginal capital growth in South Auckland?Last edited by ivanp; 11-12-2014, 09:06 AM.
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Rosehill is the better college.
Proper side by side home and incomes are fine yes.
People live there to be close to their jobs and because it is semi rural. I loved living there even when my business was in Albany!
Having lived in Pakuranga and Bucks most of my life you must be incredibly unlucky to have not gotten more growth out of Bucks than Otara. Oh I see you are using 2011 to 2014 only. This is completely meaningless data because of the GFC. You need to look at ANY 10 year period.
AND as I keep saying this is just my experience :-)
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I have several properties in South Auckland, and am intending to buy one or two more.
The tenants tend to be high workload, but thats generally OK with me. I came from a bit of a rough background myself so I can relate to them.
I look at yield rather than capital gain, that's what I am about.
In a previous life I too was keen on WINZ tenants, but I have now changed my mind and avoid them.
The problem withWINZ tenants is that they sit around all day bored and with nothing to do.
thus they tend to get involved in arguments, booze, parties, and other such house-bashing activities.
Admittedly, if I had lots of time and no money then yes I'd probebaly become 'undesirable' as well.
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When discussing yield, most people are speaking Gross, on a 52 week basis. Except for apartments, which for some reason people talk about net yield; I suppose because the bodycorp fees are so significant.
When calculating yield for their own properties, most people will use 48 or 50 weeks, and want to calculate net yield (before interest, and often before R&M).AAT Accounting Services - Property Specialist - [email protected]
Fixed price fees and quick knowledgeable service for property investors & traders!
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