Hi Brendon
Good post, see below with my answers in bold / italics, don't hesitate to get in touch if you have any further questions / queries
Good post, see below with my answers in bold / italics, don't hesitate to get in touch if you have any further questions / queries
Originally posted by DontPanic
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Hi PT Forum
We are long term Auckland Investors who are currently selling one off 1 property to reduce debt and exposure to market risk.
Grahams post has got me thinking about our next step (we are in our 40,s) and I am crunching numbers on leveraging a freehold Auckland rental (would require selling 1 more Auckland property) to build a positive cash flow portfolio outside of Auckland with 20 year P&I terms. This is the type of fundamentals we started out with 14 years ago but with the Auckland market you adjust your strategy to make it work, no regrets there either.
My search of potential locations has lead me to Wellington suburbs were stagnant market seems to have provided an abundance of potential 7 or 8% deals that would work with a 20% deposit.
I need information about the market if Wellington investors can help.
When you refer to the main centre are you referring to Wellington or the CBD of that suburb?
In terms of what' the better suburb of the three, that' a hard question, if you look at rents, the rents in Lower Hutt are generally more dearer than Upper Hutt but it does depend entirely on each individual 'pocket' of those areas. There are some areas in Upper Hutt that have higher rents than certain areas of L/H and vise versa, same rule applies to Porirua
Generally more of a blue collar person however I'm just basing that on my experience.
Not sure about this, I haven't noticed an increase in vacancy rates if anything I've seen a decrease in them.
More apartments I would say
Hope that helps
I hope my questions don't sound to derogatory, I think Wellington is an awesome city but I don't know much about the suburbs and just need gather information and would be grateful for any advice or perspective anyone who knows the investor market can provide
Cheers Brendon
We are long term Auckland Investors who are currently selling one off 1 property to reduce debt and exposure to market risk.
Grahams post has got me thinking about our next step (we are in our 40,s) and I am crunching numbers on leveraging a freehold Auckland rental (would require selling 1 more Auckland property) to build a positive cash flow portfolio outside of Auckland with 20 year P&I terms. This is the type of fundamentals we started out with 14 years ago but with the Auckland market you adjust your strategy to make it work, no regrets there either.
My search of potential locations has lead me to Wellington suburbs were stagnant market seems to have provided an abundance of potential 7 or 8% deals that would work with a 20% deposit.
I need information about the market if Wellington investors can help.
- I like the idea of looking for target yield in the best area possible and closest to the main centre would this make Lower Hutt a better candidate than Porirua or Upper Hut or is there other factors to consider around Wellington Demographics
When you refer to the main centre are you referring to Wellington or the CBD of that suburb?
In terms of what' the better suburb of the three, that' a hard question, if you look at rents, the rents in Lower Hutt are generally more dearer than Upper Hutt but it does depend entirely on each individual 'pocket' of those areas. There are some areas in Upper Hutt that have higher rents than certain areas of L/H and vise versa, same rule applies to Porirua
- What are vacancy rates like in these centres, is the tightening or the government sector affected the suburban rental market
- Would a $200K 300pw, 3 bedroom home attract professional people if it was in tidy condition or should I look at different type of properties
Generally more of a blue collar person however I'm just basing that on my experience.
- There has clearly been a short-medium term lack of confidence in the Wellington property market, what is the real fundamentals like, has the population suddenly declined, is the job market deteriating or is there real long term factors that need to be considered before investing there.
Not sure about this, I haven't noticed an increase in vacancy rates if anything I've seen a decrease in them.
- Is there Earthquake risk to consider with single level standalone homes in Wellington
More apartments I would say
Hope that helps
I hope my questions don't sound to derogatory, I think Wellington is an awesome city but I don't know much about the suburbs and just need gather information and would be grateful for any advice or perspective anyone who knows the investor market can provide
Cheers Brendon
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