South Auckland investment advice. Manurewa or Papatoetoe

[doridarien]

Hi,
I'm looking for an investment property in South Auckland, was before looking in north Auckland but it's already got too expensive.
and I would like to get some advice and different opinion regarding south Auckland investment.

First property I found is, around 90 sqm but 4 bedroom house in around 400 sqm section with around $500 or possibly more rent in a good location such as Papatoetoe or Mangare east.
or descent size 3 bedroom house and possible minor dwelling in large 750 sqm section with bellow $450 rents but less desirable area such as Manurewa or wiri otara.
In terms of the house quality, they are not modern but both reasonably clean and doesn't need renovations.
if both yield are the same which would be the wise investment?

I heard manurewa, otara are the first suburb to go down the price but is that really matter for investment property I know eventually property price will go up and section size reflect property value the most, I think larger section in a future prospect area is better than small section in a already expensive locations.
What's your thought?

[AMR]

We live in Papatoetoe and invest in Manurewa. Personally I would go for something that is subdividable, there's not much margin being paid for subdividable properties at the moment compared with smaller sections (the houses on smaller sections have really shot up, some units have gone for $550k+ in Papatoetoe)

Go for a larger section in Mangere East (600 sqm +), it's marginally pricier than Manurewa at the moment but far better located.

[Orkibi]

i prefer Papatoetoe but its hard to get anything that stacks up these days. out west still good.
central Manurewa can be OK. for buy and hold in Manurewa i will go for minimum 3 bedroom house or 2 bed with 100m2 floor area minimum and min 600m2 land. if Unit/Flat then 2 bed min 55m2 single level block, with maximum 4 units.

[Damap]

I second Papatoetoe. I threw a party the day I got out of Manurewa. Tenants just a headache.

[webhostienz]

Papatoetoe and Mangere East...anyway over manurewa. But having said that the costs in these suburbs have increased a bit so it is hard to get good buys there.

[doridarien]

Thank you all for your opinions, I'm looking at Mangare east(east massey road) and indeed price has increase quite a lot. I can see there were some 600+sqm section houses sold around 600k during sep-dec 2015. it's now pricier than that. In papatoetoe I think it's around 700k for full section or even more.
not sure if it's worth spending that much to buy in south Auckland.
Is it worth buying property in 350 -400 sqm section over flat or unit? I'm not sure if there are any 600+ section in around 600K now. so much increased even in south auckland.

[Orkibi]

I'm not sure if there are any 600+ section in around 600K now

there are few houses on 600m2 sections in Manurewa and Mangere East.. they are just not seating there in the open going to Auction.
Im looking at 2 at the moment for well under 550k. Actually there are some recent sells In both areas under 500k.
im not sure from where do you get the idea that there are no buys under 600ks... don't believe agents who hype things up its juts going to discourage you..

[doridarien]

600smq under 550K in Mangere East? I can find some in Manurewa but not in Managere East. I can't seem to find them in trade me. cv are around 450k and actual sales are well about 35% above that. Am I looking at it wrong way?

[Orkibi]

I can't seem to find them in trade me

you are not likely to find many of them on trade me.

[doridarien]

you are not likely to find many of them on trade me.

Orkibi, I'm curious as.. what is your searching method? or do you just put an offer that would give yield that you require?

[Orkibi]

I buy privately, mainly off market. And use buyers agents.
In this market I trade more then hold but in slower market I buy to hold long term.

Yes, I offer based on numbers that works for me best (within reason), and then adjust the price, but mainly the terms to the vendors needs.

When you get a Propery with an upside often you can offer closer to the vendors expectations, provided they are not to high.