Tokoroa rental returns/demand

[Heg]

Hi All,
Got a chance of what seems a good +vecash flow in Tokoroa. Went on to
Market rent info website, but there are no stats available.
Does this mean that proiperties are hard to rent out in this area? Some feedback and a rough idea of weekly rents from those of you with pproperties there would be a great help. Thanks
Heg

[muppet]

Hi Heg

Tokoroa has three main property managers. C21, Harveys and Lambertons. Lambertons manage by far the most properties.

Rents range from $80 for 2 b/r flats up to about $130. For 3 b/r houses rents range from $120/wk up to the top end of about $180/wk. Of course there are always exceptions to these prices.

Prices also depend greatly on location. We get $180/wk for one of our rentals but it has location.

The supply of tenants has been soft but Harveys at the moment have the lowest number of houses available for rent I have seen this year.

BTW where is this property located.

I have listed the PMs and their phone numbers elsewhere in the forum.

Regards

[Heg]

Hi Muppet,
Think we will go for it then. A couple of them are already tenanted so it seems silly not to grab them. Will just check to see if the tenants have good history.
Will go down next weekend for a look. Any hints on areas to avoid?
Cheers
Heg

[Dean@Massiveaction]

Heg, none of my business but my advice is you'd want to do a lot more research before you jumped into an area like Tokoroa. Suggest you pick muppets brains a bit more. I could give you a very long list of reasons to NOT buy in Tokoroa. You need to be sure it meets your investing goals and rules

[David-Suzuki]

Be careful buying anywhere that you don't have market knowledge.
If not, use a bird-dog or local expert. Muppet would be a good candidate, but there are other options.

[AustinWong]

I agree with those advising caution.

I have been to Tokoroa and had a good look around. I found it to be a place I personally would not dive into. In saying this I am not strong on market knowledge there though I have a fair idea.

Others appear to have invested succesfully there.

My suggestion is you have a good chat with Muppet. He is pretty switched on with the market in Tok'

Good luck..

L

[Gerrard]

Hey Austin - I read on another thread you have bought an IP. Congrats. How about starting a new thread and sharing the story.

Gerrard

[Heg]

Thanks guys. Have already arrange to pick Muppets brains and will proceed with caution. Guess I'm just eager to get off the starting blocks.

[duvetray]

also beware as muppet will no doubt tell you the ozzies via Steve Mcknight have been into Toke for some time now and have pushed the prices up for IP's

[Julian]

And from what I hear a good few have been selling up, taking the money and heading off for the gool old US of A.

Perhaps the most worrying statistic of Tokoroa is the declining population. Unless you see some reason for this reversing you could be buying into an area that it will be very difficult to raise the rents - due to supply exceeding demand.

Julian

[muppet]

Hi Guys

It isn't only the Aussies that have been buying up large in Tokoroa.

A number of Aucklanders and some outside Auckland have also been buying up.

People who stop and look in the REs windows still can't believe how low prices are.

There are a number of people who have substantial holdings bought a number of years ago.

Noticed on The South Waikato District Council website last night a mention about a declining population and wondered what they were doing about stopping it. Whatever they are doing they are keeping very close to their chests.

They have already put up the rubbish dump fees and rates are to go up by 5.4%.

[Aston]

This is a bit of bad press for Tokoroa and at the risk of being shot down in flames I suggest that it's a reflection of the type of teacher that the area attracts.

http://www.nzherald.co.nz/index.cfm?ObjectID=10336729

[Hec]

Maybe when its empty and the tumble weeds have taken over, a bit of lateral thinking / creative financing could transform it to some kind of Vegas or even a Dysney world .

Hec

[Aston]

Maybe a nuclear power site..... to provide for Aucklands ever increasing energy needs.