Chances of Capital Appreciation in Karori, Wellington

[jamesnz]

Hi there

is the stigma of wet and foggy still dominant on Karori, Wellington ?

is it advisable to invest in Karori ?

Generally, the least appreciation in properties is in the areas which have some stigma attached to it

I am getting a 2 bedroom house on Richmond Road Karori, which is giving me a nett return of about 6%
But if there is no capital appreciation, then I see no point in investing.
Can someone guide me if the present capital appreciation in Karori equal or more then the average Wellington city ?
and what are the futures prospects ?

Thanks for advising

[Nick G]

How has Karori appreciated relative to equally central suburbs in Wellington in the last 6-12 months? That is a good indicator for you going forward. From what I know it has shot up.

It also depends on the property. Is it in an area that would appeal to tenants? Good sun? Public transport? Insulation? Parking?

[Aston]

I am getting a 2 bedroom house on Richmond Road Karori, which is giving me a nett return of about 6%

Do you mean Richmond Ave? I can't find a Richmond Rd in Karori.

If it is Richmond Ave, I think it's a nice little area. I think it is at the 'wrong' end of Karori though... It is a long way down although I suppose it walking distance to the shopping centre and it's on the bus route. Yes Karori has a reputation of being wet and cold but everywhere in Wellington is wet and cold in the winter. I would look forward to the foggy days... if there is fog, generally there is no wind. In the summer time Karori is a really nice place to be.

I can't advise on capital gains etc. but if you're getting good sun, good insulation and the house is in reasonably good condition, you can't go too far wrong in Karori IMO.

[lissie]

Personally I've always been open to living anywhere in Wgtn except Karori - due it's coldness, lack of amentiies and one-road in/out problem. The only way you can guarantee capital gains is to do see the potential and do the work - add an additional bedroom, a garage, improve indoor/outdoor flow whatever. Just buying and hoping is speculation not investment

[fullom]

Been looking to buy in Karori for a while now. Everything city end gets snapped up very very quicklly. Went to an open home on Vera St yesterday and there was a line down the road. Was thinking of putting an offer on a house about a month ago, GV 860, went for 1.35 mill, same on a house in Shirley St, overs over 900k went for 1.4 mill. With these prices it will be better to do up my current house.

[Eugene]

Richmond Ave is a good location; good sun, on the bus route, central Karori and not too far out.
It doesn't have the extreme snob value of city end, but it is a respectable address, a nice neighbourhood favoured by professional types, and it has all the physical attributes to make it a nice place to live.
It is less than 7 k to the city centre.
The traffic is fine most of the time. Even at peak times you are only looking at a 5 minute delay I think.
Karori has good amenities; swimming pool, library, schools, parks, etc.
I quite often hear the comments lissie refers to, the climate would apply to Khandallah, Ngaio, Crofton Downs - all the Western suburbs.
People seem to like either the bushy hilly western suburbs or the close to sea eastern suburbs.
Karori is zoned for both Wellington College and Wellington Girls; Khandallah is zoned for neither, Ngaio for Wellington Girls only.
Families quite often move into zone to rent for two years, after two years they can move home and keep their kid at the school.
If the house is not costing you anything and doesn't have deferred maintenance, I would hang on, I reckon it will continue to appreciate.
The reason the returns are low is that the houses in Karori are so darned expensive.

[lissie]

I quite often hear the comments lissie refers to, the climate would apply to Khandallah, Ngaio, Crofton Downs - all the Western suburbs.
People seem to like either the bushy hilly western suburbs or the close to sea eastern suburbs.
Karori is zoned for both Wellington College and Wellington Girls; Khandallah is zoned for neither, Ngaio for Wellington Girls only.
Families quite often move into zone to rent for two years, after two years they can move home and keep their kid at the school.
If the house is not costing you anything and doesn't have deferred maintenance, I would hang on, I reckon it will continue to appreciate.
The reason the returns are low is that the houses in Karori are so darned expensive.

For many years I lived in Khandallah and drove to Karori West school around 7pm at night - the temperature difference in winter was as much as 2 or 3 degrees. Now I live in Titahi Bay and still drive to that school hall the temp drop is more like 5 degrees!

For a couple of years I lived in Keblurn - I'd drive to Karori to go to the mall - and quite often it would be raining through the tunnel when it wasn't in Kelburn. ....

And the place still doesn't have a decent supermarket or shops (what is that about there is a big catchement there?)

Every suburb in Wellington has a library - it's one of the nice things about the city.

[jamesnz]

HI there

Thanks for all the replies
The house has already been sold to someone else at a much higher price then what the owner was initially asking

People are buying properties without any due diligence, builders report etc.
Don't know whats happening

Thanks for advising

[Eugene]

For many years I lived in Khandallah and drove to Karori West school around 7pm at night - the temperature difference in winter was as much as 2 or 3 degrees. Now I live in Titahi Bay and still drive to that school hall the temp drop is more like 5 degrees!

For a couple of years I lived in Keblurn - I'd drive to Karori to go to the mall - and quite often it would be raining through the tunnel when it wasn't in Kelburn. ....

And the place still doesn't have a decent supermarket or shops (what is that about there is a big catchement there?)

Every suburb in Wellington has a library - it's one of the nice things about the city.

Interesting about the temperature drop - I don't have a thermometer in my car
Why did you go to the Karori shops instead of shopping in Kelburn? Or somewhere else? Convenience? Parking?
The mall building is shocking but I find the shops good and the shopkeepers nice and helpful.
The community is nice. People seem to like Karori and don't move even after their kids have moved on.

Anyway the house jamesnz was looking at has been sold - no accounting for preferences a mystery why Karori remains popular

[lissie]

Interesting about the temperature drop - I don't have a thermometer in my car
Why did you go to the Karori shops instead of shopping in Kelburn? Or somewhere else? Convenience? Parking?
The mall building is shocking but I find the shops good and the shopkeepers nice and helpful.
The community is nice. People seem to like Karori and don't move even after their kids have moved on.

Anyway the house jamesnz was looking at has been sold - no accounting for preferences a mystery why Karori remains popular

I don't have a thermometer in my car either - I'm talking about the experience of spending hours dancing in an un-heated school hall - trust me you get to know the relative temps of suburbs!

There is no supermarket in Kelburn - just over-priced 4 square and similar. Kelburn is a nice suburb but its shopping is very limited. This was back in the 90s - there are more supermarkets in town/Newtown now than there was then. I tend to shop outside the suburb I live in! When I lived in Khandallah I shopped most of the time in Johnsonville- much cheaper supermarket with more variety. Though the local New World had an incredible range of quality wine!