What about Rotorua?

[AustinWong]

I reckon that Rotorua may be under rated.

What does anyone know about the market?

What areas would you avoid?

What areas would you consider?

Cheers

L

[MiniMogul]

Yeah, I reckon Rotorua is a go. In fact I am looking at a few there at the moment through a local. Tourism, lakes, scenic, large size, CF+ve, within coo-ee of Auckland, what more can you ask for?

I thought it was a bit overpriced there for a bit, but it's definitely back on my radar now.

The Fordlands - Ford block - apparently is the area that a lot of rental managers won't manage. Rough etc. Though having said that I know a couple of investors who own property there (in the ford block) and they get them managed and report no probs. Plus there are CF+ve deals there right now.

Hey, who knows, it could be the next area-in-transition!

[Monid]

I too think Rotorua is a goer. But then I would we bought up there in 2003... Will it has boomed like everywhere I think there are still some reasonable houses there.

As Mini notes Fordlands is the 'bad' area of town. We have one property in Fordlands ourself and have had no worries, actually it has been our best performing property $170 a week for a $50000 outlay, no major repairs and no vacancy yet, touch wood.
So I think even Fordlands isn't too bad. And it is right next to one of the good areas.

The other bad areas in Rotorua are sort of odd, Kouto and Owhata are both very close to the lake which you would think would make them popular.

I've been looking there again and have been surprised to find properties in middle-good areas at reasonable prices >$130000 which are either cashflow neutral or barely positive according to our calculations.

So I'd say go for it!

If you do go ahead with Rotorua, I would get Rotorua Rentals to manage your property, they have a great team.


Cheers David

[drelly]

I've never made any effort to seriously look outside of my home town as I put it in the "too hard" basket but just looked at Rotorua.

The prices are very similar to Whangarei about 2 years ago and this is "post-boom"??? Sheesh... must have been cheap before! I did notice that almost all in the <$150k range are poorer quality though.

What is demand like there?

[Monid]

In late 2003 you could pick up 3 bed room places in Fordlands for $35000-$45000, and when we were buying the agents told us we were too late the really cheap ones had already gone!

Rotorua has always been a cheaper town, crazy really given the number of people there, the life style the tourism etc...

I get the impression though that the boom hasn't effected the upper/middle level properties as much as it has the lower level properties.

The has been a huge amount of development in the town over the last year, with a new huge Harvey Normans opening up, and a couple more big department stores. So it seems to be booming.

We have had no problem renting out our properties there. We gave up looking in Feb last year since anything we spotted was sold before we saw it... I don't know now but it was jsut wasting too much of our time. I get the impression that things have come off the boil a bit though. That said as a holiday town, traditionally crowded over new years and Jan sales are probably up with some holiday shopping!

[the_editor]

Rotorua property

Hi All
The NZ Property Mag - NZ's Official property investor mag - ran a feature on Rotorua in a recent issue. If you would like a copy of this issue please send your details (postal address) to [email protected] and we will send you the article.
Cheers
Philip

[fudosan]

Re: Rotorua property

Hi Philip,

Welcome to the forum.

If you would like a copy of this issue please send your details (postal address) to [email protected] and we will send you the article.

This service is definitely welcome on this forum.

[MiniMogul]

Bugger all capital gains since 1998.

This is interesting to me as it seems that perhaps Rotorua was way expensive for 1998, so hasn't moved much, (or were there a lot of new expensive places which skewed the median???) - because certainly the bottom of the market has had gains in that time. (anecdotally from investors - and as noted here.)

But, meanwhile the rest of NZ is catching up. Now Rotorua seems 'reasonable' again, as rents have meanwhile been rising. Comparing it to Wanganui, let's say. which perhaps was underpriced but which has moved a lot, Rotorua I reckon has recently popped up as being on a par for investing (i.e. 10 percent returns on decent rental properties)

decent sized town, pretty, growing economically at greater than the national average, within cooee of Auckland. what more could you want!

[AustinWong]

Hi everyone,

I took up Phillip's offer and how generous was he.

I expected an email with the articlel and ended up receiving 2 new copies of NZ Property Mag..

I didn't really know much about the magazine, but looks like good reading. I may just yet subscribe.

Thanks

Phillip.

[Simon999]

We bought some units in Ngotahaha.

They have worked out okay so far!

Rotorua rentals seem to be the guys to use!

[pooky]

Hi all. I'd like to thank Phillip as well.

Was only expecting a photocopy of the rotorua article , but recieved the whole magazine.

Thanks a lot. It's really appreciated.

[landlordtobe]

Phillip send my copy to me here in Sydney. What a top bloke. Lots of good stuff in the rest of the magazine too.
thanks!
Melissa

[brendanmarkhall]

Are you looking to buy in fordlands. I have a contract on a three bed. CV 116 PP 85k finders fee 5k. Let me know if you are interested. [email protected].

[Stevegoodey]

You might be waiting a while that last post was 4 years ago....

[Orkibi]

We have few great deals In Rotorua at the moment with 10% yield and equity upside.

you can PM me for info or have a look at Caveat emptor.

good growth prospect with new international air port opening up.