Auckland 2 bedroom units

[auckland investor]

I have been looking at Auckland 2 bedroom units.

Brick or concrete block. Single level units in blocks of 4-5 units. Looking at West or North Shore as I know those areas better than anywhere else.

Looking anywhere from 250-300k price tag. Seem to be around 5-6% yielding.

A few questions...

- Are 2 bedroom units in demand by quality tennants and quick and easy to rent out?
- Are they as "low maintenance" as they are made out to be?
- Do problems arise often in dealing with the owners/tennants of the other units?
- Is it hard to make renovations (ie. adding heat pump, extractor fans in bathroom/kitchen) in a unit, needing approval from the other unit owners?
- Are these type of units good for a long term portfolio or are they just a cheaper stepping stone into the market, to be sold down the track for bigger and better properties?
- Would you rather buy a unit in a cheaper, higher yielding but lower class suburb (New Lynn) or a more desirable, more expensive lower yielding suburb (Birkenhead) knowing you are going to hold onto it long term?

Thanks!

[mrsaneperson]

I generally find that 2 bedroom units are lower maintenance compared to 3 bedroom house etc & there is more of a tenant demand for them. However price the rent reasonably as in my experience even $15/wk extra meant it will take longer to get a tenant.The return on them is not so great if you are just buying 1 unit , so a better investment would be a block of 2 or more.You mentioned buying "out west" ,there are some dodgy areas out that way,so just be a little careful.Rents are quite low out that way too.
With the small spacing available in 2 bedroom units i found it a good idea to supply a wall mounted dryer prehung in the bathroom area. Space was quite limited & often the tenants would often have different dryer models which would not always fit the existing bracket. Most small units dont have separate water meters so bear that in mind when fixing your rent as you cant charge separately for water unless there is a separate meter.

Some private garden space is often a bonus & not all have this.Garage for storage is often a good plus too.

[flyernzl]

My experience with two-bedders is that tenants don't stay as long as those in stand-alone houses.
Either you get couples who then have kids and hence need more space, or the couple splits up and go their separate ways, or they are flatmates and that tends to be short term.
Not necessarily a drawback, but it does create more work.

[Property-Manager-Auckland]

Hi,

Most of my West Auckland properties are 3 bedroom houses usually built in the 60s and 70s renting from $410 to about $510 with really good tenants!!!

I find that people looking for 3 bed houses come in waves….one day we will have large list of 3 bedrooms to rent and no interest and then all of a sudden they are all gone within a week.

The only 2 bed units I have had are in New Windsor and Hillsborough both freshly renovated for $370 to $380 and again really good tenants.

There seems to be always people in the market to rent 2 bed units as long as the second room is not a shoe box you cant go toooooo wrong

Flick me a message if you want a Rental Valuation or help with letting the properties its all free