Is Hamilton Next?

[BigDreamer]

Saint Andrews is highly desirable for both tenants and home owners. I'm not surprised the property sold for over $400k.

[muppet]

Fonterra spending $250m at Lichfield just outside Tokoroa.
Heard tell that about $80m to be spent at Kinleith by the new owners.
A new railway siding has also been built.

[donthatetheplayer]

Is there a thread for posting "Property wanted" notices?

I'm looking to buy a property in Hamilton and want to solicit inquiries from anyone wanting to sell privately.

[Bluecoat]

I was keen for this one in the end I decided I like my chances in outer suburbs in Auckland rather than Hamilton. Hamilton it has a nice and steady growth but very sensitive to downturns and nothing spectacler to write o home about.

Look at the views on this one - My take is if Auckland if you speculate and things turn to custard you can hold on with slow growth but places like this you will be stuck with it for a very long time.

http://www.trademe.co.nz/Browse/Listing.aspx?id=912472876

[donthatetheplayer]

New build vs existing property for IP in Hamilton. Any thoughts?

Looking at new builds in Rototuna North (which I've never really liked to be honest) vs existing properties of a similar value in good established suburbs.

What will be easier to rent to good tenants?

What will achieve better capital growth over next 5-10 years? Yields look pretty similar so long term rental income (which is my primary motivation) will be similar. So the deciding factor is possibly on the capital gain side.

Any other thoughts?

[BigDreamer]

I was keen for this one in the end I decided I like my chances in outer suburbs in Auckland rather than Hamilton. Hamilton it has a nice and steady growth but very sensitive to downturns and nothing spectacler to write o home about.

Look at the views on this one - My take is if Auckland if you speculate and things turn to custard you can hold on with slow growth but places like this you will be stuck with it for a very long time.

http://www.trademe.co.nz/Browse/List...x?id=912472876

I was at the auction room in hamilton today. This property went for $462k. Believe it or not I thought this was a decent price. I own houses near by and have always had great tenants. Compare that to buying in the outskirts of auckland (which I also own homes there) you will 1. Be lucky to find anything in the $400k range and, 2. if you do find you will have awful tenants who will damage your property.

I prefer Hamilton good areas like Saint Andrews over Auckland outskirts any day.

[BlueSky]

I was at the auction room in hamilton today. This property w ent for $462k. Believe it or not I thought this was a decent price. I own houses near by and have always had great tenants. Compare that to buying in the outskirts of auckland (which I also own homes there) you will 1. Be lucky to find anything in the $400k range and, 2. if you do find you will have awful tenants who will damage your property.

I prefer Hamilton good areas like Saint Andrews over Auckland outskirts any day.

Oh yes long term and good cash flow. to give you some perspective, However cant beat Auckland for capital gains new house built in 1991 $225K st Andrews sold last month $530K

new house built in East Auckland built 2001 $300K sold this year for $850K.

[BigDreamer]

East Auckland and outskirts of Auckland are two very different areas.

Auckland has had great capital gains and if you are happy with taking the risk of buying a property in Auckland at this time of the cycle rather than buying in a growing area (Hamilton) which although not as big as Auckland is only just picking up in prices.

Both cities are wonderful. I only gravitate toward Hamilton because it is less risky than buying in Auckland at this stage.

[donthatetheplayer]

The latest sharp drop in global dairy prices has led to growing expectations that there will be a drop in farm prices, according to Rural Value, a division of Quotable Value.

http://www.interest.co.nz/rural-news/76817/qv-arm-rural-value-has-seen-definite-change-sentiment-after-latest-sharp-drop

What does it mean? I know residential house prices aren't directly affected by farm prices. Nevertheless, what does this situation mean for investment property prices in places like Hamilton which rely heavily on income from dairy?

It can't be good can it?

[speights boy]

Perhaps lower than expected rental increases, and an increase in slow payers ?
The Waikato dairy industry could face a $1 billion loss in income if price falls below $4

August 7th is Fonterra's next forecast review.

[HouseWorks]

New build vs existing property for IP in Hamilton. Any thoughts?

Looking at new builds in Rototuna North (which I've never really liked to be honest) vs existing properties of a similar value in good established suburbs.

What will be easier to rent to good tenants?

What will achieve better capital growth over next 5-10 years? Yields look pretty similar so long term rental income (which is my primary motivation) will be similar. So the deciding factor is possibly on the capital gain side.

Any other thoughts?

Existing properties ALWAYS have more potential than new, it's just what it is, while new brand properties often drop in value unless the market is red-hot, because of depreciation and a preference by some. New homes probably rent easier initially while they still look good but you can also make an existing home look brand new with a good clean and basic maintenance etc. Then the rent goes up and yield return improves. Existing homes are far better option for long-term landlord.

[marklowes]

Australia iron ore prices tanked well over a year ago thats why we almost got to parity with the AUD, and less nz ers moving there helping net migration. Aussy house prices have marched on unimpeded and fuelled by low interest rates dispite all this.

I think we'll keep seeing property prices rise with low interest rates and the rbnz might have to bring in bank capital requirements and classification of loans to make interest rates for landlords higher by perhaps .25-.5%.. Auck has to consolidate if it doesn't we will see a crash, I'm hoping for a plateau and consolidation which won't hurt too many people except for the big neg gearers.

[Bluecoat]

East Auckland and outskirts of Auckland are two very different areas.

Auckland has had great capital gains and if you are happy with taking the risk of buying a property in Auckland at this time of the cycle rather than buying in a growing area (Hamilton) which although not as big as Auckland is only just picking up in prices.

Both cities are wonderful. I only gravitate toward Hamilton because it is less risky than buying in Auckland at this stage.

Absolutely, I don't dispute that at all. Its a good strategy. at least you are active in the market, over here its a waiting game now for the next cycle.