what's an acceptable yield in Auckland ?

[dan1]

Hey guys, what would you consider the best obtainable yield on a investment property in Auckland? I'm thinking south Auckland and around 8%?

[Propertytrader]

hi there,i reckon if you want a good yield,invest in apartments in the CBD, you can get about 11%,i would not go for anything less, as cash flow is king thanks

[Shane D]

Hey guys, what would you consider the best obtainable yield on a investment property in Auckland? I'm thinking south Auckland and around 8%?

dan,

I spend a bit of time looking at properties here in South Auckland. Home and Income properties are still the best yield option out here. But yields have dropped. Papatoetoe you would be lucky to get 6.5%. Mangere East is where I am focusing my search right now. Still possible to get 7% or very close.

The only 8% or better properties I see have illegal incomes (converted garages etc). I wouldn't recommend those.

[Leftette]

7%!!?? That's not even close to break-even, so you'd better be praying for swift and reasonable capital gain. In Mangere East. Sounds to me like investors chasing and fighting over ever-decreasing scraps.

[elguapo]

you can get about 11%,i would not go for anything less, as cash flow is king thanks

What exactly are you buying with an 11% yield?

[elguapo]

dan,

I spend a bit of time looking at properties here in South Auckland. Home and Income properties are still the best yield option out here. But yields have dropped. Papatoetoe you would be lucky to get 6.5%. Mangere East is where I am focusing my search right now. Still possible to get 7% or very close.

The only 8% or better properties I see have illegal incomes (converted garages etc). I wouldn't recommend those.

That's exactly what I've seen, there really isn't any value at all in Auckland IMO.

[Walkerweir]

7%!!?? That's not even close to break-even, so you'd better be praying for swift and reasonable capital gain. In Mangere East. Sounds to me like investors chasing and fighting over ever-decreasing scraps.

Given the nature of Auckland residential property and increasing land/property values, a 7% yield is still a strong return. Based on a property worth say $450k (maybe a 3 bedroom South Auckland property), that would be $600+ a week in rent which is market rate for most likely below median levels of quality?

[Propertytrader]

hi Elguapo I buy apartments,i am not after capital gain,but after cash-flow for the time being thanks

[speights boy]

^ In what buildings did you last purchase apartments ?

[Davo36]

I'd be interested to know where these 11% deals are too

[Propertytrader]

hi my most recent purchase is c-vu building,but beware this building is not for the faint hearted or conservative investor thanks

[elguapo]

c-vu building,but beware this building is not for the faint hearted or conservative investor thanks

Does that translate to it being a complete POS with legal action, outstanding repairs, possible massive liability and all in all something no one in there right mind would go near? What does that yield when BC fees triple to pay for the legal action and repairs?

[Propertytrader]

hi there, there are 3 kinds of investors,define which one are you.

Type-C investor
Type-C investors are financially uneducated and look for people to tell them what to invest in

Type-B investor
Type-B investors seek answers. They often ask questions like:

• What do you recommend I invest in?
• do you think i should invest in real estate?

i define myself as type A Investor.

• Type-A investors
  Type-A investors look for problems. In particular, they look for problems caused by those who get into financial trouble. Investors who are good at solving problems expect to make 25 percent to infinite returns on their money. They have a strong financial foundation and possess the skills necessary to succeed as business owners and investors. They use those skills to solve problems caused by people who lack such skills.

[Maccachic]

Might be the issue you are having with lending.

[Shane D]

7%!!?? That's not even close to break-even, so you'd better be praying for swift and reasonable capital gain. In Mangere East. Sounds to me like investors chasing and fighting over ever-decreasing scraps.

It's all relevant. Auckland central suburb yields are around 4% and I am sure it's not much different up your neck of the woods.

Mangere East is very popular now and fast gentrifying. The No. 20 South Western Motorway will connect to the North Western in 2017. High demand from Middlemore hospital and Auckland airport workers. I am also seeing lots of first home buyers that are presently renters in central city suburbs and looking to buy.