Good Suburbs in Hamilton.

[Elliot.t]

Hello everybody,

I am from Auckland and currently looking to get an investment property in the Waikato region and was wondering if someone could steer me in the right direction to as what suburbs I should look into.

Aims of this investment:

- Spend up to $350k.
- Get my footing on the property ladder.
- Good tenant base areas (families).
- 3-4 Bdrm "family" section.
- More focused on yield than high capital gain.

I understand that in each area there is "good" and "bad" streets but pretty much just want an over view on the areas that I shouldn't bother looking into and the areas that I should.

I'm totally new to property investment so any advice on other up and coming areas would be helpful although I don't want to have to travel to far from Auckland for maintenance or reno. Currently not interested in the Auckland property market I will try again in a few years when it has "cooled" down and I have some more equity.

[Damap]

Why not try to stretch in to the bottom of Auckland. It isn't going to get any cheaper later.
Liek this http://www.trademe.co.nz/property/re...-873550889.htm

[Elliot.t]

Thanks Damap! I will have to look into the lease agreement to see the details and do some sums.

[Damap]

There are actually quite a few deals under 400K still in Auckland. And they get dragged up as the median rises so are still great for growth and yield.

[Elliot.t]

What are the areas worth having a look around Auckland? Mainly south Auckland?

[Damap]

Just use trademe, put your top dollar at 400K and see what comes up. Yes it is mostly South Auckland, Tuakau and Waiuku.

[muppet]

Hi Elliot

Have a read of this thread about Hamilton.
http://www.propertytalk.com/forum/sh...light=hamilton

[Rosco]

Hi Elliot,

Below is what I wrote on a post in ykip in facebook. I suggest you investigate the inland port that is being proposed, as that is expected to add 11,000 jobs to Hamilton (that is huge in Hamilton terms). So areas close (but not too close) should become more sort after in the future, with rents and values increasing. Otherwise a little more info below

Ross


Hi Jo, talk to some Hamilton agents and property managers. Agents, Jo Harris from lodge or Daryl Fisher from harcourts. Property manager talk to qrm.co.nz and derrick or robyn if u can. Overall near cbd or river is generally good. Uni and hospital are obviously interesting areas but have plus's and minus's. Watch out for rent by rooms as often over priced and townhouses aren't that desired in Hamilton

[Elliot.t]

What do people think about Forest Lake? its close to town, only a short commute to Ruakura (while being far enough away to avoid construction annoyance) and is also on the north side of CBD closer to the Base.

[Rosco]

It's fine. Lots of villa's, character homes, so just watch extra costs if you are buying an older home. But as you say close to cbd etc

Ross

[Elliot.t]

I have found this property in Saint Andrews:

52 Garland Drive.
I had a look around the area (street view) and it looked OK.
Its on a reasonable sized section (610m).
Has area for children to play.
Has room for improvement inside and out.
4 Bdrms.

its on Trademe under "Don't sit on the fence ..." as I am unable to post links.

Any Hamilton locals give me any info on the street its on?

[muppet]

http://www.trademe.co.nz/property/re...-861253693.htm

[muppet]

I like the way they say it was built- 1980-1989.

[Rosco]

What is the expected purchase price?

What is the rent?

I would be looking to see if there is a way you can legally increase the rent and yield by utilizing the double garage. For example if you could buy for CV???? $310,000, and rent for $360, that is a 6% gross yield based on 50 weeks occupancy. If you then could spend $25,000 on sleepout, with toilet and shower in garage (with permit etc), rent the whole thing for $460? That gives 7% gross yield which would be getting closer to break even.

Then fix for good rate for say 5 years, then should work OK!

Ross

[Rosco]

I would have said average location just there, but too be honest you would have to drive down that exact street and couple round it to get real impression. St Andrews nearer the river is great, and nearer the town. Towards Te Rapa Straight or Wairere it starts getting worse. Vickery is quite commercial (or all commercial).

But is still close to the Base/Te Awa shops, and close to town, and river walks etc, so long term should be good.

Ross