How are these as investment property in Hamilton?

[quebec]

I have absolutely no idea about Hamilton but planning to drive down this weekend to have a look at few properties to invest. I am looking to invest around $350,000.00. I have found some properties but not sure what to look for. Any expert advice would be appreciated.
http://www.realestate.co.nz/2596266 I like this one, few more in the same complex.

http://www.realestate.co.nz/2595791

http://www.realestate.co.nz/2542065

http://www.assuredproperty.co.nz/lis...illarney-road/
http://www.assuredproperty.co.nz/lis...illarney-road/
http://www.assuredproperty.co.nz/lis...illarney-road/

[Rosco]

Hi Quebec,

There are quite a few things to look at and compare? Why these townhouses over a free standing house? I would suggest you look at some houses to compare to, and think about future growth of each. Normally you would buy a townhouse for cashflow/return, but these don't appear good!

My experience is that new townhouses are popular for about a year while they are new, then value and rent drops, before going up again.

1) What is cashflow like?
Also get independent property appraisel to confirm rent is realistic and sustainable!
a) 5.9% gross yield (real estate 2596266)
b)5.5% (real estate 259 5791)
c) ??
based on 50 weeks and info in advert

2) number of bedrooms

3) Area
a)University - so depends on whether you like Uni students and watch missing the Nov to Feb period!
b) Frankton? I would have said Dinsdale. Lots of high residential in this area, but close to shops, school etc. I don't like Dinsdale personally, but lots of tenants seem to quite like it
c) Massey St, Frankton. Again I would say Dinsdale. Very busy road!

4) How many units in development?
I think the Massey St one is part of a bigger development.
I prefer 3-4 units, so smaller!

5) How big a unit

6) Parking - this is becoming a biggie as both units have crap parking. Also most tenants have more than 1 car, but you only get one carpark. Off road parking is often difficult in these areas

7) Overall cashflow - so rent less all expenses, including fair repairs, body corp, accounting, rates, travel, property management etc. I'm guessing all of these would be negative $5k plus, with 100% mortgage and working on 5.5% interest rate.

Kind of tenants you will attract.

For properties from a developer, I would
- check with a couple of independent real estate agents, to see if the value is market value
- check with a couple of independent property managers to see if the rent is market value

Ross

[speights boy]

Hnz.....dyor.

[primal]

Hamilton East is good for students. But between Nov and Feb they will be away so no rent till that period.
I saw those properties also and that's the advice I was given.
Don't invest in Nawton.
Invest in Hamilton north, rototuna, flagstaff, .
Don't invest in Hamilton west.

[Wayne]

Don't invest in Hamilton west.

Wow - that's broad!
Pukete is a popular area close to The Base and lots of industry for employment.

[primal]

Pukete is also booming. The best place to get rent appraisal is from property management companies located in Hamilton. Real estate I don't trust as they only want to sell properties.

I am also in search to invest in Hamilton but I think it's better to buy unit as it can be bought below 400k and good rent yield. Buying a 500k house the rent should be above 600pwk.
If u buy a 500k house and 400k house with same yield it's better to invest in 400k. You will save 100k and use that money to buy another investment house.

Let's see how my search goes.

[Rosco]

What is vacancy on units?
and repairs?
Rental increases?
capital growth long term?
body corporate fees?

Often the gross yield is higher on units and townhouses, but if you look at the whole picture, I'd prefer free standing houses.

Ross