naenae lower hut

[icyly]

I'm in the market to buy! Have seen a few open homes in naenae (holme gr and Cambridge tce). Houses look good but I'm not sure about the area. Have heard plenty saying some parts of naenae are a bit doggy. I have been driving around over there and seems okay.

Anyone who is well familiar with the area could share some thoughts please?

Many thanks!

[Stevegoodey]

Hi icyly,

I'm a big fan of Naenae, I own there and have been into most of the houses for sale there in the last 8/10 years.

Holmes grove is quite a challenge given most people in the street just don't maintain their homes, and also its proximity to Judd cres can pull values down and turn buyers off.

Cambridge Tce on the other hand can be quite good in parts but I'd stay away from Semi Detached and the far Northern end of the Terrace.

Steve

[Emerson Willard]

I have had rentals in Naenae for 12 years and I have also looked at a significant number of properties over that time.
Steve's comments are accurate.

I would also avoid Kowhai Street and Strand Crescent. From a structural standpoint you need to be careful on or near Waddington Drive which has a stream running beside it. Over the years I have seen a few Brick houses with foundation problems. It seems the cracks get patched and the brick gets painted. Take a look at 1 Wilkie Crescent on the corner with Waddington Drive. Probably the weight of the rubbish inside doesn't help.

[Stevegoodey]

I've had some success in Kowhai as long as its not between the cemetery and the terrace, the Rimu street ends actually not bad.

I've also got houses on Strand and the quality of house and tenant is up and down but they are like most other places, some good and some bad houses.
(grain of salt I recon).

I love that 1 Wilkie house its possibly the most obvious example of a stuffed house thats still standing (and lived in!!)

Agree about brick ones, once they get seriously out of line they are rarely cheap or even worth fixing.

[Kirwee]

I'm looking to get back into the market again and have been looking at Naenae as well as Wainui and Stokes Valley.

Steve and Emerson have given great advice about Naenae, thank you.

Would you please be able to advise if there are any streets to avoid in Stokes Valley, particularly the Delaney Drive area?

Thanks, Brian

[Stevegoodey]

I'm not a fan of Wainui, its got a shrinking population and even in a good boom its value's don't lift that much.
Plus a good bargain house their is so cheap that even a small occupancy or maintenance issue can kill your cash flow and it can take months or years for the equity to recover.

As for Stokes Valley I'm less concerned.
Delaney, Shacklton, August and Logie streets as well as parts of George and problematic but not out of the question if purchased cheap enough.

We bought in Shacklton not too long ago, Purchase price was $132k for a 3 bedroom stand alone.
Reno was $35k and it re sold for $215k.

Not huge numbers at all but health enough.

[Kirwee]

Thanks for your comments Steve.
Until 18 months ago I lived in the Hutt but didn't consider Wainui or Stokes Valley an area to invest in due to the type of tenants it would attract.
I haven't seen any properties going for $132K; how do you find those?
My properties were in Garden Road and Frederick Street Avalon and had no real issues with tenants in that area.
Might have to lift the dollars I'm to invest and look more central such as Naenae, Taita or Waiwhetu.

[FJW]

Hi Icyly

Naenae is a great area, I have 2 properties that I own in Naenae and four in Taita and I go well out of them. I also have a large portfolio of clients properties out in naenae and again they do well. We even have properties in the lower socio economic area of Naenae and again we do fine with them. It all comes down to how rigid and tough you are on your tenant selection. In saying that though at times it can take a bit longer to find a tenant but its well worth the wait.

Hope that helps

Many thanks

Fraser Wilkinson
Manage My Rental

https://www.managemyrental.co.nz

[Emerson Willard]

Kirwee you can do well in any of the areas mentioned.

As Frazer states vetting of tenants is the most important factor for hassle free investing but having a reasonable property allows you to be more selective with who you pick. If you are investing for the long-term I would avoid properties without off street parking or those that get little sun in winter such as the top end of Delaney,Shakelton Grove and parts of George Street. There are some houses on George street that are perpetually changing hands so I would also avoid them. Some combination of lack of winter sun, the neighbors or the lack of off street parking explains the constant turnover in owners.

[FJW]

I agree Emerson, places that have no off street parking are very difficult to tenant more so if they are stand alone houses that appeal to families. Not so much of an issue when its for 1 / 2 bedroom units as its pitched to a differen't market i.e solo people, couples.

I'll add that if you purchase a stand alone property 3 bedrooms and up so its pitched to families avoid houses with elevated back yards as we find houses with those sorts of back yards put a lot of families off....

[Kirwee]

Thanks for your comments guys, I'm very grateful .
I had a drive around Naenae, Stokes Valley and Wainui today and looked at the outsides of properties that were on the market and the area that surrounds them.
The Delaney Street area of Stokes Valley is not where I would invest (as Steve mentioned previously in this thread) but other areas had good family type homes kept in reasonable order.
The numbers went well for a yield of about 8% + for some of them.
Naenae I know reasonably well but I still looked over some properties, again only from the outside, to gauge of what my money would buy.
I went into Wainui as a friend used to live there and I actually liked the feel of the place and have found that there were no vacant houses apart from a couple that were in need of a reno inside.
There's some good solid houses there on flat well treed sections and with a garage.
I have an agent in Wainui emailing me property listings before they go onto Trademe and these are I feel great rentals.
All three areas will be considered together with a possible do-up in Paraparaumu where I live.
Donna, if you read this would you please comment if there is a local landlords get together in Kapiti?
Cheers,

[Tomo]

interesting thread,
any thoughts on why elevated back yards put some families off FJW?

[pieface]

Kirwee you can do well in any of the areas mentioned.

As Frazer states vetting of tenants is the most important factor for hassle free investing but having a reasonable property allows you to be more selective with who you pick. If you are investing for the long-term I would avoid properties without off street parking or those that get little sun in winter such as the top end of Delaney,Shakelton Grove and parts of George Street. There are some houses on George street that are perpetually changing hands so I would also avoid them. Some combination of lack of winter sun, the neighbors or the lack of off street parking explains the constant turnover in owners.

I notice there's a property listed up the top end of Shackleton at the moment but it's been listed for a long time, despite looking like a fairly well renovated place. Is this the sort of place you'd avoid due to that spot under the bush?

Full disclosure: first time property investor, not looking for any big reno jobs rather low maintenance and high cashflow at the moment.

[FJW]

Hi Kirwee,

We have a couple down Delaney, it did take us around 1 and a half months to find a tenant and it was well worth the wait. They hiccup from time to time on the rent but they are genuine and they will catch up on their payments and square it.

Wainui is good as well, I personally own a couple of properties over that way and do fine with them (touch wood).

Donna T from Professionals is another good agent out there if you are looking to add another agent into the mix

Hope that helps

[kiwibean]

I also own a large property on Delaney Drive. massive 5 bedroom getting $380 a week, had the tenants which are really good family in there for 18 months and keen to stay on. I have had only a couple of small problems but pay the rent every week and really look after the property.

Of course nicer places would potentially get a nicer tenant but this is not the case in my experience.