Advice on Investing in Auckland Units

[seema]

Hi

We were looking at investing in Auckland, not living in Auckland, just wondering investors still prefer to buy in Auckland?

We found few units in Papatoetoe with an yield of 5. 5

Units gain capital appreciation ? With 500k Can we get anything more than a unit in Auckland?

Media projects as if prices on the downward trent

wait and watch or go for it?

Thanks in advance

seema

[P.Bateman]

Hi

We were looking at investing in Auckland, not living in Auckland, just wondering investors still prefer to buy in Auckland?

We found few units in Papatoetoe with an yield of 5. 5

Units gain capital appreciation ? With 500k Can we get anything more than a unit in Auckland?

Media projects as if prices on the downward trent

wait and watch or go for it?

Thanks in advance

seema

I'd get the rent that the agents are advertising double checked by an independant property manager who specializes in that area. There were some good units going for around the $500k mark in Hill Park a few weeks ago have a look at them.

[JABlog]

Agree check the rental appraisal Yield of 5.5 equates to about $550 per week, I believe average is around $400 per week so 4 % gross yield

[Anthonyacat]

Just got a mailer from iFindProperty last night about something in Papatoetoe well under $500k at a good yield (for Auckland these days, anyway).

Just checked, and it was under $400k! http://www.ifindproperty.co.nz/curre...paign=20151030

Looks good. Not part of my current buying strategy, but I'm sure that'll get snapped up in no time.

[ivanp]

1.5-bedroom unit in two-storey block of eight in South Auckland looks good?

[Orkibi]

i own blocks of flats in Papatoetoe and the 2 bedrooms now range from say 360pw for smaller with say no garages to around say 420pw for central Papatoetoe with garage etc. if small block at Papatoetoe high school zone then maybe even more.
Talk to Sundeep from Barfoot Papatoetoe breach he is awesome and know the market inside out.

i rather buy complete blocks personalty so no Body cooperate etc and can ad value but can understand they cost more.
As i stated before on this forum we are or very near the top of the market so make sure you buy good deal.
Anything under 400k would be good now but for me, more like low 300ks for reasonable deal.

"investors stock" ie. Blocks of flats, house conversions, home and incomes are In General provide better cash flow but slower appreciating then stand alone Houses. but they still do just little slower or later in the cycle. the key is to buy something under value and ad more value to it.

Flats in smaller blocks say up to 3 on single level with garages appreciate much faster and more in demand over all then flat in larger block ie. 4+ or double story blocks.

With 500k Can we get anything more than a unit in Auckland?

do you have 500k Cash or can borrow up to 500k??

You can still get houses in some parts of South and West Auckland for around 500k. but it will be bargain and you need to know how to look for them.

[Orkibi]

1.5-bedroom unit in two-storey block of eight in South Auckland looks good?

Absolutely NO to me IvanP, To Small and two story are at risk of EQ Strengthening AND if you are at the bottom you have complains of noise from the top AND if you are at the top. you most likely don't have outdoor area. AND 8 is way to large block for single unit IMHO.

if you can own the block and EQ is no issue then should be consider, why not.

[BlueSky]

for Cash positive pretty much forget about Auckland , the bus has long gone unless you have lots of cash to subsidise but why ? in the hope of a gain - if the market doesn't keep going (cooling now) and there are no guarantees , you will be pouring your own money in for the tenants.

unless you add value to increase rent to cover all outgoings pretty hard atm.

[seema]

We can borrow 500k,no cash

If a standalone house appreciates say 10 percent

can we assume units can appreciate say 5 percent?

There is not much land with this unit

i own blocks of flats in Papatoetoe and the 2 bedrooms now range from say 360pw for smaller with say no garages to around say 420pw for central Papatoetoe with garage etc. if small block at Papatoetoe high school zone then maybe even more.
Talk to Sundeep from Barfoot Papatoetoe breach he is awesome and know the market inside out.

i rather buy complete blocks personalty so no Body cooperate etc and can ad value but can understand they cost more.
As i stated before on this forum we are or very near the top of the market so make sure you buy good deal.
Anything under 400k would be good now but for me, more like low 300ks for reasonable deal.

"investors stock" ie. Blocks of flats, house conversions, home and incomes are In General provide better cash flow but slower appreciating then stand alone Houses. but they still do just little slower or later in the cycle. the key is to buy something under value and ad more value to it.

Flats in smaller blocks say up to 3 on single level with garages appreciate much faster and more in demand over all then flat in larger block ie. 4+ or double story blocks.


do you have 500k Cash or can borrow up to 500k??

You can still get houses in some parts of South and West Auckland for around 500k. but it will be bargain and you need to know how to look for them.

[P.Bateman]

Why not look for a house (even a 2 beddie) that you can add value to in South/West Auckland rather than a 2 storey block of units. What sort of tenant are you likely to get here?

[Orkibi]

If a standalone house appreciates say 10 percent

can we assume units can appreciate say 5 percent?

There is not much land with this unit

I cant answer that directly, it depend on the unit and the location as mentioned above.

in general i believe that good large units in Auckland in good locations, with good school zoning and not many in a block will appreciate as much as houses.

The larger the block, the less the location and the unit the demand will be less and appreciation will be slower.

the golden rule is you make your money when you buy so if you buy well the equity is there from day one and you don't have to count on future capital growth. always buy property you can add at list 15% to. then you are ahead of the game from day one.

I hope it makes sense.

500k for unit in Papatoetoe is up there at the moment and probably a premium.