Yields in Hamilton Today vs 2009/2010

[Purple Property]

What sort of yields are people getting for properties around the city fringes in nicer suburbs in Hamilton today vs 5 years ago?

Today looks around 4-5% from what I can see.

[Beginner1]

Here are some facts about Hamilton property price and rents. Hamilton property price average was $365,000 in 2007 Sep peak. It took another 8 years to get back above 2007 peak to $375,000 in April 2015. Average price in 2009/2010 ranged from $290000 to $320000. Current price in Hamilton is $491,000 with an average rent of $410 (3bed). Rent in 2009 was averaged around $360 for a property worth $300,000. These numbers would get you 6% gross return in 2009 and 4% in 2016.

[QRM]

We are finding there are still some properties that come up with a twist, these can help improve the yields above those that are currently showing on the statistics. Things such as minor dwellings and garage conversions. We have also managed to change a 3 bedroom house with a 120m2 floor area into a 4 bedroom. A basic tidy up of a property can also change the rental numbers quite dramatically. We have seen properties that look tired, get a full pull through, cosmetic things such as carpet, paint, drapes can make a world of difference. Obviously people must be aware of not over capitalizing. An example is a 3 bedroom house in Pukete it was getting rent of $350, with paint, drapes, carpet and a heat pump - total cost of $11K this took 2 weeks to do and increased the rent from $350 to $430. So clearly money well worth spending.

We are happy to help with an independent rental appraisal if anyone likes.

[investorak]

Hi QRM

What type of yields are you able to get in Hamilton once you do a twist?
Im thinking of investing in Hamilton but not familar with the area. Which areas would you recommend?
Can you recommend anyone or a mentoring group that focuses on Hamilton?

Thanks

[QRM]

Hi Investorak,

The yields we are seeing, once work is completed are 6 - 8%, many people are buying good properties in good areas and appear happy to settle for 5% and this is fine if that meets their criteria. We would prefer people stay more cautious and create higher yields, eventually interest rates will rise! The areas we are seeing good demand for and better yields are areas such as:

Pukete
Dinsdale
Beerescourt
Forest Lake
Glenview
Fairview Downs
Maeroa
Chartwell

Be mindful not all streets in these areas are good. We are happy to give you an independent appraisal on any property you are looking at, we are not linked to any real estate sales company so you can be assured that we will give you our opinion.

You can private message us if you prefer.

Cheers
Robyn Marsters
Quality Rental Management Ltd

[Beano]

Hi Investorak,

The yields we are seeing, once work is completed are 6 - 8%, many people are buying good properties in good areas and appear happy to settle for 5% and this is fine if that meets their criteria. We would prefer people stay more cautious and create higher yields, eventually interest rates will rise! The areas we are seeing good demand for and better yields are areas such as:

Pukete
Dinsdale
Beerescourt
Forest Lake
Glenview
Fairview Downs
Maeroa
Chartwell

Be mindful not all streets in these areas are good. We are happy to give you an independent appraisal on any property you are looking at, we are not linked to any real estate sales company so you can be assured that we will give you our opinion.

You can private message us if you prefer.

Cheers
Robyn Marsters
Quality Rental Management Ltd

Is the 6 to 8pc yield net of expenses ?

[Bodhi]

Hi Robyn,


What sort of work is being done on the properties you mention? Renovations or adding of additional dwelling ?

[investorak]

Hi Investorak,

The yields we are seeing, once work is completed are 6 - 8%, many people are buying good properties in good areas and appear happy to settle for 5% and this is fine if that meets their criteria. We would prefer people stay more cautious and create higher yields, eventually interest rates will rise! The areas we are seeing good demand for and better yields are areas such as:

Pukete
Dinsdale
Beerescourt
Forest Lake
Glenview
Fairview Downs
Maeroa
Chartwell

Be mindful not all streets in these areas are good. We are happy to give you an independent appraisal on any property you are looking at, we are not linked to any real estate sales company so you can be assured that we will give you our opinion.

You can private message us if you prefer.

Cheers
Robyn Marsters
Quality Rental Management Ltd

Thanks heaps for
the reply Robyn. Will be in touch