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  • Rotorua?

    Hi there,

    Just been preapproved for $250k (conditional on getting $300/wk rent) and need advice on where people would invest. Im based in Akld, and currently own 2 rentals, one in Akld and the other in Hamilton. Figuring $250k is not enough for Hamilton now. Has been suggested Rotorua would be my best bet, as next closest, decently populated area. Any thoughts much appreciated.

  • #2
    Originally posted by Marjie View Post
    Hi there,

    Just been preapproved for $250k (conditional on getting $300/wk rent) and need advice on where people would invest. Im based in Akld, and currently own 2 rentals, one in Akld and the other in Hamilton. Figuring $250k is not enough for Hamilton now. Has been suggested Rotorua would be my best bet, as next closest, decently populated area. Any thoughts much appreciated.
    Try Wellington
    1 bedroom Units sell for $250k and rent for $295pw

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    • #3
      Look at Western heights rotorua

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      • #4
        Rotorua will hit those numbers, however check out your rates and insurance costs before you start.

        The key is to manage risk when you buy and ongoing by knowing the area and linking up with a good PM.

        We have a very good property finder in Rotorua (Wellington too for that matter) who can help do that. Shoot me a PM if you'd like an introduction.
        Free online Property Investment Course from iFindProperty, a residential investment property agency.

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        • #5
          Thanks Nick. ALready in communicado with Debbie.

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          • #6
            If you do a search, you'll find a few threads on Rotorua from a couple of months ago.
            My blog. From personal experience.
            http://statehousinginnz.wordpress.com/

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            • #7
              We have flats in Ngongotaha which is arguably the @#^$&%^ of Rotorua and we get good tenants and strong rents these days.

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              • #8
                A bit of an update.

                BIG READ: Here's how New Zealand's first tourist town has come back from the brink.

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                • #9
                  Rotorua could have the Auckland problem. I recently read population has increased by 1000, sorry but can't find the link. Numbers of properties for sale have tanked with increases in rents. I have seen a real buzz about Rotorua. So how could Rotorua have the Auckland problem? Well residential building is virtually nonexistent with minimal sections for sale and lots of Maori land that will never come on the market. We are also starting to get infrastructure problems with long queues of traffic heading into CBD at busy periods.

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                  • #10
                    Hi Marjie,

                    What is your long term aims and goals?

                    Will a property in Rotorua help you achieve these?

                    Based on $250k loan and $300 rent, you would be cashflow negative. Therefore why would you buy this (I'm just trying to get you think this through and not saying it can't work for you).

                    For me, its impossible to guess the property cycle, but seems to be somewhere near the top for non Auckland. I would therefore be very careful about buying and make sure it suits your purpose.

                    Ross
                    Book a free chat here
                    Ross Barnett - Property Accountant

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                    • #11
                      Thanks Ross for your input. Yes I wouldn't ever/ buy anything cashflow negative. I just meant the lending is conditional on getting minimum $300/wk. i was aiming to buy low $200s (or less) with at least $300/wk. My aim/goal is to add a 3rd cashflow postiive property to my portfolio. As priced out of Auckland (except maybe an apartment though tentative about going there) and Hamilton. Rotorua was suggested as the next region closest to Akld where I live. Have you got another region in mind?

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                      • #12
                        I have been going out to Napier and Hastings, more than 60,000 people in both cities and they are only 18kms apart. So jointly its kind of like the population of Tauranga.
                        Hamish Patel | ph: 09 625 4693 | mob: 021 625 693
                        My Website
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                        • #13
                          Palmy predicted population growth similar to Wellington and significantly above rotorua, napier and hastings. That's where I've been buying at the sort of level you're looking at.

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