Is Wanganui a place to invest in?

[Glorie86]

Hi all,

Just wondering if anyone can indicate if Wanganui is a good place to invest in a low budget property?We are first time investors looking to invest in a house that can have good cash flow return/our budget is tight due to the 60/40 Loan Ratio rule.
Any advice will be appreciated
Thanks
Glory

[Anthonyacat]

The general opinion you'll get here is that Wanganui is a no-go zone.

Some will say it's no good because of sub-100k population.
Some will say it's no good because of a shrinking population since last census.
Some will say it's no good because there's no work in the town.

All these things are true. But does it really make it a no-go? That's up to you. The houses are certainly cheap, can get a nice 3/4bed fixer for less than $150k if you look hard. Yields on those purchase prices have to be attractive. But there's a reason the property is so cheap; less people want it. You've got to decide if you're willing to take a bet that others aren't. That's often a good way to make a lot of money. But it's also often a good way to lose everything.

On the positive, I have friends and family in Wanganui, and they love it there. I like the town and may well move there myself one day - once I no longer need a job to sustain my lifestyle.

[Nick G]

Have a strategy/reason for each investment and work out what you are building towards long term.

Here's one strategy for investing in a cheaper town.

https://www.ifindproperty.co.nz/tools/blog/case-studies/case-study-reduce-your-home-mortgage-with-an-investment-property-purchase/

I don't know Wanganui at all well so if I was considering it, I'd drive down and spend a weekend meeting some property managers.

All that said, if you can stretch a bit further I'd look upper Kapati coast / Levin etc. Areas that are going to be propped up more by transmission gulley.

[Courham]

Good points Nick and Anthonycat.

There is money to be made in smaller cities/towns but you do need to do your research. In fact smaller centres are a great way to start, less capital required and often easier to get cashflow positive but if it is a town you aren't familiar with make sure you do your homework.

I would also suggest checking out the local property investors meetings and getting to know a few of the locals- they'll be able to give you some good advice. The Wanganui PIA can be contacted via their website.

Craig

[johnnyandtina]

I would go to Levin instead of Wanganui, Unless a new ferry service from there to Nelson has confirmed.

[Aston]

Unless a new ferry service from there to Nelson has confirmed.

That will never happen.

[Beano]

Hi all,

Just wondering if anyone can indicate if Wanganui is a good place to invest in a low budget property?We are first time investors looking to invest in a house that can have good cash flow return/our budget is tight due to the 60/40 Loan Ratio rule.
Any advice will be appreciated
Thanks
Glory

What sort of net yield is there in wanganui ?

[Glorie86]

Thanks everyone. Our budget restricts us quite a bit but we will do our research as suggested. Net yield roughly could be about 5%.

[PTWhatAGreatForum]

Hi all,

Just wondering if anyone can indicate if Wanganui is a good place to invest in a low budget property?

In short - no.

Unlike some in this thread who are speculating, I have lived there.

I don't know Wanganui at all well so if I was considering it, I'd drive down and spend a weekend meeting some property managers.

And what the hell do you think they will tell you?

Even your comment shows you need to get up to speed with how things work outside major cities. Good luck getting a Wanganui property manager, let alone a bunch of them, to see you on the weekend.

[Glorie86]

Thanks Michael NZ,
I agree with you and it doesn't seem essy to get anyone to meet you easily in Wanganui. Although I am still doing a full research.

Would you mind explaining a bit about your comment about living there and what not-so-obvious points stand out of the town that doesn't make it a derisable town to invest in?

Many thanks

[Don't believe the Hype]

In short - no.

Unlike some in this thread who are speculating, I have lived there.



And what the hell do you think they will tell you?

Even your comment shows you need to get up to speed with how things work outside major cities. Good luck getting a Wanganui property manager, let alone a bunch of them, to see you on the weekend.

hey Michael, ease up on Nick, he's just not lucky enough to know everything like you do.

[PTWhatAGreatForum]

Thanks Michael NZ,
Would you mind explaining a bit about your comment about living there and what not-so-obvious points stand out of the town that doesn't make it a derisable town to invest in?

See mine and others comments here:

https://www.propertytalk.com/forum/showthread.php?41370-Whanganui-is-even-32-000-cheaper-than-Invercargill-the-country-s-next-most-affordab

[Courham]

The fact Michael Laws is no longer there has to be in its favour.

Craig

[Glorie86]

Thanks Nick, Unfortunately the budget restriction doesnt allow us to look at better areas.

[PTWhatAGreatForum]

Thanks Nick, Unfortunately the budget restriction doesnt allow us to look at better areas.

Come and look over this way - Tararua.