Areas with high rental demand

[tim360]

Is there anywhere one can find details on areas where there is a high demand for rentals, in particular those where demand exceeds supply? I was thinking this would be a useful tool in determining which areas to focus on when looking for a new IP.

For example in the Auckland CBD supply probably outweighs demand (for your average apartment), yet in Devonport demand for quality rentals outweighs supply.

KPI magazine shows the numbers of bonds lodged for each month and average weekly rental but it doesn't indicate how many tenants there are waiting on property manager's books.

Perhaps I just answered my owner question, phone up local property managers to get a feel for the area...

[[email protected]]

Hi Tim. Go to http://www.dbh.govt.nz/housing/tenan...t%20region.asp That will give you current rent and bond info whenever you need it. Other than that, yes ask property managers. The above link is good in terms of knowing whether larger or smaller homes are in higher demand. As for an area you should do your research first and never be looking at property untio you know whether you want to invest in that area

[tim360]

Thanks Dean, that's a very useful website. We're a bit stagnant at the moment and haven't been able to make that leap to our next IP, mainly because we don't know where we want to invest.

We have an IP in Wellington and one in Queenstown, we're in Auckland at the moment but are fairly transient so not sure where we'll be in a years time. Any investors out there in a similar situation?

Many other investors only invest in their own area, but when you move about a lot it's hard to focus on one area.

[[email protected]]

I would say it's even more important if you're transient to pick an area. Coming into the slump phase of the cycle the only advice I would give is pick a main centre with a large stable population base and invest there. Hard to beat Auckland, Wgtn or CHCH. Avoid small towns like the plague for the next year or 3, unless you're living there and know your area inside out.

[fudosan]

http://www.dbh.govt.nz/housing/tenan...t%20region.asp That will give you current rent and bond info whenever you need it.

Unfortunately it appears to be an aggregate of the last 6 month data. I think it will be more useful if it lists rents for the latest month separately.

[CJ]

Unfortunately it appears to be an aggregate of the last 6 month data. I think it will be more useful if it lists rents for the latest month separately.

I agree. I am trying to look at trends in the areas of interest rather than the actual numbers as in a falling market, they will be too high and in a rising market, too low.

[tim360]

Cheers Dean, that sounds like good advice, so now is perhaps not the time to be buying CF+ properties in Invercargill or Inglewood site unseen?...

Interesting to see different investor's strategies, some ignore the cycles and just focus on their rules and numbers, others alter their approach depending on where they think the property cycle is. I guess if you're in it for the long term either approach should work.

What I would really find interesting is a survey asking tenants what they actually want, not what they've had to make do with. If an area only offers 80 year old bungalows then of course the stats will show 3 bed houses as being the most popular.

[TidBit]

District Council Web Sites

Hi Tim

Periodically on the various District Council web sites you find a Survey of Tenants.

Regards,
Annie

[duvetray]

a fairly crude band cheap way to test demand in an area is to run a couple of to let ads and see what responses you get for saya 2 bedroom and a 3 bedroom place, very cheap bit of due diligence before taking the final plunge in an area youre not very familiar with, the upside is if you are close to buying a place you may get a short list of tenants with whom to fill the prospective IP

[tim360]

What about residential vacancy rates, anyone know where we can get those?

There seems to be vacancy rates for commercial property, but not a lot around for residential.

[cube]

What about residential vacancy rates, anyone know where we can get those?

There seems to be vacancy rates for commercial property, but not a lot around for residential.

Now there's an opportunity - track the number of 'to lets', classified by number of bedrooms, from various sources, and release a monthly 'report' on the findings.

Similar to the job vacancy surveys that are done.

Any takers?

cube