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is buying block of flats in Wairoa a good investment?

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  • is buying block of flats in Wairoa a good investment?

    We are new to bproperty investing and are seeking advice. We have a property in Auckland which is negatively geared by $70 per week. Live in Gisborne and have come across a block of flats in Wairoa for $95k returning $330 per week, but with little if any capital gain. We are looking for cash flow positive properties but are unsure if this is a good investment due to little, if any, capital growth? Help please

  • #2
    Hi Marian,

    ... and welcome to the forum.

    The cashflow sounds fantastic, so I wouldn't worry about capital gain, which is uncertain anywhere, anyway!

    Things to consider are:

    How stable are the tenancies (and the tenants )
    How much management will be needed at what cost.
    How much maintenance is needed now and in the future.
    How attractive are the flats for re-letting (near schools, shops, places of work etc).

    Some food for thought - I'm sure others will comment too.

    cube
    DFTBA

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    • #3
      Yes, I agree with Cube in all you say in that post.
      Capital gains are a gamble anywhere, if the property is in a reasonable location that you can attract reasonable tenants quickly and with that amount of rental income, you should be fine.

      Regards
      Graeme
      Facebook Property Chat Group NZ
      https://www.facebook.com/groups/340682962758216/

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