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Where to Invest in NZ?

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  • Where to Invest in NZ?

    Hi, I am a newbie to property investment and this site and am in the process of selling my property in Auckland that was previously my home but has now been rented for some years. It will make some considerable capital gain which I want to use to purchase possibly 2 properties freehold for residential rentals to give me a passive income. Where in NZ do the experts think would give the best return on investment in today's financial climate please?

  • #2
    ROI? defined at cashflow?? - ... review the Gross and Net Yields by location.

    Some of the things you'll need to consider:
    > You need to ensure that the area you choose has steady employment from multiple industries.
    > How you're going to manage these properties. Will you manage yourself (which i don't recommend) or will you use a management company - if you're going to use a management company then you need to ensure that there is one you can work with and will
    > Current demand for rentals - is there an oversupply?
    > What is the yield of neighbouring suburbs/towns?

    There are many people on here who really believe their chosen location is the best... time will tell but there are likley to be pro's and con's on each choice. My pick is some of the suburbs in Porirua just outside Wellington. Others on here talk Palmy North whilst others suggest Hawkes Bay. There has been some strong yielding location in the South Island as well


    • #3
      Thank you for your feedback - this sounds like very good advice which I will certainly do my research on. Please could you explain what 'defined at cashflow' means.


      • #4
        You mentioned wanting an ROI that delivered a passive income - that means you want a strong cashflow (return) as a priority. Vs. potential capital gains. My feedback above was based on your desire for cashflow. If you're chasing Cap Gains you'd need to consult someone with a crystal ball - lots of rust all balls floating around this site.


        • #5
          Now I understand the terminology - yes that is exactly what I am looking for thank you.


          • #6
            I think you're trying to buy a cashflow, is that correct?

            The thing with property is it's not win-lose. So if you buy a property somewhere and the city next door goes up more, you didn't just lose at property.

            Honestly I'd start by getting some financial advice. It might be that putting all of your proceeds into debt-free properties is not the best decision for you. You need to consider asset protection as well as growth. My business partner offers a fixed fee consultation with a property bent to it. There will be others who do the same www.ifindproperty.co.nz/services/advice

            I say this because the main benefit I see with property is the use of leverage and you are saying you want to buy freehold. You could get 5% on your money from a well run REIT or 5% by buying a bunch of houses you need to then deal with owning.
            Free online Property Investment Course from iFindProperty, a residential investment property agency.