Quality apartments in Auck?

[eri]

hi all,
i'm closely watching apartment sales in auck with a view to buying one for cash and then renting it out. i think aparts in auckland will only continue to get cheaper so i'm in no real rush right at present

guess i could/should leverage that cash into 2 or 3 apartments but i'm pretty old school..... maybe later if this turns out well i'll look into leverage

worse than low rent is no rent so 1 of the theories i'm working on is that a top quality apartment in auck is still likely to be fully rented even if the rental has to be dropped from current rates

(the other theory is a bunch of the cheapest student boxes in managed buildings on leasehold land would return the best cashflow but.....)

i do like what i see of the pics on trademe of the metropolis, nice brown wood tones everywhere and BATHS! in everything they seem to have
cheapest studios seem to still be above $200K

aprts all in white leave me cold, i think they will date and look very 2nd hand very quickly

the statesman seems a little lower down on the rung than the metropolis, no baths etc, and are priced accordingly

what about others?

Dunn adds that good local apartment buildings like the Heritage and the Metropolis are under-priced.



which Heritage is that, there seem to be a few?


what about a ranking of these buildings


Precinct
Connaught
Towerhill
Quadrant


have i missed any out?

[Bob Kane]

Metropolis

I'd stick to the 44 m2 or 48 m2 size one bedrooms with a good view.
They seem to rent for around $450pw these days - 10% gross return.

I'd avoid the 36m2 versions (type 01 and 15) - poor views and hard to rent.

You haven't mentioned Quay West?
Buying for quality is a good move - I think it's essential with apartments.

[CJ]

Heritage is a hotel chain. They have two buildings next door to each other in Auckland. The "old" heritage which is built in the old farmers building between nelson and hobson and Heritage towers which is next door.

I am also interested in peoples views on:
1 Hobson
H47
Statesman
Quay west

These as well as the ones mentioned above appear to be the higher quality tower blocks?

[mortgage broker]

If you can try and get more than 50 sqm, this will help the re sale value, as a lot of lenders are hung up over this size.

[freeloader]

The docks apartments are particularly nice. Avoid anything under 45m2.

[tpr2]

I like
h47
Century on Anzac
88 anzac
97 Shortland
Statesman
towerhill
precinct
Ascent

depending on price and what your after.

I do like quay west as well but I am only familiar with the larger 3 beddy units

[CJ]

The docks apartments are particularly nice. Avoid anything under 45m2.

I thought these were leasehold and all owned by blue chip investors. I went looking as a tenant and it was like a ghost town (I think it had only just opened as the central air system wasn't on yet).

[PropertyDeal]

1 parliament street
14 waterloo quadrant
5 parliament at (character)
9-11 parliament streer (character)
Silo apartments in Emily place (corner Emily and shortland st)


The Statesmen is a quality apartment so I have heard. Silo is a character building and is also supposed to be quality.



Feel free to email me and I can send you some recent sales in buildings you are interested in to give you an idea of what they are going for - [email protected]


best of luck

[Keithw]

I thought these were leasehold and all owned by blue chip investors. I went looking as a tenant and it was like a ghost town (I think it had only just opened as the central air system wasn't on yet).

Correct- the land is Leasehold- claimed to be one of the better leases- no long line of developers in the line clipping the ticket, but you don't get much choice if you want CBD waterfront.

I doubt any Blue chip investors would own the Docks, the rental returns don't stack up, & I am not aware of Bluechip marketing them. Aldy Group & KEY2 & others did.

Building manager claims 90% occupancy at present. (It opened this time last year, but many investors were trying to onsell, so didn't put tenants in straight away.)

The Docks is for owner occupiers or investors looking for capital growth on CBD waterfront, who are prepared to carry the rental loss.

[tpr2]

I thought these were leasehold and all owned by blue chip investors. I went looking as a tenant and it was like a ghost town (I think it had only just opened as the central air system wasn't on yet).

You are correct CJ

[tpr2]

1 parliament street
14 waterloo quadrant
5 parliament at (character)
9-11 parliament streer (character)
Silo apartments in Emily place (corner Emily and shortland st)


The Statesmen is a quality apartment so I have heard. Silo is a character building and is also supposed to be quality.



Feel free to email me and I can send you some recent sales in buildings you are interested in to give you an idea of what they are going for - [email protected]


best of luck

I think the silo has sub 40m apartments which make them a little undesriable. Great looking refurb though.

[Green Fish]

Don't forget the carpark

Before the slump, you could value a carpark at 70k.

To be conservative, let's call it 35k now (minimum)

If you buy an apartment with a carpark, you can split the investment: Rent the apartment, and rent the carpark to someone else.

[Bob Da Builder]

Go for it but

When you invest, why not try to buy property that will be in short supply as it will appreciate faster. Appartments are easy to build and hence the over supply. Can't see this changing.

[Green Fish]

I only know the Auckland CBD, where there are numerous dreadfull eyesores composed of "shoeboxes" (20-30 square metres).

But the point is that these places still get a good demand. You will get a tenant, as long as the price is right.

The issue is whether that price will give you a reasonable return on your money and your time.

[tpr2]

Go for it but

When you invest, why not try to buy property that will be in short supply as it will appreciate faster. Appartments are easy to build and hence the over supply. Can't see this changing.

Auckland CBD apartments will shortly be in short supply. Very short supply.