Auckland Yields - where is best yield and how about Manurewa ??

[Bluekiwi]

I reckon you could propbably pick up house in Manurewa for around 200k by the end of the year, and maybe extract up to 300 per week in rent by 2010, and maybe interest rates in 2010 are down to 8%.

Sounds like a pleasant enough dream doesnt it

But what about the standard of tenants and what they might do your nice new little house, and with living expenses so high, paying rent might be a little on the backburner.

I want to stick to Auckland for yield as I want to visit my little properties just to check they are sleeping well at night, and whether they need any pampering or not.
So keeping away from the provinces.

But need a good yield to be able to expand, you know the 4 cashflow one cap gain quandrant thing.

But everyone, including Olly, keeps banging warning bells about the "south auckland slum" (just a non-pc generalisation sorry) regions.

Maybe its safer to just stick to cap growth props and fund the cash-flow deficit from increasig equity (The Yardney principle), or from trading.

[whitt]

Rents are up to $330+PW for some cheapies in Manuerwa already.

When you get to know the area well there is a few reasonable streets with nice housing.

Yes you can currently buy the area well but you need to know which gets the best tenants.

[kalovatt]

Manurewa rentals have been my stomping ground for ages.

What Whitt says is correct. As a general rule,

A) Don't buy stuff up shared drives, the little box houses with carports. The types of tenants in these wee enclaves are just not worth the trouble.

B) In general, stay away from Clendon, and the Shifnal Dr, Trimdon/Solveig St area, its infested with gangs at the mo.

Manurewa historically has been the last suburb to boom, and is generally the first one to fall again. Prices are already falling significantly.

In general, look for 3-4 bed houses on their own site, double garage in the central areas. Thats what I will be on the hunt for again in about 12mths time or so, when/if the house price to rent ratio comes right.

[Bluekiwi]

Hey thanks, that really helpful info.

So without giving away all your secrets, do you know who is a good property manager round that way, or you do it yourself ?

[Traff]

Manurewa

We own home and incomes in and around Manurewa , we renovate and always let them at premium rents !!We have had one bad experience but mainly good tennants and a lot of WINZ who are great if you sort them from day one as to what to expect.Why buy one income when you can buy two ? Keep away from rough areas and remember you get what you pay for in the main.Get to know every street and its good and bad parts and you will be ok.

There is a good demand for quality rents as a lot of landlords offer rubbish....

We brought a 3 bed and 3 bed minor recently which was actually a legal 4 bed and 3 bed minor and they will be cf + after tax and will value up well more then we paid including reno costs...

Good luck

Mark

[whitt]

I use Ray White in Manukau now as the previous PM's I was with got bought out.

They are not too bad. No problems with how they run things and seem always on top of issues.

Ditto above comments. .The area is the type you need to learn well. There is various types of housing and streets to avoid!!!
But on a positive side there are plenty of goldmines which will get good tenants.

[Bluekiwi]

We own home and incomes in and around Manurewa , we renovate and always let them at premium rents !!We have had one bad experience but mainly good tennants and a lot of WINZ who are great if you sort them from day one as to what to expect.Why buy one income when you can buy two ? Keep away from rough areas and remember you get what you pay for in the main.Get to know every street and its good and bad parts and you will be ok.

There is a good demand for quality rents as a lot of landlords offer rubbish....

We brought a 3 bed and 3 bed minor recently which was actually a legal 4 bed and 3 bed minor and they will be cf + after tax and will value up well more then we paid including reno costs...

Good luck

Mark

Hey Mark,

Sent you an e-mail yesterday, did it come through okay, it was the e-mail address on your website.

[Green Fish]

Highest Yields in Auckland

BlueKiwi: You should also check out "shoebox" inner-city apartments in the 120k price range for a freehold title. Net yield is around 6-7% (assuming 52 weeks rent per annum). It's difficult to get more than 4% anywhere else in the Auckland City Council zone.

One reason for this might be that the apartment market started going down over 12 months ago, well before the rest of the market.

[Traff]

E mail

Ill check with the boss tonight and let you know ...

Mark