how to choose a Wellington Apartment for investment?

[aisyah1811]

Hi Everyone,


My name is Aisyah, I am 34 years old. I and my husband live in Lower Hutt, Wellington.
We are planning to start a property investment, and dont know where to start.
I have read some stuff in google and lucky to find this useful forum.


So, I hope you can give me your insight of our plan.
The condition is, we have around $200k-$250k cash and plan to buy an apartment in Wellington CBD
within that price range (probably 1 or 2 bedrooms apt). We hope to have a passive income from the rent.


What do you guys think of my plan? and what are the things that I need to find out before buying an apartment.
I learned about yield and know that is one of the thing you need to considered when buying a property for investment.


For example, yesterday I saw this ad from trade me and it sound good to me.
================================================== =======
If you are looking for a hands-off investment with a good return, then this apartment within
the Bolton Hotel is for you.Currently leased by the hotel which also pay for the Body Corp fees and Rates.
If you are wanting to know more please contact me. - 51 m2- 1 bedrroom- Kitchen- Great city location-
Body Corp and rates paid by Hotel.
================================================== =======
Lovely 3 bedroom, corner, apartment in prime CBD location, currently operating
as a Hall of Residence for Victoria University students until January 2022. After
that time it will be possible to owner occupy or rent privately, whichever suits.
This is an opportunity to secure a property at an excellent price and reap the benefits
of this action when the lease expires. Currently managed 24/7 onsite, so you have no tenant
concerns and just need to check the bank statement each month!! Possibility of courtesy stay
over Christmas/New Year for owners and families.
================================================== ========

I choose a CBD apartment because I assume it has higher rental potential and easier to sell again in lets say 5 years time?


So yeah I am looking for a short term investment (5 years?).


I would appreciate any input you have regarding my plan.


Thank you very much,


Best regards,
Aisyah

[artemis]

There have been quite a few threads here about apartments inc hotel ones and bodies corporate. And some re student accommodation. Lots of fish hooks and they are better for experienced investors IMO. A guy I know did maintenance for a Welly student building. Many students did not look after the places well at all, which was a cost to the landlord.

Do not believe agent opinions about resale prospects - actually, check everything they say. Twice.

I think you would be better to look in your local area for a free standing property where you have control. If you are planning a property portfolio the sooner the better that you learn everything there is to know about rules, rights, responsibilities, returns, records, tax, tenant selection. Especially that last one.

The DBH tenancy website is a good place to start, and the IRD booklet Rental Income.

[BigDreamer]

I'm not familiar with Wellington Apartments but if they are anything like Auckland Apartments then you have to be very careful they are not leaky. Other than that, I have heard of a few investors who have made money from apartments (I have not invested in them personally so my knowledge is limited).

[aisyah1811]

Thanks Artemis for your input.
I got a lot of homework to do


Thanks BigDreamer, I have heard about leaky buildings
I thought its only related to the year it build?

[BigDreamer]

Thanks BigDreamer, I have heard about leaky buildings
I thought its only related to the year it build?

Not necessarily related to the year of build. The majority were late 1990s early 2000s but you could still get leaky properties/buildings so best to check prior to purchase.