Investment Property Under 320k outside Auckland

[kjoshi]

Hi I am looking to buy an investment property outside Auckland with 320000. Which area should I look for with good NET YIELD and also possibility of some capital gains.

Appreciate any advice as I am new to property investment.

Cheers
KJ

[Nick G]

You need to define "good net yield" and also "possibility of some capital gains" because the first is subjective and over time almost anywhere will go up in value due to inflation at the very least unless the town declines due to employment problems.

Without that info I would say Dunedin because you can get 9% properties there (for now, it's going up) in a main city. Wherever you do buy get a well located property so you have tenants through the inevitable down turns.

[spaceman]

FWIW ...I think Palmerston North is a good bet.......and Wainui in Wellington....... there are of course others around but these two seem pretty good to me.

I own property in Palmy, but none in Wainui.

Cheers
Spaceman

[Nick G]

Wainui, Rotorua, Palmerston North (Net yield may be a challenge), HB, Dunedin... heaps of good areas. You need to be more specific. Also you're not buying a share via a broker where the price is the price... so you could get a great deal in a hot market or a poor deal in a soft market depending on the house itself. Work with someone who knows the area you're buying in.

[Kbkiwi]

Plenty of apartments in central Wellington with good yields that can be purchased for under $320k, but of course capital appreciation probability Unknown.

[jimO]

i will be selling a 3 bed in DN soon just undergoing a reno around 200k

[kjoshi]

Thanks all for your reply. How about Hamilton. Is Claudelands is a good area. Thanks