Property Investor Mag - Growth hotspot Cannons Creek Porirua

[Don't believe the Hype]

Someone is investing there... The can't be all these patched gang members and beneficiaries pushing up prices can it?

who said you can't have high yield and high growth? $45k-$50k (20-25%) growth in a year off a base house price of $180k- $200k - renting for $300-$350/wk (9-10%)

It's been a good year!

'Cannons Creek, Taita and Clouston Park had the biggest median value growthin Porirua, Lower Hutt and Upper Hutt –all jumping between about $45,000 and $50,000over the past year' - Dompost

http://www.stuff.co.nz/dominion-post/83830314/Wellington-property-market-still-stratospheric-a-year-after-liftoff?cid=app-iPhone

[Lissica]

i do live in the area... Although not CC. I'm in and around the streets of Eastern Poriria daily - I know the place better than most I would be prepared to say.

To Donna's point the area is gentrifying - the number of renovated ex state house being sold to young professional couples is on the increase.

Perhaps, but they are certainly not sending their kids to school there.

My mum taught at Porirua College in the 80s/ early 90s. We went for a drive there a couple of months ago. ..it's a shadow of its former self. Run down and massively downsized.

[Don't believe the Hype]

I won't send my kids to school in any location I'm investing in... Not sure I understand your point

[Nick G]

All it takes is one strong school principal to turn it around.

[Don't believe the Hype]

Only time I've been there recently was to retrieve my stolen car.. . as I was there the criminals came back to hassle me. Patched mongrel mob wondering around. Was on some side street off champion. Police moved them on that's it, told me someone should give them a hiding! (under age to arrest i think, still twice my size).

I've spent 6+ years looking at cheap areas in welly region to get a decent yield (naenae, bad side stokes valley, East porirua) and everytime ended up buying another back in Palmy instead. In palmy i was able to get the yields without having to deal with the mongrel mob. Lower Hutt city population growth is fairly poor also. Wellington city is good, Palmy is good. Porirua I am not sure?

Agree Titahi Bay is nice and I just missed out on an asbestos roofed/clad place there which is probably worth a lot more now but would become hard to sell again once the current buying frenzy ends.

marklowes - Palmy north seems to be much safer by all reports... http://m.nzherald.co.nz/nz/news/arti...ectid=11708164

[Don't believe the Hype]

160 champion st cannons creek... Yes!!!! Cannons creek... https://trademe.co.nz/1176838371

things are a changing in the creek... If you're in Wellington and you've discounted P-town based on historic biases time to take a look...

[Don't believe the Hype]

Having viewed this property I think it will sell for around $300k - maybe even a touch over...

Purchased in May for $190k in May... $4k less than the previous owner paid in 2008.
reno cost ~$40k
holding/selling costs assuming 100% borrowing $5k - $7k

Likely profit on this Reno $80k BT. $15K/month not a bad result for managing a few tradies.

Nice safe flip for the vendor as if they can't get their price they could rent this for $400/wk delivering 9% gross yield

while maybe not the same profits you see trading property in Auckland the risk profile is far lower... As you're risking less capital and can hold if not sold in a CF positive position.

disclosure - I have no financial interest in this property.

[Don't believe the Hype]

one side of 2x3br unit in the heart of Cannons Creek sold recently for $380k - this is not a typo. The vendor bought the unit for $180k and four months later sold the renovated property on a cross lease for $380k.

http://www.professionals.co.nz/property/PPM12636/2/195-bedford-street-cannons-creek/

[Don't believe the Hype]

Latest data on sales to March showing Porirua Eastern Ward (cannons creek, waitangirua, ranui heights and Ascot park) up 48%

https://www.stuff.co.nz/business/103163645/ten-per-cent-fewer-houses-change-hands-in-march

I've been reporting here on this and thought some of these sales must be anomalies but they just keep happening. Combine this with rental increases that are maintaining yields there is a high level of buyer confidence.

[Don't believe the Hype]

More positivity around Porirua as an investment choice. This time the low end - Cannons Creek.

http://www.stuff.co.nz/business/82334127/some-parts-of-the-country-are-still-to-reach-their-price-peak-data-suggests

Long lambasted by almost everyone as the end of the world, avoid at all costs it is now emerging as a potential hotspot.

Porirua median house prices are unreliable given the large area and huge variance in property types and suburb demographics... For this area you need to break it down into specific suburb growth - Cannons Creek, waitangirua and Ranui Heights have picked up since Jan this year and continue to be hot.

Articles like this one and the one last week on Titahi Bay auction result will likely move the herd opinion and when they take a look they'll see great value...

Add this to the fact that these areas (even fully renovated) sit comfortably under Kiwisaver limits for support and now you have First Home Buyer interest...

Now for you investors - needing 40% of $300k is about the same as 20% deposit on $600k for something in the inner ring suburbs of Wellington... So you're still able to buy an investment property but your location choice may be about to change!!

Perry - how's this one for a prediction??

[Don't believe the Hype]

Hi

I live in Wellington and I would definitely not spend my money in Cannons Creek.

Porirua is a great little city, it has some nice areas and no so nice (to put it politely) and the people are friendly.
The Creek has high crime, gangs (Mongrel Mob the main players in Porirua) and beneficiaries. If you are keen to lose money and have tenant drama's it's the place for you.

I would suggest you look at other areas in Porirua if it is the place you want to invest.

How much money do you think I've lost since this post in Aug16??

[Don't believe the Hype]

Perry... perry... anyone...? Am I all alone here talking to myself?

[Bullant]

Woo, I had a place as a rental in porirua 25yrs ago. 3 bdrm up & 1 bdrm down, sometimes you got to start somewhere. The positive of Porirua is it's 15 mins to wgtn.
There are nicer suburbs like plimmerton & whitby that are more landlord/tenant friendly, but the cost to is high. Also their rates are quite high. My 5 cents worth.

[Lighthouse]

Obviously, things have worked out well for you with your Porirua investment strategy.
What is it about the way you do things that made this a successful venture for you?
How would you have fared in Porirua if history had taken a different turn?

[SimonW]

Back in 2004-2006 I lived in a house in Ranui Heights - a mere hop and a skip away from Cannon's Creek. The actual house recently sold although I don't know how much for. It was brand new when we rented it for $360 a week from memory. I assume it would command a lot more than that now.

I was a skinny, white 20-something when I lived there with a couple of flatmates, and we all held down white collar jobs in Wellington. The other two identical houses on the right of way were also rented to middle class working people. Porirua is generally a bit "rougher" that Wellington I guess, but I can't say I ever felt unsafe living there. I guess it's like anywhere - there are good and bad elements in just about every location.