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  1. #21
    Join Date
    Mar 2007
    Location
    Auckland
    Posts
    2,602

    Default

    About four years ago I did several trips and covered most of the country trying to pick a good out-of-Auckland place to invest.
    Took me a year, more or less.

    The only places I liked were Tauranga (port) Feilding (Massy uni, better weather than PN) and New Plymouth (oil exploration).
    Not so sure about New Plymouth now, as the oil thing has tanked (pun!).

    Adding to the list of red flags above I would also reject any town that has an op shop right in the main street - sign of low commercial rents and desperate landlords.

    As it turned out, there was a hiccup in the market around then with the introduction of the 20% LVR rule, and I took the opportunity that presented to buy in Pukekohe.

    My opinion is that those rushing to buy in Rotorua will in time regret it. Always has been a low-income town with a lot of subteranian local political infighting that holds the place back.
    Last edited by flyernzl; 29-06-2017 at 04:53 AM.

  2. #22
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    7,262

    Default

    Adding to the list of red flags above I would also reject any town that has an op shop right in the main street - sign of low commercial rents and desperate landlords.
    flyernzl, agree with all you say except that part.

    These shops make small fortunes. I had the a charity (shouldn't mention their name) as a tenant for 6 years in my shop in Papakura. There was a letter on the wall stating how much the shops in Auckland had made. It was a bit over a million.

    I also have a friend who volunteers 1 day a week in another charity shop on the shore. That shop clears $50k per month. So that is net of their costs.

    They get all their stock for free and a lot of labour for free too. So they make far more than people would realise.

    And as for them not being in the main street: You'll find them everywhere just now, including the swanky suburbs of all major cities.

  3. #23

    Default

    I would go for Palmey, where average houses price is still affordable.

  4. #24

    Default

    Quote Originally Posted by Rosco View Post
    As for other regions, you are looking for cashflow. So start by checking information that is key for tenants
    - population growth or decline
    - average wage
    - % unemployed
    - What employment opportunities are there, and beware of one industry
    - Talk to property managers about tenant demand
    Where do you get your stats to base your decisions on - do statistics NZ publish this data to such detail?

  5. #25
    Join Date
    Mar 2007
    Posts
    106

    Default

    Stick to towns /cities with about 100k population...otherwise the renter pool get shallow. Rotorua is probably over-cooked now...it was a good time about 2 year ago. Remember that regional prices went up dramatically in 2005-2007, then crashed back and did not recover till 2015-16

  6. #26
    Join Date
    Sep 2014
    Posts
    432

    Default

    Quote Originally Posted by Zorwarrior View Post
    Remember that regions prices went up dramatically in 2005-2007, then crashed back and did not recover till 2015-16
    I think you mean some regions didn't recover till 2015-16. Others only dropped slightly (not "crashed") and recovered quickly and have been increasing steadily since the early 2010s even if not the spectacular gains of Auckland/Tauranga et al. Well down in this part of the country anyway.

    Craig


 

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