Rental market in Pukekohe

[semaj_nil]

My friend is looking to buy a rental property in Pukekohe, just wondering if there is rental demand there, eg. how easy to rent it out?

[Natetrade]

My friend is looking to buy a rental property in Pukekohe, just wondering if there is rental demand there, eg. how easy to rent it out?

Can I ask why you would invest in Puke? The price point is very high meaning you have to commit a lot of capital (not too much lower than Auckland and far higher than Hamilton). Yields are relatively low. The distance to Auckland will always keep a lid on demand and capital values are always more sensitive in down times the further you are away from the Auckland CBD. Also there is a massive subdivision planned (5000 houses) - that is a lot of supply over the next decade which is surely going to moderate capital growth.

[semaj_nil]

Can I ask why you would invest in Puke? The price point is very high meaning you have to commit a lot of capital (not too much lower than Auckland and far higher than Hamilton). Yields are relatively low. The distance to Auckland will always keep a lid on demand and capital values are always more sensitive in down times the further you are away from the Auckland CBD. Also there is a massive subdivision planned (5000 houses) - that is a lot of supply over the next decade which is surely going to moderate capital growth.

Thanks that good info, just asking for a friend.

[Natetrade]

Thanks that good info, just asking for a friend.

No problem. I'm based in Puke so if your friend is also based in Puke and wants to catch-up on inv property matters in and around the Franklin area then I'm always happy to chew the fat.

[Frezzinghot]

I have also been thinking of Pukekohe. So where would you invest Nate. I also like Papakura which has had some solid growth in the last few years. The thing I like about puke is the amenities. But as you say still fairly expensive. So like for like, if it was a pick between papakura and puke, it would have to be papakura.

FH

[semaj_nil]

Thanks, I am based in Papakura and family member from overseas stumbled onto a property during visit to Puke, hence the question.

[Natetrade]

I have also been thinking of Pukekohe. So where would you invest Nate. I also like Papakura which has had some solid growth in the last few years. The thing I like about puke is the amenities. But as you say still fairly expensive. So like for like, if it was a pick between papakura and puke, it would have to be papakura.

FH

Hi - at least with Papakura, it is directly connected to the greater Auckland urban sprawl and it is also much closer to the large industrial employment bases in South and East Auckland. Large diversified employment areas will always create good demand for residents in areas that are relatively close - that's where Puke fails (it doesn't have a close diversified employment base. doesn;t matter so much in a growing market, but in a down turn you would think that values will suffer more)

I was tossing up between South Auckland and Hamilton and started a recent thread on that in this forum - it didn't get anywhere and turned into a mud slinging match about our ability to predict capital gain going forward.

So I agree, I think Papakura is better than Puke, although perhaps other South Auckland suburbs are better than Papakura due to being even closer to those employment bases.

[Frezzinghot]

Hi - at least with Papakura, it is directly connected to the greater Auckland urban sprawl and it is also much closer to the large industrial employment bases in South and East Auckland. Large diversified employment areas will always create good demand for residents in areas that are relatively close - that's where Puke fails (it doesn't have a close diversified employment base. doesn;t matter so much in a growing market, but in a down turn you would think that values will suffer more)

I was tossing up between South Auckland and Hamilton and started a recent thread on that in this forum - it didn't get anywhere and turned into a mud slinging match about our ability to predict capital gain going forward.

So I agree, I think Papakura is better than Puke, although perhaps other South Auckland suburbs are better than Papakura due to being even closer to those employment bases.

Yes I agree, also at the moment financing deals is hard to come by, so for us our budget is limited so we need to get as close to the CBD as possible with the money we have. Only positive at the moment is the competition is low so you have a better chance of nabbing a deal.

FH

[Frezzinghot]

Can I ask why you would invest in Puke? The price point is very high meaning you have to commit a lot of capital (not too much lower than Auckland and far higher than Hamilton). Yields are relatively low. The distance to Auckland will always keep a lid on demand and capital values are always more sensitive in down times the further you are away from the Auckland CBD. Also there is a massive subdivision planned (5000 houses) - that is a lot of supply over the next decade which is surely going to moderate capital growth.

You seem to have a pretty good handle on what is going on in Franklin. I tend to agree with all you have said.

[Frezzinghot]

Hi - at least with Papakura, it is directly connected to the greater Auckland urban sprawl and it is also much closer to the large industrial employment bases in South and East Auckland. Large diversified employment areas will always create good demand for residents in areas that are relatively close - that's where Puke fails (it doesn't have a close diversified employment base. doesn;t matter so much in a growing market, but in a down turn you would think that values will suffer more)

I was tossing up between South Auckland and Hamilton and started a recent thread on that in this forum - it didn't get anywhere and turned into a mud slinging match about our ability to predict capital gain going forward.

So I agree, I think Papakura is better than Puke, although perhaps other South Auckland suburbs are better than Papakura due to being even closer to those employment bases.

I too was looking in Hamilton but not too sure of what areas to buy in, house prices are so much cheaper than south auckland though.

[Natetrade]

I too was looking in Hamilton but not too sure of what areas to buy in, house prices are so much cheaper than south auckland though.

Anything around the uni and the main hospital is a good place to start. Hamilton (like South Auckland, and unlike Tauranga and the rest of regional NZ) has a good diversified employment base which is always a good thing for property investment. I went to a seminar a few weeks back and the mayor was saying that Hamilton will be the 2nd biggest city in NZ in 50 years time. If you are looking at long term buy and hold then Hamilton seems like an opportunity.

[Frezzinghot]

Anything around the uni and the main hospital is a good place to start. Hamilton (like South Auckland, and unlike Tauranga and the rest of regional NZ) has a good diversified employment base which is always a good thing for property investment. I went to a seminar a few weeks back and the mayor was saying that Hamilton will be the 2nd biggest city in NZ in 50 years time. If you are looking at long term buy and hold then Hamilton seems like an opportunity.

Yes I have liked the look of Hamilton for a long time, and have been thinking about its growth. Auckland is just so condensed with little land left and competition is so high. If I cannot find anything in my patch, i think that hamilton looks like the best bang for buck!