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  1. #1
    Join Date
    Aug 2010
    Posts
    357

    Default Investment options

    What will be the best strategy to get good yields in good locations. Dunedin, Wanganui and Rotorua are some of areas I am looking at.
    Auckland has very low yields so looking at around 7% yields.
    For those that invest outside of the city , how are you finding the whole experience?
    Obviously it will be more expensive to maintain being out of town, so the yields will be lower after purchase.

    I have enough deposit and double that amount in equity.


    Other option is to buy a sub dividable property in say Otara and add another dwelling to improve yields.
    Last edited by donna; 18-08-2018 at 02:12 PM.

  2. #2

    Default

    There’s a listing in cannons creek that I’d take a look at 3x3br units on 1150m2 at 161-165 Bedford st. subdividable allowing at least one house in back yard. Relatively flat with good services access. offers over $620k - in all likelihood it will go for $650k+

    Current rent from memory is $830/wk a yield of 6.6 gross, in all reality the rent could immediately be increased to $300/wk each irrespective of the internal condition delivering high 7 yield and with internal paint, carpet, heat pumps and insulation an investment of $10k/unit rent could be easily $380/wk 8.7 gross or at a pinch $400/wk a yield over 9% with equity potential by developing the backyard.

  3. #3
    Join Date
    Jun 2013
    Posts
    2,067

    Default

    Quote Originally Posted by Don't believe the Hype View Post
    Current rent from memory is $830/wk a yield of 6.6 gross, in all reality the rent could immediately be increased to $300/wk each irrespective of the internal condition delivering high 7 yield
    Why has the current owner not already done this?

  4. #4

    Default

    It’s an interesting situation, rents have risen fast and I’d guess many LL’s have not noticed the increase or like in a number of my tenancies we’re raised rents $20/wk the last few years but market rent has risen $100. We could if we needed to put the rent to market level but I think increases of that much put too much strain on existing tenants.

    The type of tenant is changing in the area. By taking vacant possession you can advertise at the new level and get tenants that can afford the price.

    My most recent new tenancy in the next street 2months back was at $380/wk for a similar unit with the addition of insulation and a heat pump and new carpet.
    Last edited by Don't believe the Hype; 13-08-2018 at 10:30 AM.

  5. #5

    Default

    Actually - just checked my records, the rent on the most recent unit was $395/wk.

  6. #6
    Join Date
    Mar 2013
    Location
    Auckland
    Posts
    1,563

    Default

    If you go for Rotorua, there's a woman in Graeme's FB group who has just started offering tailored property management. So she'll do just the inspections if you want to manage everything else yourself.
    My blog. From personal experience.
    http://statehousinginnz.wordpress.com/

  7. #7
    Join Date
    Aug 2010
    Posts
    357

    Default

    Thanks Sid
    Have you invested there , how are you finding it ?

    Are you actively buying now ?


 

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