first investment property

[tjay83]

hello,

I am looking for an investment property in new zealand maximum $600.000.
I was thinking of wellington but the prices increased dramatically recently. Do you think the wellington prices will still rise ? or is it at max ?

shall I consider smaller cities like napier, dunedin, etc ? or Christchurch

Thank you

[donna]

Hi tjay83,

Where do you live?

What research have you done so far?

Are you new to property investment? If so you're better off learning the ropes etc in the country you reside and ideally not far from where you're located. But there's lots of recommendations - first we need more background on you and your current position to adequately respond given you're new to PropertyTalk forums.

cheers,

Donna

[absoluteproperty]

In a market with questionable fundimentals long term, I would keep in mind what your intentions are, specifically if you are looking to sell if interest rates begin to go up or once you get capital appreciation, or prices begin to fall. Wellington is a far less liquid market than Auckland, but more liquid than some of the other smaller centers.

Prices have appreciated rapidly in a city not accustomed to prices rising and I would suggest a lot of the buying is taking place by out of towers, looking for new opportunities in a drained Auckland, swamped and falling HK market and overpriced Chinese markets.

Depending on your fundimentals - if you are looking to buy and hold for 10+ years, and market activity does not matter to you in that time then Wellington might be great. I

If at some point you may need a quick exit, a medium term and currently flat Auckland market with ongoing growth fundimentals may be better - but, as usual, once determining where you want to buy the research on individual properties will be critical to success.