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NZ Property Selection

Property Selection

Consider these factors before you choose an investment property:

whichcity

Which city?

Stick to main centres – They have more stable economies, so you’re less likely to see volatility in property prices. You may also wish to spread your investments across different markets,
by purchasing a rental property away from your family home.

neworused

New or used?

Recent mortgage restrictions make
buying brand new properties easier, with lower deposit requirements. New
properties typically rent faster, have lower maintenance requirements, and have
more chattels to depreciate.

Tip:

Read more about New vs Old property
here.

whichsuburb

Which suburb?

Some areas experience better
growth (capital gains), while others have higher yields. Usually cheaper suburbs
will be good for cash flow, but more
expensive neighbourhoods often earn
you more in the long run.

Tip:

Read more about Yield & Growth
here.

Statistics - Top Performing Areas

*Last updated - 03 / 03 / 2017

Auckland

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Suburb Median Rent Median Value Gross Yield Growth %
Top 3 suburbs for Yields
Otahuhu $495 $691000 3.7% 14.8%
Newmarket $910 $1372000 3.4% 8.3%
Penrose/Mt Wellington South $540 $829000 3.4% 11.1%
Top 3 suburbs for Growth
Remuera $720 $1811000 2.1% 18.1%
Westmere/Surrey Crescent $795 $1695000 2.5% 17.2%
Kohimarama $695 $1540000 2.3% 17.2%

*The data shows values for 3 bed houses.

Christchurch

dropdown_1
Suburb Median Rent Median Value Gross Yield Growth %
Top 3 suburbs for Yields
Richmond/Avonside $390 $352000 5.8% 2.0%
Sydenham/Waltham $420 $395000 5.5% 2.3%
Burwood/Dallington/Avondale $415 $392000 5.5% 2.1%
Top 3 suburbs for Growth
St Albans East/Edgeware $422 $538000 4.1% 8.5%
Redcliffs/Sumner $462 $601000 4.0% 4.5%
Avon Loop/Christchurch East $420 $643000 3.4% 4.4%

*The data shows values for 3 bed houses.

Wellington

dropdown_1
Suburb Median Rent Median Value Gross Yield Growth %
Top 3 suburbs for Yields
Karori South/Makara $505 $591000 4.4% 18.2%
Brooklyn $630 $749000 4.4% 23.6%
Kilbirnie/Lyall Bay $600 $714000 4.4% 21%
Top 3 suburbs for Growth
Johnsonville/Newlands $492 $570000 4.5% 29.8%
Tawa/Grenada North $440 $511000 4.5% 27.4%
Ngaio/Kaiwharawhara/Wilton $542 $704000 4.0% 24.6%

*The data shows values for 3 bed houses.

Property Types

ps_1

Apartments

Usually earn good yields so can be cash flow positive i.e. Income is higher than expenses. They will give you very little capital gains though.

ps_2

Townhouses

Can either be attached, meaning they share a wall with a neighbour, or stand-alone, which is preferable. Townhouses can offer a good balance between yield and growth, so make a great investment.

ps_3

Houses

Your best chance for high capital gains. Big sections don’t necessarily command much more rental income though, so yield can be quite low.