Though rents are rising in Wellington & Auckland, investors aren’t making a mint as a result.
• Rising rents may cause pain for tenants in Wellington & Auckland but soaring house prices also hit investors.
• House price rises in Wellington, Christchurch & Dunedin were less spectacular while still outstripping rental growth.
• Crockers calculates that rental returns for investors – yearly rental income divided by house price – have weakened since 2015.
• The avg yield to investors in Auckland eased from 4.5% to 3.4%, while in Wellington, it eased from 4.9% to 4.6% since 2012.
• Meanwhile, a survey shows that investor interest in apartments has risen to its highest point, while interest in commercial property has softened in Auckland.
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