Apartment "next best thing"
Question from Trish updated on 24th September 2014:
Hi, we are looking at a couple of properties in Auckland and Christchurch. Both are apartments still in construction. They both have had rental appraisals done and I am wondering if we can get our own rental appraisal done independently? We are new to apartments and are looking for a little guidance on what to look out for. We have always liked a house with land but with the house prices in Auckland apartments seem to be the next best thing.
Our expert Krister Samuel responded:
The apartment market in Christchurch and Auckland are both enjoying the benefits of surging accommodation demand and current full occupancy. A number of new apartments being sold off the plan are all of a sudden looking very attractive from an investment perspective. So you are right to be taking a look. Checking a major letting websites (like Trade Me) is a good indicator of the current market rent level. Keep in mind that tenants will pay a generous premium to live in a brand new apartment with a new furniture pack. Also the appraisal provided has likely taken into consideration the current climate of steadily rising rents. Many experienced house and land investors, like you, are waking up to the benefits of apartment investment. They are spending less time and money on management and maintenance while receiving far more attractive rental returns.
If you or any of the readers have a rental appraisal or rental apartment which you would like the price double checked on then feel free to touch base.