Apartment strategy risks

Andrew asks:
(updated on Wednesday, September 16th 2020)

I'm interested in getting a start on the property ladder. I was thinking about investing in an Auckland CBD apartment and putting it on Airbnb. But it seems that the Covid-19 crisis has dealt a blow to that strategy. Do you think that is the case? Or do you think that it could be worth pursuing it a bit further down the track?

 

 

 

 

Our Experts Answer:

 

I’d be careful of this strategy at the moment as we currently have no idea on timeframes for when the boarders will open up again. I do expect to see some good buying opportunities come up in the apartment market going forward. But in the short term in this segment of the market, I believe we may see both prices and rents pull back a bit. So you will need to be careful in how you approach it.

Heartland Bank - Online 1.85
HSBC Premier 2.19
HSBC Special 2.25
Kainga Ora - First Home Buyer Special 2.25
China Construction Bank Special 2.65
Kainga Ora 2.88
SBS Bank Special 3.15
TSB Special 3.29
The Co-operative Bank - First Home Special 3.29
ICBC 3.29
Select Home Loans 3.34
Heartland Bank - Online 2.35
HSBC Premier 2.45
China Construction Bank Special 2.65
Select Home Loans 2.99
Kainga Ora 3.28
SBS Bank Special 3.69
ICBC 3.85
Resimac 3.89
Bluestone 3.89
TSB Special 3.94
Wairarapa Building Society 4.05
China Construction Bank Special 2.99
HSBC Premier 3.19
Select Home Loans 3.54
Kainga Ora 4.22
Bluestone 4.29
Resimac 4.29
SBS Bank Special 4.49
TSB Special 4.70
ICBC 4.79
The Co-operative Bank - Owner Occ 4.85
Westpac Special 4.95
ANZ Blueprint to Build 2.03
Heartland Bank - Online 2.25
ASB Back My Build 2.29
Resimac 3.39
Select Home Loans 3.49
Bluestone 3.74
ICBC 4.15
Kiwibank Special 4.25
Kiwibank 4.25
Kiwibank - Offset 4.25
Kainga Ora 4.43