Question from Jo updated on 7th June 2019:
If you were wanting to buy an investment property outside of Auckland on a budget of around $400,000, where would you recommend looking? Would a new build rather than an existing house be a better option? And what are the pros and cons of units vs stand-alone houses?
Our expert Kris Pedersen responded:
Personally, I would look at either Wellington or Hamilton as a place to buy in. Wellington still has some growth left and Hamilton has good long term prospects with close proximity to Auckland.
You have more chance of getting a discount with an existing house over a new build as the majority of these tend to be sold at retail or close to it. However, there is also likely to be more maintenance so it depends if you are okay with more work or just want to buy and forget to an extent about it.
With stand-alone houses there may be more options of modifying the property over a unit and often you are likely to get more of a land component. However, it does depend on what your financial goals are as both can be good investments.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz