Auckland apartment investing
Question from Rebecca updated on 27th February 2019:
I am interested in investing in an apartment in Auckland because I have read the returns are better (than those from houses). Is that true? I have a deposit of about $50,000 and a decent income. Is that enough to purchase an apartment somewhere in Auckland? If so, what areas would you recommend to look in?
Our expert Aaron Tunstall responded:
Generally speaking, the returns for apartments are better than houses. We find many of our landlords buying multiple apartments to off-set a cash flow negative house. Yields have also improved over the past few months.
But a deposit of $50,000 would be difficult for an owner occupier to purchase with, let alone an investor. I would certainly make contact with a good mortgage broker who understands apartment lending to calculate your lending ability before approaching any bank. If you do not already know a mortgage broker I can put you in touch with one. Different banks have different requirements and they are constantly changing.
I have always liked Auckland central. When compared to other large cities we still have relatively low numbers of apartments. Owner occupiers now see it as an attractive option which is also adding to the demand. Good luck!
Aaron Tunstall is the owner of Impression Real Estate, specializing in sales, building and property management.