Auckland apartment investing

Rebecca asks:
(updated on Wednesday, February 27th 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 Experts Answer:

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!



Heartland Bank - Online 1.99
The Co-operative Bank - First Home Special 2.09
HSBC Special 2.25
ICBC 2.25
HSBC Premier 2.25
Kainga Ora - First Home Buyer Special 2.25
AIA 2.29
TSB Special 2.29
The Co-operative Bank - Owner Occ 2.29
SBS Bank Special 2.29
Westpac Special 2.29
Heartland Bank - Online 2.35
ICBC 2.35
HSBC Premier 2.35
TSB Special 2.49
SBS Bank Special 2.49
The Co-operative Bank - Owner Occ 2.59
BNZ - Classic 2.59
ASB Bank 2.59
AIA 2.59
China Construction Bank Special 2.65
Kiwibank Special 2.65
HSBC Premier 2.89
TSB Special 2.99
AIA 2.99
Westpac Special 2.99
ICBC 2.99
ASB Bank 2.99
China Construction Bank Special 2.99
BNZ - Classic 2.99
SBS Bank Special 3.19
Kiwibank Special 3.19
The Co-operative Bank - Owner Occ 3.19
Heartland Bank - Online 2.50
Resimac 3.39
Kiwibank - Offset 3.40
Kiwibank Special 3.40
Kiwibank 3.40
Bluestone 3.49
Select Home Loans 3.49
ICBC 3.69
The Co-operative Bank - Standard 4.40
The Co-operative Bank - Owner Occ 4.40
Kainga Ora 4.43