Investment prospects in Hamilton

Dave asks:
(updated on Friday, May 08th 2020)

We are thinking of buying a four bed four bath new build in Hamilton East, close to the University. We have been told that tenants are available for 12-month lease at $250 per room so $1,000 gross per week. The purchase price is mid $600s. Our research indicates that Hamilton has good capital growth prospects and with a gross rental return of around 8% it looks like a sound deal. We would appreciate any feedback.

 

 

 

Our Experts Answer:

As a quick look that return looks attractive. However, I’d caution you to make sure that it isn't inflated in any way as you're obviously going to want the property to continue to perform once you are past the 12-month mark. Hamilton does have good long-term growth prospects. But do some more due diligence to ensure that the stated return is likely to continue to play out over the long term.

 

 

 

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