Where to buy?

Our Experts Answer:

Hi Sam, you live in Auckland so definitely stay in the Auckland area for investing. We are only halfway into the current property boom and property values have yet to double from October 2012 (use the CV as a bench mark). I anticipate there will be a big catch up in rents coming in desirable inner suburb areas due to the peak 10 year immigration trends recorded recently.
If you are happy with renting a two-dedroom unit in Remuera for $280 per week then I suggest you stay there because you will find the average rentals for the area should be around $400 per week.
If you are looking for the "capital gains" orientated property then stay within Auckland central suburbs and avoid the lower socio-economic areas, which are usually more for immediate cashflow. If you take action quickly your $450,000 can still get you into good parts of inner central suburbs of Auckland and still be cash flow neutral. Remember long-term massive wealth is achieved through capital growth, cashflow however will buy you a cup of coffee and a holiday.