Where to invest?
Question from Donna updated on 14th December 2015:
My husband and I are looking at getting on the property investment ladder. We own our home in Mt Eden and there is currently about $800k in equity in it. We want to take advantage of this and invest in a residential rental property.
We were wondering where some of the best places are to invest in at the moment? We would prefer to keep to Auckland and have heard that areas like Papakura and Manurewa are worth having a look at. But we were also wondering about the likes of Hamilton and Tauranga?
Our expert Kris Pedersen responded:
Hamilton and Tauranga have actually heated up a fair bit over the last 12 months and there is quite a bit of new development going on, especially in Tauranga. I expect that there will continue to be a fair bit of growth in both areas - as the introduction of the 30% deposit requirement for investing in Auckland will push more investment into these areas.
In regards to the Auckland market, where to invest depends on what you are after. The areas you have mentioned have always been favoured by investors and are expected to have strong population growth moving forward. But it is worth spending some time looking at the Unitary Plan as having an understanding of what it entails might give you an idea about some good investment locations.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz