Always sunny here in the Bays and the world of property investment seems to be no different. While there is a typical seasonal lull in the number of properties on the market at the moment, our clients are still securing some great deals.
The word on the ground is that the rental shortage is getting worse and new rentals attract at least 15-20 enquiries in the first hour of being listed.
Rents in Flaxmere increased 17% last year and Flaxmere was named as New Zealand's 4th fastest growing in value suburb over the last 18 months. A few years ago it was considered for hardened investors only but now its first home-buyer-ville. As an ex-Aucklander, it all seems a bit deja-vu to me. I'm thinking Otara and Manurewa pre 2007. Can any of you remember when Otara houses cost $168K and yielded 10%? Now you're grateful if you can squeeze a 5.5-6% yield in those areas and the first home buyers are lining up.
Flaxmere has already said goodbye to the heady days of 10% yields my friends - but come on down and secure yourself a solid 7-8% currently and you may even be able to subdivide or add a relocatable at a later date. Can't promise the same this time next year though so don't wait!