The number of properties sold in Jan 2020 increased by 9.7% year-on-years, which is the highest number of properties sold in the month of Jan since 2016.The median price has also gone up 8.7% year-on-year. The low interest rates seem to be allowing buyers to be active across all segments of the market, right from first home buyers, investors and luxury home buyers. Two recent examples of incredible prices being paid for Auckland property are below:
With the Unitary plan making it easier for Aucklanders to create equity by subdividing their backyards, there is a renewed interest in development sites. Investors are quite active in the South and West Auckland area, looking for sites with development potential.
With the extension of infrastructure and motorways, some of the furthest Auckland suburbs like Warkworth (in the north) & Drury (in the south) are now getting a lot of attention but still present opportunities to get returns of 5% to 6.5% gross yields.
The recent world events around the Coronavirus have not shown any visible signs of a slowdown but it is early days and the direction of the market will depend on long the headlines continue.
With an increasing population and low interest rates (possibly lower soon), the strong demand from buyers seems unlikely to change in the short term. So, this is a good time to get into the Auckland property investment market to either build some equity or maintain cashflow with the low interest rates.
Here are our top strategies on how to increase cash-flow and/or build equity on your next investment property:
If you are interested to find out which strategy is a better fit to achieve your property goals, please get in touch!
Right as the CCCFA changes were starting to bite, an investor asked us to market their 3-unit property in Rotorua. We used our investment experience to highlight the upside potential for the incoming buyer and marketed it to our exclusive database of investors, generated a good result. Read More…
In part 2, we look at strategies to navigate through, and ultimately profit from inflationary periods. Read More…