Opportunities exist thanks to a proactive council along with very affordable land prices. Council is very encouraging and has arranged
access to a free Business Support Service, which can access government funding, business mentors and navigate consent processes with ease.
There is also a lot of industrial land being developed, which will bring new jobs and new opportunities. At the south end of Tokoroa there
is significant industrial expansion including a Milk Powder plant and several other businesses setting up on this valuable land.
There is a massive medical centre with multiple services offered. This is attached to the Hospital and takes up two wards, then there is the
ED facilities plus two wards. We also have numerous social services including Raukawa (local Iwi) who offer a range of services plus TCOSS
and SWPIC who both offer a complimentary range of services.
Ten minutes north of Tokoroa there is the largest cheese factory (Fonterra) in the Southern Hemisphere, which has recently undergone a $380
million expansion. Tokoroa is located on State Highway 1 and has a core rail link to Port of Tauranga - with an inland container port
At the south end of Tokoroa there is a new milk powder factory (completion due late 2023) where it is expected to produce 45,000 tonnes of
milk powder each year. It is a highly efficient and sophisticated factory, which provides a number of employment opportunities locally.
There are numerous opportunities in Tokoroa and there are many satisfied clients who were very surprised by how much the town had to offer
Stand-alone homes and units are the standard in Tokoroa, and similar to Rotorua, the returns offered in Tokoroa can make the city look like a
city of gold to a newcomer property investor. The town has plenty of great tenants and properties, however there are also a number of
problem properties, problem tenants and poor property managers that can make your property investment life a nightmare... OR provide a
great opportunity to buy well. Using trusted experts will lower your risk and maximize your potential.
Numerous people have relocated to Tokoroa over the last few years due to affordability meaning there is a lack of available housing. This
has lifted prices and rents in Tokoroa.
Common mistakes when investing in Tokoroa, according to Wayne Dickson:
Location: Some unfortunate investors have bought without researching the area and it is a lot harder to fix the location than it is to fix
the house! These properties can be difficult to attract and then retain good tenants.
Types of housing: Some investors have been wooed by the appeal of high yields, sometimes with unappealing units with high "potential
rents". Knowing the type of housing that works and what choice is available in your chosen area is essential.
Many investors leave money on the table by not understanding what they could achieve with their property by making it more appealing to
quality tenants, often without spending very much. In a lower-cost area investors can be reluctant to spend money on their properties.
Site unseen purchases: Some investors have really lost big by buying from an agent who is not local or who works for the vendor. If you are
not in Tokoroa and familiar with the market, you need to use someone who is on your side.
Working with a Buyers Agency like iFindProperty is a good way to avoid making mistakes. We have worked
for investors new to Tokoroa, many who see the property for the first time after settlement. We have never had an unhappy client, and with
Wayne's partner Fiona running our preferred Property Management business, we plan for long
term relationships with our clients.
Land Use and Subdivision
Currently, there are very few empty sections in town with several new houses and relocated houses appearing. The most recent housing is a
subdivision in East Tokoroa with around 20 new homes built. There is another planned subdivision at the South end of town with about 25
sections planned in stage 1 and several more in future planned stages. I am aware of a number of people who will buy these sections once
they become available.
Current rules allow that to subdivide in Tokoroa, each resulting site must have a net size of 450m2. Resource consent would be required to
subdivide below 450m2.
- Development fees to subdivide are $3,689, not including connection services and any surveyor fees.
- Existing residential can have a second dwelling added without subdivision, as long as building consents are approved.
- There are numerous properties that will suit another dwelling AND infill housing in Tokoroa has become very desirable.
*Rules may change at any time, please do your own research when considering a subdivision