Tokoroa is within an hour’s drive of Hamilton, Tauranga, Rotorua and Taupō, which is why so many people see Tokoroa as an affordable choice. With every other nearby town more expensive, we have seen an ongoing surge of first home buyers, investors and people downsizing now buying in Tokoroa. The town once had a reputation as a rough town, but that has changed long ago — the town boasts good employment and statistically Tokoroa is safer than our big cities.
Opportunities exist thanks to a proactive council along with very affordable land prices. Council is 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 a new milk powder plant and several other businesses setting up on this valuable land. Another business park is currently being developed.
Ten minutes north of Tokoroa is the largest cheese factory (Fonterra) in the Southern Hemisphere, which has recently undergone a $380 million expansion. Tokoroa sits on State Highway 1 and has a core rail link to the Port of Tauranga — with an inland container port being established. Browning Street has had significant commercial development with nearly all sites sold; businesses are relocating into town, creating new jobs. Toi Ohomai’s training centre at the north end of town focuses on the trades the region needs.
Stand-alone homes and units are the standard in Tokoroa, and similar to Rotorua, the returns offered can make the city look like a city of gold to a newcomer property investor. There are plenty of great tenants and properties — but there are also a number of problem properties, problem tenants and poor property managers that can make your investment life a nightmare, or provide a great opportunity to buy well. Using trusted local experts will lower your risk and maximise your potential.
Numerous people have relocated to Tokoroa over recent years due to affordability, meaning there is a lack of available housing, which has lifted prices and rents. Two lifestyle block subdivisions are currently being developed, and a large 150-lot subdivision is in the early stages at the south end of the town. Existing properties with large sections also offer scope for a second dwelling on site. The cost of living is one driver of relocation; another is that the community is friendly, with many clubs and interests — and Tokoroa is the hub of the South Waikato.
Common mistakes Wayne sees: buying without researching the location (a lot harder to fix the location than the house); being wooed by high “potential” yields on unappealing units; and site-unseen purchases through agents who work for the vendor rather than for you. Working with a Buyers Agency like iFindProperty — with Wayne’s partner Fiona running our preferred Property Management business — is a good way to avoid those traps and plan for long-term success.
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