Tokoroa Market Update

by Wayne Dickson on Oct 09, 2018
Article appears under: Local Markets, About Property Investment, Tokoroa, Property Management, The Numbers

Wow, where has the time gone? We nearly through 2018 and the last 12 months has flown by. A fair bit has changed and I have a snapshot of where we are in the market. The new CVs come out in November and the expectation is for a massive increase compared with the 2015 CV we currently have. 

Houses SOLD  
During the past 12 months there have been 422 sales in Tokoroa. Sale prices have been as high as 3 times the CV (2015 CV) with many sales being twice the CV value. At the time of writing this there are only 45 houses listed for sale in Tokoroa. My clients have done very well by letting me study the market, finding opportunity that others have over-looked and securing quality properties. My expertise & experience is my clients’ advantage above the other buyers in the market.  

House Sale Successes 
I have had some great success with clients after hunting high and low for properties that are a great fit. I have been able to get things to work for houses ranging in price from $175,000 up to $357,000. We have had houses where work required has varied from painting, bathroom work, landscaping, insulation & heating and adding extra bedrooms. By completing the required work, rental yields have increased and values have also increased too.

Rentals 
In Tokoroa, rent for a nice 3-bedroom property remains consistent at $220 - $280 p/w with an executive type property renting for around $300 - $350 p/w. A nice 4 bedroom property will generally attract a rent of around $300 - $400 p/w. 1 and 2 bedroom flats are in good demand and will now rent for around $160 and $190 p/w respectively. As I write this there are only 2 Tokoroa rentals on trademe, both in undesirable locations, the locations we keep you away from.

Each week Fiona at Rentassured Tokoroa has around 10 enquires from willing tenants looking for a place to rent. About half of those enquiries are from good people and we do our best to find a property for them when we can. The common theme we find is that good tenants are happy to pay a fair market rent, which has increased a fair bit over the last few years. The toughest challenge we face is the winter cold, where decent heating and an insulated house is the best way to keep tenants happy and paying.

Developments
The redevelopment of our main street has just been signed off by council. This involves the investment of $4 million into Leith Place, which will be innovative and eye-catching for years to come.     

To discuss your next investment opportunity or to find out more about what Tokoroa has to offer get in touch with me today.