As of May 2015, with rental housing costing about 33% of Auckland incomes, it is no wonder people are choosing to relocate elsewhere. Tokoroa is a market that is affordable and offers great yields, so when local investor Wayne Dickson asked us if we'd like to expand there, we jumped at the opportunity.
We have helped dozens of investors create wealth through property and with Wayne joining our team we look forward to even more great results for our investors.
Tokoroa once had a reputation as a rough town but that has changed. The town boasts good employment and statistically Tokoroa is safer than our big cities. There is great cashflow there for investors too.
Because Tokoroa is a new market for iFindProperty and many of you will not be familiar with this central North Island town, we hope you find this resource beneficial; if so please contact Wayne to get onto our hotlist for Tokoroa properties going forward.
Tokoroa is the base of the Kinleith pulp & paper mill and the town is surrounded by a mix of forestry and farming operations. There is an increasing light industry sector as well as a sustainable retail sector, so much so that new stores for Countdown and New World were recently completed, showing the confidence these large retailers have in Tokoroa.
Dairy giant Fonterra Co-op’s second largest cheese factory is just 10 minutes north of Tokoroa and in late 2014 they began a $300M expansion which will add new employment for Tokoroa based residents.
A rail siding is being built in Tokoroa which will feed directly to the Tauranga Port. This will bring jobs for local people and opportunities for businesses with importing and exporting made much easier thanks to the proactive work from local council and businesses working together.
The four main industries that contribute significant amounts to the annual GDP of more than NZ $2.3B are tourism, forestry, geothermal and agribusiness. Tokoroa has two of these right at its doorstep with forestry and agribusiness complimenting each other.
Private Sector Investment
There is a lot happening in the Tokoroa area that has added to the renewed confidence in the future for locals and investors alike:
- Lichfield Cheese Factory: In late 2014 a $300M expansion began which will provide 50 full-time jobs once complete. There are up to 800 jobs being created in the upgrade which is an 18 month project.
- Farming increasing: There is a massive amount of forestry land around Tokoroa, about a fifth of it has been converted to farming. This adds to the region with employment opportunities created by new families arriving and business opportunities needed to service the farming community.
- Light Industry increasing: There are a number of light industrial businesses in Tokoroa with several expanding over recent years; we have noticed new workshops and buildings popping up throughout the area.
- New investment from big names: Countdown & New World have invested in newer stores.
- Diverse industries: A complimentary mix of forestry, farming and engineering industries supported by high quality water, gas and electricity.
- Business retention and attraction: Commercially sympathetic Council along with a user-friendly district plan and planning process.
- Primary, Secondary & Tertiary training: All levels of schooling are well catered for. Waiariki Polytechnic and Te Wananga o Aotearoa provide a number of training courses delivered in Tokoroa.
A new welding course has begun at the Tokoroa Trade Training Centre and this will see trainees prepare for the local engineering market. This course compliments the existing automotive engineering course. These courses are filled with enthusiastic students who are eager to contribute to the local sector productivity.
$5M has been spent by council investing in local projects such as the rail siding to Tauranga Port, planning for the Tokoroa town redevelopment, upgrading pensioner housing, upgrading the popular Cougar Park mountain bike track and upgrading the clubrooms at the Motocross track in Tokoroa.
High speed ultra fast broadband saw Tokoroa as one of the first towns to have their network upgraded, with most of the town close to completion. This will be a huge bonus for residents, local businesses and companies wishing to take advantage of the cheaper real estate by relocating from elsewhere.
Tokoroa Hospital has undergone recent expansion whereby a massive medical centre has also been established on the same campus. This is now a one stop shop with the public hospital services operating in wards 1 & 2 and the private medical centre operating in wards 3 & 4 with GP’s, a laboratory, midwives, physio, chiropractor, Plunket and a chemist.
A Passionate and committed Mayor – Neil Sinclair
“Committing to supporting our economic development and growth several years ago was a turning point for our Council. It is a turning point that makes our small rural council a leader in driving business growth, collaborating with business leaders and getting new industry across the line.
Tokoroa and the South Waikato lie at the very heart of the North Island of New Zealand. We are serviced by both road and rail, with links to both Auckland and Tauranga ports. Our central position and strong transport links underpin other advantages of doing business in the South Waikato. We have industrial and business zoned land available for purchase, are business friendly, we have an exceptional workforce and good quality rural living. From our strong forestry and farming heritage has emerged an equally strong and successful engineering sector. And it was from that sector that the Trade Training Centre was born. Growth, success and expansion has dominated this training facility, indeed last year eight of the graduates got jobs in the district at local firms; retaining our youth in our district and providing local business with a much needed workforce.
We believe that one of the best ways to ensure our district prospers and our community thrives is by focusing on economic development and district promotion. Our commitment to growing businesses and attracting new industry has been cemented in the past year through the development of a Business Case Management role. If you are contemplating setting up a new business in the South Waikato, I can assure you that we are a business friendly Council and with our Business Case Manager you will be walked through our regulatory processes making planning, building and other regulatory detail seamless and smooth.
In the South Waikato you really can own and manage a successful business, while enjoying a rural lifestyle, excellent services and a safe family environment. A great place to live, relax, enjoy, and conduct business.
iFindProperty in Tokoroa
Wayne Dickson recently joined the iFP team. Wayne was born and raised in Tokoroa and is a long-time investor in the Tokoroa market. His wife runs an independent property management company in the town, which they set up as investors, for investors.
With Wayne’s vast experience, extensive local knowledge and strong networks, iFindProperty is now able to locate, analyse and bring you investment opportunities in Tokoroa as soon as they become available.
We are compiling a hotlist of investors who are interested in purchasing in Tokoroa and going forward any investor who registers for that list will receive advance notice of Tokoroa properties.
If you would like to speak directly with Wayne about Tokoroa opportunities or register for the Tokoroa investor’s hotlist, please get in touch via email.
What works: Investment Strategies for Tokoroa
Wayne is a successful long-term investor in Tokoroa and below are some of his strategies on how to invest in the town:
- Buy and Hold - "In Tokoroa it is easy to buy a property with positive cash flow... on paper. Making sure it's the right property in the right area to have a smooth experience as a landlord takes a bit more local knowledge. There is a large supply of long term tenants and a shortage of quality rental houses. Tokoroa is a great market to invest in and can be summed up as ‘quality tenants will pay for quality housing’."
- Renovations - "There is a good supply of properties that can easily be picked up after being let go by out-of-town investors and substandard property management. There are gains to be made by doing a cosmetic makeover. Rent increases and value increases easily lead to an increase in the quality of your tenant applicants."
- Adding Value - "There are many properties that are begging to have value added to increase the income stream and value of the site."
Similar to Rotorua, often the returns offered in Tokoroa can make the city look like a city of gold to a newcomer property investor. The city is full of great tenants and properties, however there are also a number of problem properties, problem tenants and lack lustre property managers that can make your property investment life a nightmare....and provide a great opportunity to buy well.