Residential Rental Property Current Yields - Help Please :)

[Lizard]

Would like to have any information on typical current yields for residential rental property transactions? Particularly interested in suburban Wgtn area, low maintenance and assume appropriately rented. TIA

[Arbitrage]

Try the Dept of Building and Housing website for the latest rentals

http://www.dbh.govt.nz/market-rent?Region=8

[OldRider]

Have you seen this article
http://www.stuff.co.nz/4275367a13.html

[Lizard]

Thanks, the rent information is pretty easy to get. I really need some more idea on yields. The Stuff article helps, but I'm not convinced that 4% yield is current reality?!?

Any comments from current property owners or likely investors on the kind of yields they would be willing to transact on this type of property as either a potential buyer or seller would be useful. Real estate agents seem to give out different guidelines to buyers and sellers, so just interested in getting some more opinions.

[Jess9]

6.1% gross on a recent buy in PNTH, in a quality area.

[Serpie]

Anything over 6% on current valuations is pretty good.
I'm getting 6.1% on a couple on the city fringe in ChCh, but that's based on purchase price of 18 months ago.
I'm getting 13% yield, based upon purchase price on another one, but if you use the current valuation it drops to 5.1%.
I wouldn't consider buying rentals at the moment because of the low yields. 4% wouldn't surprise me in some areas.

[David Hardman]

3 bedroom, brick and tile house in Takapuna, Auckland

Last years rent - $23,400
Paid $265k in 2002
Current value - $560-580k

Current yield around 4.1%

Selling the property early next year.

[Arbitrage]

Current yield on city fringe apartments in auckland is hovering around 4.5-5.5%. This should improve as prices stabilise and rents increase over the next few years.

[Lizard]

Thanks for the comments. All very helpful.

[Jess9]

Rents to increase on the radio today - about 6% pa for the next several years. Broad brush of co****, but of some comfort to landlords, especially if it happens in your street ; )