Final bullet into a dropping property bull?

[ynot]

Hi JB and others on this thread. I notice JB you have an interest in Invercargill / Bluff property.
I am also interested in the real estate market down there, just how significant is the oil exploration regards property values? Is the market still humming along or have things slowed down?

[The Great Gold Guru]

I bought another rental in Maori Hill, Dunedin last Friday. Agent had 80 people thru 4 open homes on the property. She said demand was still strong but most buyers needed to sell prior to trading up. I viewed it over the internet ( open 2 view is a great tool !! ) and will hold it long term. Agent said there will be no shortage of people to rent it ... probably around $350/week. ANZ 2yr fixed at 8.99% to pay for it. Well located property will always be a good long term investment.

1. Buy some Gold / Gold stocks
2. Buy some dairy farms
3. Buy well located residential property
4. Buy commercial property in Auckland or Wellington
5. Be happy, enjoy life .... this isn't a practice run !!

[Jess9]

Received a group email from Kieran Trass last night about his new service - analysing investor property portfolios - as we enter the property slump. While the wheel turns slowly it is indeed turning...

[Arbitrage]

[QUOTE=The Great Gold Guru;165227]I bought another rental in Maori Hill, Dunedin last Friday. Agent had 80 people thru 4 open homes on the property. She said demand was still strong but most buyers needed to sell prior to trading up. I viewed it over the internet ( open 2 view is a great tool !! ) and will hold it long term. Agent said there will be no shortage of people to rent it ... probably around $350/week. ANZ 2yr fixed at 8.99% to pay for it. Well located property will always be a good long term investment.

What level of yield do you expect from your Dunedin rentals?

[Dr_Who]

I've cashed up my property portfolio last year. This market makes me nervous as hell. Good luck to those that still hold a large chunk of properties.

[The Great Gold Guru]

6% in Dunedin .....

[Arbitrage]

That is lower than I would have expected. Perhaps it is a result of rises in values over the past few years, as Dunedin used to be attractive for its higher yields. Rent yields in city fringe Auckland are hovering just below 5% so the differential doesn't seem that different as it has been in the past.

Interesting article on the state of the central Auckland apartment market:
http://www.nzherald.co.nz/section/3/...ectid=10464754

[The Great Gold Guru]

It's a nice 3 bed villa , will only rent to a couple/family ... if you're into the student rental market where rooms are rented out individually I am sure yields are up in the 7-8% area.

[Arbitrage]

That is what I was wondering as the higher yield need to allow for higher vacancy rates in the student game.

Still, I am surprised that the yield is only around 6%. However there tends to be an inverse relationship between yield and quality so you must have picked a nice investment in a good spot. Well done. What are your thoughts on rents in Dunedin in the near future? Is there much upward pressure?

My tenancies in Auckland have been stable for awhile which usually means it is too expensive for tenants to move. Location has a huge influence especially in the lower quality inner city apartments. Watching with interest as a mate rents out a villa in the next few weeks to get a feel for rental direction. We are due for an upsurge in rents due to high property prices. Sydney and other major oz cities have already followed that pattern.

[Jess9]

It takes more than expensive house prices to increase rents. Renters also need to be able to afford to pay, and of co**** the balance between available supply and demand is also another "main" factor. I hope they do increase, then (investment) affordability will improve also.