GOOD YIELD APARTMENT DEVELOPMENTS ARE IN ABUNDANCE
September 7th 2016
Some of the latest residential apartments, currently under construction in Auckland, really are stunning. They offer an exceptional standard of living and include community creating spaces situated within their boundaries. They are eco aware, high-end, spacious & affordable.
As rents continue to rise in the inner city and immediately surrounding area, the benefits of purchasing apartments over suburban sprawl housing, is a valid option for investors wanting to access the best yield possible on their investments. While the land value may be lower, it has been proven over the past couple of years that the same exponential growth in sales prices has been occurring with apartment purchases/sales as Auckland becomes more Metropolitan and apartment living has become a preferred lifestyle for many.
Purchasing apartments off plans has many advantages. While no property investment is completely without risk, the low deposits required to secure an initial purchase mean that there is often already an increase in value by the time the development is completed and full funds are required to complete the purchase contract. Developers are revelling in the speed at which apartments are being sold, well before construction has started, and with a good property management partner working for you prior to completion, your investment can be tenanted as soon as the apartment is ready to be released.
If you are interested in current developments, check out Hometopia / Find me a home / In the Pipeline - this site provides direct links to developments under construction or due to commence. Do your due diligence on developers and visit the show apartments when they are available to view prior to committing. Seek an estimated rental appraisal from more than one source and make a purchase with yield in mind - for example 1 bed/1 bath apartments are often far easier to let, with a higher rent proportion than 2 bed apartments. Larger unfurnished apartments are in short supply in the inner city area and are likely to attract longer term tenants, while fully furnished apartments are attractive to those immigrating to New Zealand or here on short term contracts - thus allowing the rent levels to increase more regularly.
We are always happy to assist with rent appraisals, if you would like an independent opinion prior to proceeding with a purchase.