Buy to let in Auckland

[jimothy]

I'm thinking of expanding my (albeit small) investment portfolio to include a few international apartments to rent out. First place I'm thinking of buying in is Auckland (I know a good builder there which always helps).

Does anyone have any experiences of doing this they could share? I'm thinking of spending up to NZ$150k, maybe on one place, maybe on a couple of student lets and just leave them earning money (not planning to make a fast buck and flip them, just after a long term payoff).

Are the student places worthwhile? Is the city a huge ripoff and should be avoided? Any tips?

Thanks!

[Caterhamfan]

Have you looked on TradeMe or any of the Auckland real estate agent websites? A quick search on TradeMe suggests that you won't exactly be spoilt for choice at that price point - most of the property up to $150K is relocatable houses Having said that, there are a few student apartments for sale so you might be lucky - although reading the ads, some seem very keen to sell their "guaranteed investment opportunities with hassle free income"! Definitely a case of caveat emptor so hopefully someone with local knowledge will be able to give you some good advice!

[Atom Johnny]

If you're talking $150k investment into a property as a depost where the rental pays the balance of the mortgage then there is a lot of possibilities. But a property in Auckland for $150k in total, you're dreaming. Maybe a one room apartment too small to swing a cat. You could get $250/wk from some foreign student for it. Cheapest currently is $155k. www.realestate.co.nz

[lestag]

jimothy said:

Any tips?
Thanks!

Look at cities with better returns
you might get a carpark sapce or two for $150 in Auck, having said that I have a cousin that has a couple of them .. well he used to..
Also be careful of apartments.. leaking buildings and corporate levies

[jimothy]

So the general consensus is it's a bad idea - any better places in NZ to do this?

[Gator]

Id be giving these guys a call

http://www.citysales.co.nz/

they advertise heavly on the radio and sound like they know what it all about.

[mark387mw]

Do be careful of Body Corporate and other fees which can escalate, particularly if on leasehold land.
This one in Napier for example, is for sale at 55% of GV http://www.trademe.co.nz/property/residential-prop... but has $14,300 annual fees which won't go down hence the bargain it is.

[Fraster]

You say you don't want to flip and make a quick profit, but I assume you are not opposed to selling and making a profit at some time in the future. I'd be sticking to the old advice of buying land, not a building: ie; stay away from apartments.