Good rental returns in Wellington and Auckland
December 29, 2017
|Last Updated: Dec. 29, 2017|
|AUCKLAND - Apartments (size)||COST ($)||YIELD (p.a.)||PRICE/SQ.M. ($)|
|TO BUY||MONTHLY RENT||TO BUY||MONTHLY RENT|
|50 sq. m.||360,450||n.a.||n.a.||7,209||n.a.|
|AUCKLAND - Apartments (bedrooms)|
All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you'll really earn) are typically around 1.5% to 2% lower.
Auckland: Auckland Central, Mt. Eden, New Market, Parnell and Ponsonby
Source: Global Property Guide Definitions: Data FAQ See also: Update Schedule
Last year, we found that the best rental returns available on apartments in Wellington had moved slightly ahead of Auckland. This may reflect a jump in prices of larger properties in Auckland, which would tend to reduce the rental returns. "Foreign buyers are mostly drawn to the Auckland area", explains Bill Sandston, a real estate lawyer.
In Wellington, the capital of New Zealand, rental yields on 1 and 2 bedroom houses are now around 5.5%. Apartments, and particularly smaller apartments, tend to earn more - last year we found returns of from 6.88% to 8.43%
In Auckland, last year we found that rental yields on apartments ranged from 6.09% to 7.18%.
Property transaction costs analysis in New Zealand are rather low, and in regional terms, the total costs of buying and then selling a property are very attractive.