Top 4 Questions Landlords Ask Property Managers

Top 4 Questions Landlords Ask Property Managers blog title with image of house for connect realty

 

We have been in the Property Management business for many years, and over these years there have been some key questions that we get asked regularly by landlords and property investors.  So to make it easy for any potential investor or new Landlord, here are the top four questions we get asked:

1. What are your fees?

At Connect Realty we like to keep things simple by using one flat rate.  Traditionally other companies may charge you commission on: maintenance work, monthly admin fee, attending mediations, payment of insurance, completing inspections, payment of rates, advertising packages, credit checks, attending tribunal and payment of body corp fees.  Our rate includes everything and there are no extra fees for any of the above!

2. How Much Will My Property Rent For?

We offer a free Comparative Market Analysis report on the potential rental value of your property. Given our many years of experience in real estate and property management in the Bay of Plenty we know the market inside out.  We can advise you on current rentals for your property type and area.  Our experience has proven invaluable to our Landlords.

3. How Is Maintenance Handled?

We arrange regular planned maintenance, such as minor repairs and preventative maintenance, to minimise problems and ensure your property remains in peak condition.  To carry out this work we use a variety of contractors who are reliable, consistent and offer value for money.  Quotes can be obtained for most maintenance.  Clients can also stipulate a maintenance spending limit or choose to have no maintenance carried out without their approval.  In this case clients will be contacted for all maintenance issues.

The types of renovations, repairs and maintenance that should be carried out can generally be classified as urgent, short term and long term maintenance. Generally urgent and short term issues are those day to days issues which are essential for health and safety and to comply with provisions of the residential tenancies Act.

Long term issues are not considered urgent and clients can address and plan for these at some stage down the line, often between tenancies. These issues are generally communicated to clients after inspections.   Addressing these issues makes the property more tenantable and often improves the likely weekly rent. These issues might include replacing vinyl and carpet which may be damaged or old, repainting the home in attractive colours or patching a wall or room.

Our flexible property management service allows clients to have an agreement with us in advance with regards to who organises what maintenance when it is necessary.  This means you will always know where you stand and you will not have unnecessary costs that you were unaware of.   

4. How Do You Market My Property and How Soon Will It Be Rented?

Our marketing plans includes promoting your property on the main real estate websites www.trademe.co.nz and www.realestate.co.nz and our own website www.connectrealty.co.nz .

The average timeframe to secure tenants is 14-28 days. When tenants vacate they are required to give a minimum of 21 days notice and we begin marketing for new tenants immediately.  The majority of properties we manage have new tenants secured before existing tenants have vacated.  This is especially true in today’s market where there is a shortage of quality rental properties.

 

Hopefully these answers will help you with those key questions.  For any further property investment advice and/or information about the services we offer as Property Managers please call our office 0800 333 221.  We are always here to help.

Investment Property – Moving Into New Builds

This article written by Miriam Bell and posted on Landlords.co.nz is an excellent article for Landlords who have been put off by LVR restrictions recently introduced.  In the article Ms Bell explains why new builds are exempt from the restrictions and why they are a great option for investment property.

Image of house build for Why New Builds Are A Good Property Investment blog

“New build properties are exempt from the latest investor-directed LVRs and yet, to date, there has not been a big increase in investors taking up that option.

The Reserve Bank’s most recent round of lending restrictions mean that investors are required to have a 40% deposit in order to secure a loan for an investment property.

That requirement has stymied the goals of a lot of investors and, effectively, taken them out of the market.

However, there are still strategies investors can employ to continue building their portfolio in the face of the LVRs.

Perhaps the most straightforward of these requires a move away from investing in existing properties to investing in new build properties.

This is because lending for new builds is exempt from the latest LVRs for both investors and owner-occupiers – and that means investors only need a 10% deposit for a new build loan.

It sounds like a simple way to work around the LVRs and yet, to date, there does not seem to have been a significant groundswell of investors moving into new builds.

The Mortgage Supply Company’s David Windler said he has not seen a big increase of investor interest in new builds.

“This is a bit surprising as, purely from a lending point of view, new builds seem like a logical option because half the deposit is required.

“But maybe when investors start looking at what they can get for a sum of money, then the numbers just aren’t working for them.”

It was possible many investors are not that familiar with new builds and focused on reports of cost overruns and buildings delays, he said.

“I wonder if many investors are not confident enough with the product to move into new builds more.”

Windler’s observations are not isolated, with Property Institute chief executive Ashley Church also saying he is not hearing of big numbers of investors shifting into new builds at this stage.

He said that, given the current lending environment for investors, moving into new builds is counter-intuitive.

“Or you would think it would be. Relative to other options in the market, or other markets, at the moment you would think that new builds would be pretty attractive.”

Church said it was bizarre more investors weren’t taking up the new build option but possibly there was some, not immediately apparent barrier to it.

Traditionally, costs and time delays have been considered an impediment when it comes to investing in new builds.

But data released by homes.co.nz this week suggests that building a new property, rather than buying an existing one, can be more lucrative.

It found that, in hot markets like Auckland, Wellington and Queenstown, new properties typically sold for around $600,000 more than an empty section – which could equate to around $150,000 in capital gain on average.

Homes.co.nz spokesperson Jeremy O’Hanlon said the stresses of building new are not for everyone because of the additional variables including delays, unforeseen earthworks and the people involved in the build.

“But if you’re careful and do your diligence it looks like building new can be a financially smart approach.”

On the coalface, building companies indicate that factors like this, along with the LVRs, means there has been some increase in investor interest in new builds.

Keith Hay Homes’ national sales manager Barry Walker said they are seeing a reasonable number of investors buying new builds, particularly in the Auckland region.

But he thinks many investors don’t realise there is an LVR exemption for new builds, while others believe that the consent and building delays with new builds mean it’s easier to buy an existing house.

“Having said that, I think that we will see a big increase in investors buying new houses in the near future. That’s partly because more will become aware of the LVR exemption.

“Also, now that Auckland’s Unitary Plan is largely operative that will drive investors looking for opportunities to capitalise on their existing properties.

“People are learning what they can and can’t do and will start to move into the new build space increasingly.”

Signature Homes spokesperson Shaun Taylor agreed that investors’ interest in new builds is only likely to grow.

But he said they have already had significant interest from investors, particularly in Auckland, Hamilton, Christchurch and New Plymouth since the LVR’s were introduced.

“We are finding that once investors start the discussion with us they are keen to build when they realise how affordably they can build a new bespoke investment property to suit their needs.”

In his view, the current market and lending environment mean there has never been a better time to build.

He said investors find that building with building companies, which offer independent guarantees, eliminates the risk.

“It also enables investors to build in cities they don’t live in to diversify their portfolio geographically. Plus they get a brand new home which will have higher resale value and reduced maintenance costs.”

Landlords.co.nz

Top Suburbs For Tauranga Property Investors Blog Title Image Connect Realty

Top Suburbs For Tauranga Property Investors

Tauranga property investors have had plenty to smile about lately. The latest Quotable Value New Zealand figures show property prices in Greerton, Gate Pa and Parkvake have risen more than 30% in the last 12 months!  The popular family suburb of Greerton had the biggest gain with median house prices rising from $323,200 to $429,650 in the last year, a gain of 32.1%.

QV Suburb Report Tauranga 2016

Situated on the southern gateway to Tauranga, Greerton is very handy to Tauranga downtown only 6km away.   This suburb has always been popular with families due to good local schools and a shopping ‘village’ complex with over 120 retailers –Tauranga’s third largest shopping centre.  Astute property investors are investing in the $400-500,000 bracket because of the excellent rental returns they receive, and the knowledge that they are getting good long-term tenants.  Investors in this area will also find well-built established homes that do not require large renovation costs to bring them up to market standard.  Often the homes just require some insulating and cosmetic touches to lift their street appeal.

Gate Pa is handily located 5km from central Tauranga. This suburb also contains a shopping centre, supermarkets, restaurants and schools.  Tauranga Girls College is a very popular high school and many families are looking to rent in this area.

Parkvale is located on the coast about 5km from the city centre. Parkvale is a pleasant residential suburb with a range of lovely family homes throughout the area. The local primary school is Merivale.

These suburbs also appeal to investors because it is difficult to find a property under $400,000 in Tauranga, with houses in many other suburbs being snapped-up the day they are listed and/or before they even get to auction.

This, unseen, demand for housing is pushing up house prices in the whole of the Tauranga Region.  Real Estate figures show that most sales in April 2016 were for homes in the $400-499,000 price band whereas the same time last year it was for homes in the $300-399,000 band.  In addition, the sales of million-dollar homes in Tauranga has jumped by 93% compared to the same time last year!

Demand for rental properties is also huge, with many great tenants on our waiting list waiting to find a decent home in a good suburb.

So if you are considering investing in property in any of these suburbs, or Papamoa, Mt Maunganui and other suburbs in Tauranga, call Christine Jenkins at Connect Realty. Chris will guide you through the process, give you a free rental appraisal, find you high-quality tenants and manage your property with expertise and experience.

Chris Jenkins, Connect Realty 0800 333 221.

Tauranga Property Investment – Predictions for 2016

Image of Tauranga sunrise over ocean for Connect Realty blog.

Another year has started and the Bay of Plenty real estate market doesn’t look to be slowing down anytime soon. As with last year, rental properties are in hot demand and the Tauranga Region is still the place where everybody wants to move.  After such a fantastic summer it is not hard to see why families and business owners want to move to the best Region in the country!

But it’s not just our sunny climate and beaches making Tauranga attractive, last year Tauranga was said to have New Zealand’s fastest growing economy, and the fastest growing job market.  With the continued growth of the City we are seen as a great place to invest by property investors from all over New Zealand and overseas.

So with 2016 in mind what are we predicting for Real Estate and property investing in the Bay? Here are our predictions:

  1. Current demand from Aucklanders wanting to move here will continue. This migration has been caused by increasing house prices in Auckland, traffic woes, and the attraction of our Tauranga lifestyle – none of these factors look to change anytime soon so we expect many more to be migrating south to our shores.
  1. We expect high demand for housing in suburbs such as Papamoa, Bethlehem and The Lakes to continue. We discussed these three suburbs in a blog at the end of last year.  They are areas that have proven to be ‘hot’ in the housing market and we expect demand for rentals in these areas will continue throughout 2016.
  1. With current low interest rates and high rental demand there are good yields possible for property investors who invest in the area. We predict rents will continue to increase through 2016 as demand for rental properties still far outweighs supply.
  1. Renovations and rebuilds in other suburbs have caught our eye and point to an increase in value in these areas. When value is added to a number of properties in a neighbourhood it has the effect of lifting the values of all those properties around the neighbourhood as the desirability of the location improves.  Astute property investors should also keep a look out for these areas.

 

If you are considering a Tauranga Property investment give Chris Jenkins a call at Connect Realty Property Managers. Chris has a wealth of experience in Real Estate and property investment in the Tauranga area and can provide you with the latest property stats and rental information to help guide you with your real estate choices.  Connect Realty also offer a free rental appraisal for your future house investment.

Call the Connect Realty team today on 0800 333 221 or email chris@connectrealty.co.nz

Blog image for Tauranga Property investment- Long Term tenants Vs Short term holiday renters

Tauranga Property Investment: Long Term Tenants Vs Short Term Holiday Renters

Blog image for Tauranga Property investment- Long Term tenants Vs Short term holiday renters

With summer arriving many investment property owners are weighing up the option of whether to rent their house to short term summer holiday makers or to long-term tenants.

While there are often quick gains to be made from short term holiday rentals there are also issues associated with this type of renting. For example the following are just some of the hidden problems with short term holiday rentals:

  • Cancellations are quite common, if short notice this can leave you with unoccupied days/weeks and out of pocket.
  • Damage to property. Short term holiday makers are less likely to care for your house and property. Whereas longer-term tenants have to sign tenancy agreements which legally protect you as a landlord.
  • Lack of control on numbers.  In the last few years there have been many reported cases of occupancy numbers in a holiday rental being greater than what was allowed/booked. Unfortunately this can go unchecked, and can result in greater wear and tear on your property.
  • Many online booking sites have ratings and reviews, which can sometimes be difficult for owners if a holiday guest is not happy about their stay.

On the other hand a long term rental requires more commitment from a tenant and stability for a property owner.  Advantages include:

  • Landlords know exactly how much rental income they will be receiving every week.
  • Tenants have to sign tenancy agreements which helps protect landlords rights.
  • A notice period is set so landlords are given plenty of time to organise new tenants should existing tenants wish to leave.
  • Long term tenants are less likely to damage property, and if they do landlords have bonds and/or landlord insurance as cover.

Also, given the current demand for rentals in the Tauranga region, property owners are able to rent their house for a premium to long term tenants.  These tenants are desperate for houses in the areas of Papamoa and Mt Maunganui, and anywhere near good schools.

In addition to the above advantages, landlords can also use the services of a property manager when they choose long term tenants for their property.  Our property management service includes a free market appraisal, REAL Landlord Insurance, set fees, up to the minute reporting and more.

So if you are looking at renting out your Tauranga investment property call Connect Realty today. We care about your investment and want to help you every step of the way.

Location Location Location – What’s Hot In Tauranga Property Investing

Photo of Papamoa Beach at Sunset

Those famous words, THAT famous TV programme.  Yes, despite what many real estate agents will tell you, location really does matter for both home owners and property investors.

But this is a positive thing when you’re looking at investing in property in the Tauranga Region.  With so many fantastic suburbs and a great lifestyle for everyone that lives here, investors are spoiled for choice.  Here are just a few of the suburbs in Tauranga that are hot right now:

Papamoa

Papamoa is the largest suburb in the city of Tauranga and growing every day.  With close access to a stunning 16km long white sandy beach you have surfing, fishing, swimming and every other beach activity right on your doorstep. Besides beaches, this suburb has a real sense of community thanks to great markets, lovely schools and many community-run events for families.  There are new schools here, College and Primary, with more proposed given the rate of growth in this area. Nearby shopping precincts include Fashion Island and Bayfair shopping mall.

Investors have the choice of buying do-ups in some of the older streets, a new home in one of the newer subdivision developments, or investing in a house and land package.

We would recommend this area as a great place to invest, it is particularly suited to those landlords looking at families as tenants.  You will see a strong return on both rental return and capital investment in this area.

 

Bethlehem

Bethlehem is a more established area with mature gardens, a great shopping area close by, supermarket, cafes and restaurants, and it is an easy drive to the centre of Tauranga.  Bethlehem also has great schools, including a high school and 2 primary schools.

This area would suit investors who want to buy an existing home in an established area, it attracts both families and older persons thanks to its safe and relaxed lifestyle.

 

The Lakes

One of the newest developments in the Tauranga area, The Lakes is only a short drive from Tauranga CBD and is selling very quickly.  One of the biggest draw cards for this area is the lifestyle it offers families.  There are acres of parks, reserves, lakes, children’s playgrounds, cycle tracks, walkways and running trails.

The Lakes also has easy access to the new express way which gives you access to anywhere in the district, and there are no traffic hold ups!

There is much going on in this development, including a new commercial area, shops and a medical centre.  The concept supports the live-work-play mantra and they have done an excellent job with planning out the subdivisions.

There are schools nearby, and with the current growth in this area I am sure more will be built.

This area is suited to investors looking for a house and land package, family rental investment, and long term capital gains.

 

If you have any queries about property investment in these suburbs or other areas in Tauranga then give Chris Jenkins a call.  Chris can offer property investment advice and owns Connect Realty property management services. Contact Chris today

3 tips For Property Investment In Tauranga blog

3 Tips For Property Investment In Tauranga

3 tips For Property Investment In Tauranga blog

At Connect Realty Property Management we always say there are two key factors in property investing.  First an investor has to find the right property to purchase, which means knowing and understanding the local real estate market.  Secondly, an investor has to know how to manage their investment so they ultimately make a profit.  Both of these factors require professional advice and support.

  1. Have a Balanced Portfolio

The Western Bay of Plenty, and Tauranga in particular, are seeing unprecedented growth.  The latest news is that Auckland buyers are snapping up investment properties in the Tauranga region without even viewing them. As experienced property managers we do not agree with this type of rushed or ill-informed property investing.

In most locations property increases in value over time, but an investment strategy requires clear short-term and long-term goals as well. Sure some investors are looking to turn-over the property quickly, making a small profit on capital gain alone.  However smart investors will keep the property long-term to take advantage of not only a rising market in trending suburbs such as Papamoa, but also rising rental returns in the whole of the Tauranga area.

Our advice is to have a balanced property investment portfolio that spreads risk and balances highly speculative investments with safer lower-yielding ones.  Given the current state of the real estate market long-term property investments (over 12 months) are looking very strong for our area.

  1. Have A Forward Thinking Plan

As part of our property investing service we can provide you with historical trends for suburbs in the Tauranga region, which can give some invaluable insights on property growth and rental returns.  But property investors also need to look to the future and predict which areas will have strong potential for greater than average growth.  We can provide information on key indicators such as new developments or upcoming redevelopments, transport infrastructure plans and even new schools and Council zoning plans.

In the Tauranga area, and Papamoa in particular, family homes are showing fantastic potential for capital growth, especially with respect to the value of the land.  Tauranga, Mt Maunganui and Papamoa are especially attractive to families with children because of their proximity to the beach, shops and good schools.  New motorways have also made commuting times much better for these areas.

Apartments are proving to be popular for young professional singles and ‘empty nesters’.  This is especially the case if the apartment has great views and a car park provided.  Other selling points include extra facilities such as a pool or gym situated onsite.  We manage a number of apartments for landlords in Mt Maunganui and along the Ocean Rd and find these to be well-built and extremely marketable.

We are happy to sit down with you to identify your target neighbourhood and/or target tenant.  Once you have agreed on the area and style of property we can then help you set a price point for rental return.  This information will be invaluable in helping you decide what property to invest in.

  1. Have Your Property Managed

 Investors often underestimate the costs and time involved with owning an investment property.  Besides the initial legal costs and paperwork, being a landlord means you will also have to consider ongoing costs such as rates, maintenance and insurance.  On top of this investors also need to have a good understanding of property law in New Zealand, including tenancy and landlords agreements and laws.

Having an experienced property manager takes the pressure off an investor.  The best property managers do the right marketing to find a suitable tenant, they take care of the all the legal requirements and necessary paperwork, and they ensure your property is maintained to a high standard throughout its tenancy.

If you require more information about investing in the Tauranga, Mount Maunganui and Papamoa areas then give Chris a call.  Chris and her team at Connect Realty also provide a rental and property management service for these areas and have a wealth of experience and advice to offer you.

Freephone 0800 333 221 or email info@connectrealty.co.nz

 

5 Rules for real estate investing in the bay of plenty blog by connect realty

5 Rules For Real Estate Investing In The Bay Of Plenty

5 Rules for real estate investing in the bay of plenty blog by connect realty

There are actually many rules for real estate investing, so many that we could probably write a Connect Realty property investing book!  However, these are some of the key rules that we think you should consider when you are about to purchase your first investment property.

 

1. Goal Setting

 

We recommend you set specific goals for your property investment, or investment portfolio. This isn’t your wish list, but rather clear and detailed goals that you want to achieve by purchasing property as an investment.  Be smart about these goals, and remember that property should be a long-term investment.  Things to consider include the number of properties you want to acquire, your annual return on your investment properties, type of properties you want to own etc.

 

2. Knowledge

 

Educate yourself.  The more knowledge you have about the location, the market, future council plans etc, the better informed you will be and the more likely you will succeed.

Our years of real estate expertise in the Bay of Plenty property market, including Tauranga, Mt Maunganui and Papamoa, means we can give you key advice about what areas are growth areas, where there is high demand for rentals, the types of rental returns you can expect etc.

 

3. Don’t Speculate

 

We recommend you consider your property as a long-term investment.  Even though Auckland is experiencing un-seen growth in house prices, you never know when a market will peak.  We think it is wiser to not chase after fast appreciation, but to invest in property where the numbers make sense from the beginning.

 

4.  Find A Good Mortgage Broker & A Great Accountant

 

We recommend shopping around when it comes to arranging a mortgage for your investment property. Mortgage rates are competitive in the current housing environment, so take advantage of this and meet with mortgage brokers to see what they can offer you.  You may be surprised how much this can save you in fees and charges.

 

We also believe a great accountant is key to peace of mind for first time property investors.  Outgoing and ingoing expenses should be managed by a qualified, reputable accountant.  This will become even more important as your portfolio expands. The costs associated with the accountant can be negligible when compared to the savings a professional can bring to the business.

 

5. Use Professional Property Managers

 

We may be a little biased about this, but ask any good real estate investor and they will tell you to never manage your own properties. Property management requires a solid understanding of New Zealand tenancy and landlord laws, good marketing skills, and strong people skills to deal with any tenancy issues.

 

At Connect Realty we provide a high quality property management service to all our clients in Tauranga, Mt Maunganui and Papamoa. We aim to obtain the maximum returns for your investment.  We also have the latest market leading software systems that deliver up to the minute reporting.

 

In fact we are so confident with our service that we offer a three month money back guarantee if client’s are not completely happy!

 

So if you are thinking of getting on the investment property ladder, call Chris for a confidential chat about your needs and goals. Whether you are based in Tauranga or outside the Bay of Plenty she can provide you with local real estate knowledge and the latest rental market insights, as well as discuss Connect Realty’s property management services.  Visit our website for more www.connectrealty.co.nz.

Connect Realty Blog image for Four Tips To Make Your Rental Property More Inviting

Four Tips To Make Your Rental Property More Inviting

Connect Realty Blog image for Four Tips To Make Your Rental Property More Inviting

Some property investors make the mistake of thinking that every house they buy will be snapped up for rent, but this doesn’t always happen.  Your property may look old and tired, seem cold, or it could lack street appeal.

Fortunately, there are several things you can do to your rental property to increase its rent appeal:

Update Bathrooms and Kitchen

An ugly, outdated bathroom and kitchen makes a house unappealing and will pull down your rental property’s value in the long term. By updating key items such as vanities, bench tops, cabinets and fixtures your property will look modern, fresh, clean and more attractive to potential tenants.

Renovations don’t have to be expensive.  We often share blog posts from interior designers, decorators and inspiring renovation tips from around the world that don’t involve a lot of money.  Think a coat of paint on the walls or cabinet doors, new retro or modern fixtures and handles and a colourful splash-back for the kitchen. Google ‘Update your kitchen/bathroom on a budget’ to get inspired.

Insulation

Good quality, well installed insulation is a necessity in all homes, and a real advantage when renting out a property.  Good insulation will make it easier and cheaper to heat your rental house properly, and more comfortable and healthy for tenants to live in.   Conversely, sub-standard insulation can result in your property becoming damp and attracting mould.

There is funding available for older homes and if your main tenant has a Community Services Card. To find out if you qualify for any government assistance you will need to contact an insulation service provider in your area. Some local councils and banks also have payment options available to help with the cost of installing insulation and heating.

If you are considering the DIY approach, everything you need to know about installing insulation can be found at this link New Zealand Standard NZS 4246:2006 Installing insulation in residential buildings. It’s easy to follow and it’s free to download.

Also consider quality window coverings, such as thermal lined drapes, if your home is an older home.

Heating

Choosing an efficient heating system for your rental property is important for your tenants and also for future re-sell value of your property.

There are lots of heating options for homes, from wood burners and pellet burners to heat pumps and panel heaters.  It’s important to match the size of the system to the space that needs heating and to consider all rooms in the house.  While some heating solutions will have a larger outlay at the beginning they will also add considerable value to your property in the longer term.

If your home provides modern efficient heating you are more likely to attract a quality long-term tenant for your property.

Curb appeal

It’s important to make a first impression. If the outside of your rental property is overgrown and/or dirty in any way potentially great tenants may just walk away.  We recommend you tidy your section before renting out your property e.g. mow and edge your grass, pull out weeds, fix any broken or damaged exterior fixtures, paint tired looking doors or outside areas, and make sure the shed is clutter free.

Most property owners use a property maintenance company to mow the lawns etc, this can be factored in when doing your rent appraisal.

The above tips can increase your chance of renting out your investment property and boost your property’s value.  For more property investment tips and advice call or email Chris atConnect Realty today.

 

Capital Gain and Top Rental Returns in The Bay of Plenty

Since our last blog, two more articles have featured in the Bay of Plenty times regarding the current property market trends in the Western Bay of Plenty.  As discussed in previous blogs, the current rental shortage is pushing up rental prices in many areas of Tauranga resulting in fantastic returns for landlords, and the current shortage of housing is also resulting in a capital gains increase for the area.

In the article “Top returns on rental homes in city suburbs” they highlighted the great returns landlords are getting for properties in the Hairini, Welcome Bay and Greerton areas of Tauranga.  These areas are all popular with families and those needing easy access to main commuting routes.  In some of these areas rents have increased nearly 10% because of the rental shortage.

The Westpac Property Investor Report (September 2014) quoted in the article names Tauranga’s top 5 suburbs for gross yield returns as shown in this table:

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Gross Yield
Hairini House (3 Beds) $350 $264,000 6.9%
Tauranga Apt/Flat (2 Beds) $272 $246,000 5.8%
Greerton House (3 Beds) $330 $310,000 5.5%
Mount Maunganui Apt/Flat (2 Beds) $331 $311,000 5.5%
Welcome Bay House (3 Beds) $350 $332,000 5.5%

The article also discussed the capital gains property owners are seeing for many of these areas.  The same Westpac report outlines these top 5 suburbs for capital gains returns:

Suburb Property type Median Weekly Rent Estimated Valuation (2014) Capital Gain
Bethlehem Apt/Flat (3 Beds) $315 $335,000 5.3%
Greerton Apt/Flat (2 Beds) $272 $300,000 4.6%
Otumoetai Apt/Flat (2 Beds) $275 $286,000 3.7%
Mount Maunganui House (3 Beds) $375 $455,000 3.6%
Mount Maunganui Apt/Flat (2 Beds) $331 $311,000 3.6%

The second article Value of Bay properties up in ‘cheaper’ areas focused on the latest QV data which also shows that the average value of properties in Tauranga and the Western Bay has increased in the past 12 months, with some increasing in value by more than 5 per cent.

This article showed Pukehina had the highest increase at 9.3 per cent, followed by Matua, 6.9 per cent, Te Puke, 6.8 per cent, Mount Maunganui, 5.7 per cent, and Greerton 4.3 per cent.

Overall Tauranga was one of the best performers in the latest QV data, with values up 0.8 per cent in the past three months and 5.1 per cent year on year.  As previously discussed, many people form Auckland are taking advantage of the cheaper property prices and better lifestyle in Tauranga and the Bay, driving up demand for all types of housing in these areas.

So now is a fantastic time to invest in a Tauranga rental property. With great returns and a capital gain combined with the services offered by Connect Realty Property Managers, you can enjoy a stress free investment.

If you wish to discuss any of the figures outlined in this blog, or the quoted articles, please call Chris in our office. She would be happy to talk about possible rental returns for your investment property, real estate trends in the Bay and more.