New Zealand real estate market?

[Micki M.]

I'm a broker in Colorado who used to live in NZ. I'm thinking about moving back there and would like to learn about the market(s). Any NZ investors want to talk about what they see happening, or recommend a local agent I could talk to? Ideally I'd like to be in the South Island (Christchurch, Queenstown, Dunedin, Nelson) but Wellington would work too.

[Steve G.]

@Micki McNie Sure.

The Auckland market is currently on the up again, after a flat period, but trying to purchase a property to flip or invest in, is ever-more difficult as there is an abundance of overseas investors (especially Asian's) with cash resources, buying up anything and everything.

Local investors are finding it hard to get deals for the right prices, and buying at auctions is almost a thing of the past. The upside is, if you can get something at the right price, it'll on-sell or rent quite easily, as the population is expanding rapidly.

Apartments seem to be doing a return to popularity, again possibly because a lot of the immigration prefers these type of dwellings. SFR's are still strong and some of the outlying area's which in days gone by would not have seen investors drive through let alone purchase property in, are now good area's to checkout (Otara, Onehunga, Mangare Bridge etc).

As always, if you're on the ground, there are deals to be had, but with property prices at 6-8 times the average household income, for me, the figures (currently) don't work with ROI's in the low single figures . . . . if at all (negative gearing is still popular here for mom & dad investors who get their advice from non-investor financial "experts")

Christchurch is another animal, with the rebuild going on the market for rentals for contractors is red hot! More demand than inventory. The more savvy investors started buying once they knew which area's were not "Red Zoned" or going to be pulled down and rebuilt (still don't in many cases). In my opinion, this market is more feasible with the possibility of both commercial and residential investments - if you're willing to look into more substantial reno work involving (in a lot of cases) structural work too. If this is your thing, be prepared to wait long periods of time for the relatively small amount of inspectors who need to pass properties off for work before you'll be able to get started.

I'll be in touch!

Thanks