When considering property investment in Auckland, it’s crucial to remember that your choice of property will directly influence the type of tenant and the level of rental income that you will attract.
To start, conduct thorough research on your target area. Understanding the local demand for rental properties and the preferences of potential tenants is essential. You should also determine whether houses or units are more favoured by renters in your area.
As a general rule of thumb, houses tend to be a more expensive investment, but they offer the advantage of greater capital growth, primarily due to the land component they come with. These rentals are particularly attractive in areas where young, or growing families seek to establish their homes.
On the other hand, units present a more manageable maintenance profile, leading to reduced ongoing maintenance costs. This makes them attractive for singles and couples who often prioritize their lifestyle over space. Your Auckland property management strategy should be tailored to the specific property type you invest in, ensuring you’re well-positioned to meet the preferences of your target tenants. This will help ensure maximum rental returns on your investment property.
Below is a checklist of factors to keep in mind as you hunt for your Auckland rental property:
Choose Your Location Wisely:
Properties situated in city centres, on popular streets, and close to local schools, universities, or hospitals tend to be highly sought after, commanding strong rental income. They also offer the advantage of easier tenant replacement when current occupants move on.
Consider Local Amenities:
How close is your property to key amenities? Poor access to public transport, schools, employment opportunities, plus properties located on noisy streets or beneath flight paths can deter potential tenants and impact rental rates negatively.
Should You Buy a House Or a Unit For Your Investment?
When it comes to real estate investment, the numbers matter most. Houses typically excel due to their land component but are often more expensive. Units offer easier maintenance but come with strata costs. It’s essential to focus on your financial bottom line and not let personal preferences cloud your judgment. The key is to ensure your investment aligns with the demands of the local rental market.
Take Note Of The Rental Market:
Understanding the needs and wants of Auckland renters is crucial. Your property’s style should cater to the preferences of prospective tenants in the area. Ensure you are investing in a property that is well-suited for renting in its specific location.
Avoid Fixer-Uppers:
Unless you have vast knowledge and expertise in construction and stumble across a remarkable deal, steer clear of investment properties that require extensive repairs or structural modifications. Instead, concentrate on properties with well-maintained fixtures in the kitchen and bathrooms. Minor touch-ups like repainting or updating vanities and kitchen counters are acceptable, but avoid costly renovations to maximize your return on investment.
