The New Zealand Investment Property market is not as strong as it's Australian neighbour. The main reasons for this are the lack of significant population growth in most regions needed to create strong on-going demand and the lack of a scarcity of land in many regions. While most of the country has seen good growth over the last three years, many markets are now falling and great care will be needed in selecting the right locations if one is brave enough to buy in New Zealand at all.
Many Investors have turned their focus to rental yields rather than capital growth out of necessity at present. However, as the majority of our clients are seeking good consistent capital growth over a number of years in order to create a significant asset base for their retirement, we have examined the market from a growth perspective and have decided there is very little we would recommend in New Zealand under present market conditions.
Some of the other more "trendy" options such as some of our favourite North & South Island holiday spots have recorded significant results at times in the past, but don't have the key fundamentals in place to offer confidence in long-term sustained growth.
The Auckland Region is probably the safest option in New Zealand for the medium term Investor, being one of the very few places to be experiencing some on-going population growth combined with a scarcity of well-located land. It also has a high percentage of the population renting, which, along with the need to reside as close as possible to the major City Centres, creates a good rental demand.
Like all big cities it has good and bad areas so care in choosing the best areas for quality tenants combined with some possible growth is needed.
