Hamilton v Tauranga
Question from Jitesh updated on 24th February 2015:
I'm looking for an investment property in Hamilton City for around $270,000. I'm looking for a three-bedroom house where the rent covers the mortgage. Is Hamilton a good place to buy property? Or any other city like Tauranga? What is your opinion about capital gain in Hamilton in the coming three to five years?
Our expert Ron Hoy Fong responded:
If you are investing for a cash flow and you are only looking at Hamilton or Tauranga, then my choice would be Hamilton being the bigger city where jobs are more likely to be available. Invest nearer hospitals or university where accommodation is always in demand. Try to buy where Mr and Mrs Average want to live in the middle class areas. There are early stage plans to develop an inland port in Hamilton and it would be speculative now to buy for those reasons and the timeframe of when this would happen may be a little way off yet. Should it go ahead it would provide for a lot of jobs and increase Hamilton's economy hugely. Hamilton's hospital is one of the largest in the country and as baby boomers enter into retirement and needing increased hospital care, nearby accommodation for hospital staff will always be in demand. As the city of Hamilton grows further out from its centre, and the motorway between Auckland and Hamilton continually gets upgraded and wider, capital growth will of course accelerate. Investing for the capital growth is a 10 year plan, so if you are into your late 50s it may be too far away, in which case investing in Central Auckland suburbs would have greater opportunities, however unless you are able to obtain more financial leverage, $270,000 would be an insufficient amount.
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