Investing in Rolleston
Question from Darryl updated on 12th February 2016:
I am based in Auckland and I am looking at whether Rolleston in Christchurch is a good place to invest. I would be purchasing a four bedroom house and land package with the intention of holding on to it for 10-years and its price doubling.
How is Rolleston currently viewed as a place to invest when compared to Auckland, Hamilton or other areas?
Should I purchase an investment this far away from Auckland? We would use a Rolleston based property manager.
Our expert Kris Pedersen responded:
I'm not really a Christchurch or Rolleston expert but I would ask you what fundamentals does the area have that is making you pick this over another area? Does this area have, and will it continue to have, strong demand? Talk to a local property manager to ascertain what current tenant demand is for this type of property. I remember an economist recently said that in Canterbury prices were likely to trend sideways as, for the most part, supply has now caught up with demand and consent issuances have eased.
On the flipside, you mention Hamilton. I expect both this general area and Tauranga to continue to have reasonable capital growth as Auckland money flows down the road because of the new 30% LVR restriction. So, as a quick analysis, if the cashflow was comparable I would personally be more likely to look in these areas than in Christchurch at the moment.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz
