Investment prospects in Hamilton
Question from Dave updated on 8th May 2020:
We are thinking of buying a four bed four bath new build in Hamilton East, close to the University. We have been told that tenants are available for 12-month lease at $250 per room so $1,000 gross per week. The purchase price is mid $600s. Our research indicates that Hamilton has good capital growth prospects and with a gross rental return of around 8% it looks like a sound deal. We would appreciate any feedback.
Our expert Kris Pedersen responded:
As a quick look that return looks attractive. However, I’d caution you to make sure that it isn't inflated in any way as you're obviously going to want the property to continue to perform once you are past the 12-month mark. Hamilton does have good long-term growth prospects. But do some more due diligence to ensure that the stated return is likely to continue to play out over the long term.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz
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