Picking a location
Question from john updated on 8th June 2018:
I am a New Zealand citizen living in Australia. I am looking for an investment property in New Zealand. My budget maximum $700,000. Based on the capital gain and rental factors, would you recommend buying in Wellington, Christchurch or Auckland?
1) Wellington prices increased a lot last year. The Wellington market was very stable last decade. But I'm not sure if prices will keep increasing
2) Auckland prices are already very high. I could probably only afford a unit with that budget.
3) Christchurch is very affordable - especially since Auckland and Wellington have already increased. I think Christchurch may also boom at some stage.
Any advice would be appreciated!
Our expert Kris Pedersen responded:
Personally. I would probably say Wellington if you are looking to buy in the short term. As is normal when a Labour government gets in we get house price and rental appreciation. Auckland should be rock solid from a long term view but I wouldn't be expecting any reasonable growth for a few years yet. But I am still a bit wary of some oversupply in some parts of Chirstchurch.
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz
