Cranes are taking over the skyline suggesting Auckland is sitting pretty for thousands of new apartments to meet demand. However a renown local apartment investor and mentor says what’s going up now is already sold and with some developments canned in 2016 supply of new stock is falling short of demand.
Grant Hoey, Auckland apartment investor and mentor says his clients are actually looking forward to 2017. A lot was thrown at investors in 2015 and 2016 with the tightening of the LVR rules however Grant says his clients have remained active in the market, buying well, adding real value and getting the reward with healthy margins when they sell.
Apartment buyers not keen on renovating are overlooking apartments on the market that require some TLC. Over the years Grant has perfected the ‘apartment reno’ and his investor clients use his process to buy, renovate and sell for a profit. Grant’s Auckland apartment investor clients often need less than four weeks to turn ‘an ugly duckling into a swan’ with many of his clients generating six figure incomes.
“This is life changing with Auckland apartment investors starting out in permanent employment then leaving their jobs to invest full time. There’s equity and cash flow in Auckland apartments.”
Trade Me Sales Price Index data reports an increase of 8.1% in sales prices for Auckland apartments in the year to July 2016, however for the past six months sales price increases have plateaued. The growing disparity between supply and demand will likely see a spike in apartment sales prices in 2017.
This blog article was written for PropertyBlogs by Mobilize Mail.