Auckland can not bring new apartments online fast enough. Demand for the smaller abode is coming from everywhere. Migrants, offshore buyers, empty nesters downsizing, first home buyers and property investors are all vying for new or newly renovated apartments. The older apartments however are ignored by these buyers and picked up by Grant Hoey’s investor clients whom have enjoyed a profitable 2016 renovating these apartments for on-sale and often achieving the end to end deal in as little as four weeks.
The 60% LVR restrictions have property investors swooning in on Auckland apartments due to their lower purchase price compared to the standard price of their usual property preference; the standalone three bedroom property in the suburbs. Plus Auckland apartments have become ‘the darling’ of homebuyers by choice with many switching to smaller homes that are situated in their ideal location. Auckland Apartments that are well appointed and in reach of local infrastructure, the work place and entertainment are top of the list albeit in short supply.
Homebuyers are willing to wait for an apartment, now desire to own a mc’mansion in the suburbs is less appealing mainly due to affordability. Back in September 2016 NZHerald reported Auckland has reached a new high – 90 suburbs with the average property purchase price of $1000,000. Price is not the only reason for switching tact, other factors play a part in homebuyers waining interest in the new mc’mansion; including poor transport infrastructure and lengthy travel times to and from work and entertainment.
The larger homes on tiny plots of land are still what’s been built however as they satisfy developers need for maximum profit. More square meterage of house per section and more houses squeezed on tiny plots of land guarantees more profit for the developer and if there’s a lack of interest in these properties the land is banked i.e. not developed. Land-banking is continuing in Auckland and homebuyers want a home now hence their interest in apartments and with demand exceeding supply investors in Grant Hoey’s mentoring program are learning how buy – renovate – sell apartments in need of some TLC.
2017 has started well for apartment investors says Grant. They’re buying well, sometimes below average sales prices which gives them more wiggle room for the renovation before selling on for a good profit.
This blog article was written for PropertyBlogs by Mobilize Mail.