Investing in Auckland apartments is a great way to get on the property ladder says a couple of property experts. Dave Windler of Mortgage Supply and long time apartment investor and mentor Grant Hoey agree there’s a lot more demand for Auckland apartments from first home buyers and it’s not just investors signing on for inner city apartments mentoring. Grant Hoey has provided his Auckland apartments mentoring service for over 10 years and says many of his clients are first-time buyers seeking support and guidance with the ever-growing apartment market. Tighter lending requirements and the lower purchase cost of apartments has also made apartments a really attractive option for traditional home buyers ready to opt an inner city lifestyle.
“In 2017 demand for Auckland apartments will remain steady. There are many trigger points that will keep the demand flowing including: migration, empty nesters and retirees opting for the inner city lifestyle, first home buyers wanting a foot on the property ladder and investors attracted to the lower purchase price. Apartments are in the enviable position of being more affordable than houses.”
From Grant Hoey’s eBook Cash Flow Apartments 2017
What may surprise, is home buyers and investors are more likely found in a symbiotic relationship and not in direct competition when purchasing apartments. Typically owner occupiers want recently refurbished or brand new apartments while investors will opt to purchase do-ups so they can add value to increase it’s sales price or property value and rental return. Notably even with Auckland’s skyline riddled with cranes – the supply of new apartments coming online is still far short of demand so the work investors are doing on the older apartments is paying off. Renovated apartments in good locations can and do fetch premium sale price.
Last month Auckland apartments median value hit the half million mark however Grant Hoey says there’s still apartments being purchased renovated and listed for sale again for under $400,000 and he’ll be showcasing a few apartments his clients have recently renovated and sold at his annual Cash Flow Apartments Seminar.
So what’s the immediate future look like for Auckland inner city apartments?
“I predict apartment prices may level off after the general election this year though maybe not – it might depend on who is in Government and their policies for housing.”
This blog article was written for PropertyBlogs by Mobilize Mail.