Where to find healthy Rental Yields

December 9, 2014

Tips & Ideas

moneyWestpac’s ‘RedNews’ suggests areas around New Zealand that score highly for a good rental yield. We all know Auckland scores the highest for capital gain and Christchurch’s property is also doing well but other areas around New Zealand do a lot better when it comes to rental yield. And property investors love talking positive cash flow.

Positive CashFlow (+ve cashflow) is talked about a lot on discussion forums like PropertyTalk.com and rightly so as it is fundamental to running a successful property investment portfolio.

While ‘capital gain’ is useful for securing more loans to purchase more property it really comes into its own when you sell. Rental yield however comes into it’s own from day one of owning an investment property thats tenanted. You want to have some cash left over after all expenses are paid and when this results you have a positive cashflow position.

Westpac ‘RedNews’ have published an article with the top gross yield areas of regions around the country.

In Auckland the inner city apartments fair the best with yields around 6.5% or 3 bed homes in the lower socioeconomic areas or outer areas but this is to be expected from New Zealand’s largest city.

By contrast Wellington is not offering any real capital gains but is offering up some really good yields in really good areas and the same applies to Palmerston North.

Christchurch is good mixed bag of tricks with good capital gain in many areas and equally impressive yields in other areas. Dunedin is performing similar to Wellington.

It’s worth checking out this article on RedNews.

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