If you're in the market for high rental yields, investment property in Auckland is looking more and more like a solid choice.
Citing data from the Ministry of Business Innovation and Employment, Interest.co.nz reported on June 20 that rents in Auckland have risen by as much as 6.7 per cent during 2014.
By comparing rental bonds from May this year to May 2013, the news agency found that median rents for most property types increased considerably.
Manukau was the clear leader, sporting an overall increase of $25 a week on the median rent for a three-bedroom house. While these types of properties went from $425 to $450, two-bedroom flats saw a rise from $330 to $350.
Meanwhile, three-bedroom houses in Waitakere saw median rents increase from $400 to $420 a week. Rodney also saw a $20 rise, reaching $450, while the North Shore experienced a $15 increase, rising to $510.
Central Auckland told a different story, however, The median rent for three-bedroom properties in this region stayed flat, although high, at $550 a week.
At the same time, the median weekly rent for two-bedroom flats rose significantly from $370 to $395.
While this may be less than happy news for tenants in the area, it means solid rental income growth for owners of residential investment property in Auckland.
Of course, there's more to consider for a profitable property investment than just rental yields. The team at Goodlife can help you explore your options, taking into account everything from growth potential to tax effectiveness.
If you're thinking of entering the property market as an investor, do yourself a favour and seek out qualified real estate investment advice before making any major decisions.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert