When seeking property investment advice, there's a good chance you'll hear that locking in quality tenants for long-term leasing is a great way to create a positive cashflow arrangement.
While this is true, it's far from the only way to profit from an investment property in New Zealand. In fact, sometimes short-term renting makes more sense, especially when it comes to an area with a high turnover of new residents.
Property investment in university towns
There's a wide range of benefits that come with investing in property in areas with universities.
First, you'll have a large tenant pool to choose from. Each new school year brings with it many people in need of accommodation.
This high demand translates to high rental prices. Even if property values start to decline in the area, the constant demand for rental houses can keep your cashflow strong and steady.
While university towns typically have a large turnover rate and transient rental population, this isn't necessarily a bad thing.
For instance, knowing you can refuse to renew a tenancy agreement because there will always be new tenants to take the place of existing ones can make it easier to end relationships with problematic renters.
Residential investment property in Hamilton
Hamilton is home to Waikato University, ranked in the top 50 in the Times Higher Education Top 100 Under 50 list. Times Higher Education also ranked the University of Waikato in the top 2 per cent of the 17,000 universities worldwide.
With accolades like these, it's no surprise that plenty of students are clamouring to the area to attend.
Fortunately, those looking toward property investment in Hamilton can take advantage of this. Hamilton is a growing city and with more property developments occurring around the area, there are many opportunities for investors to enter the market.