The market for residential investment property in New Zealand is producing healthy results. Recent research from QV has revealed that in the 12 months to August 2015, nationwide residential property values rose more than 11 per cent.
The main driver is Auckland, as prices are rising at their fastest in more than a decade. QV National Spokesperson Andrea Rush asserts that the boom is beneficial for areas outside of the big smoke too.
"The upward trend in values seen in upper north island centres near Auckland is also continuing, with the Hamilton market now accelerating and values in Tauranga, Whangarei, Hastings and the Hauraki District continuing to rise," she said.
According to figures from the report, the average values and annual changes for residential investment property in Auckland and Hamilton were $874,851 (up 20.4 per cent) and $400,811 (up 10.3 per cent) respectively.
These statistics mean people who got into the property investment market just 12 months ago have already experienced significant growth. For example, had you bought an Auckland investment property in August 2014 for the average price, you could have made around $170,000 by now in capital gains.
Fortunately, it's never too late, as the market is showing no signs of slowing.
"More listings are coming onto the market with the coming of spring; but, with sales numbers up by 25 per cent compared to this time last year, stock levels remain tight in many places," said Andrea Rush.
According to the report, homes in some areas of Auckland have been sold more than once in 12 months, with sellers experiencing profits despite doing nothing to the properties. However, this method of investment can prove to be costly. If you would like to know more about the property investment market, you should get in touch with a professional who can assist you in producing a sound strategy.
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