The most recent figures from the Real Estate Institute of New Zealand show that Auckland's median house price reached a new record high of $678,000 in December last year. While this is great for those who have already made a property investment, it does make it harder for those who are yet to get onto the property ladder.
Looking elsewhere around the country can be worth your while, and Hamilton offers opportunities for investment without straying too far from Auckland itself. Here is why it could be a worthwhile investment to look into.
Strong business economy
In a November 19 press release from the Property Council of New Zealand, it was noted that the Waikato has been attracting healthy amounts of business investment. The Economic Impact Assessment of the Property Industry in Hamilton and the Waikato found that property made up 14.2 per cent of the Hamilton GDP in 2013, as well as a very significant 20.1 per cent of employment in the city.
The report also found that the Waikato property industry has a larger multiplier than other industries in the area so has a huge impact on Hamilton's economy. Impressively, its total contribution to the city's GDP equated to more than $1 billion.
With the industry thriving in the area, it stands to reason that seeking out a property investment in Hamilton could be a very beneficial move.
According to Statistics NZ data, Hamilton's population increased by 9.2 per cent between the 2013 and 2006 censuses. This is excellent growth, and suggests more and more people will fill up demand for homes in the area.
Auckland isn't the be-all and end-all of property investment. Cast our net a bit wider, and you might land the big fish.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert