Good rental returns in Wellington and Auckland
| Last Updated: Nov. 29, 2019 | |||
| CENTRAL AUCKLAND - 3-BR HOUSES | COST ($) | YIELD (p.a.) | |
| TO BUY | MONTHLY RENT | ||
| Auckland Central | 1,054,400 | 2,984 | 3.41% |
| Avondale | 509,943 | 1,534 | 3.63% |
| Blockhouse Bay | 587,284 | 1,553 | 3.19% |
| Epsom | 833,645 | 2,119 | 3.06% |
| Greenlane | 690,560 | 1,850 | 3.23% |
| Grey Lynn | 1,042,216 | 2,163 | 2.50% |
| Hillsborough | 616,092 | 1,622 | 3.18% |
| Lynfield | 559,271 | 1,572 | 3.39% |
| Mt Albert | 598,487 | 1,683 | 3.39% |
| Mt Eden | 883,673 | 2,041 | 2.78% |
| Mt Roskill | 570,352 | 1,595 | 3.37% |
| New Windsor | 617,047 | 1,578 | 3.08% |
| Onehunga | 581,456 | 1,706 | 3.54% |
| Ponsonby | 955,392 | 2,615 | 3.30% |
| Royal Oak | 842,432 | 1,736 | 2.49% |
| Sandringham | 755,565 | 1,756 | 2.80% |
| Three Kings | 638,445 | 1,861 | 3.52% |
| Westmere | 897,920 | 2,382 | 3.20% |
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All yields are gross - i.e., before taxes, repair costs, ground rents, estate agents fees, and any other costs. Net yields (what you´ll really earn) are typically around 1.5% to 2% lower. Source: Barfoot & Thompson Definitions: Data FAQ See also: Update Schedule |
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Last year, we found that the best rental returns available on apartments in Wellington had moved slightly ahead of Auckland. This may reflect a jump in prices of larger properties in Auckland, which would tend to reduce the rental returns. "Foreign buyers are mostly drawn to the Auckland area", explains Bill Sandston, a real estate lawyer.
In Wellington, the capital of New Zealand, rental yields on 1 and 2 bedroom houses are now around 5.5%. Apartments, and particularly smaller apartments, tend to earn more - last year we found returns of from 6.88% to 8.43%
In Auckland, last year we found that rental yields on apartments ranged from 6.09% to 7.18%.
Property transaction costs analysis in New Zealand are rather low, and in regional terms, the total costs of buying and then selling a property are very attractive.