Rental Buys looking good

As house prices and interest rates drop, buy-to-let property investment in some neighbourhoods is suddenly looking attractive again. For the first time in five years, there are places where you can easily buy a house or apartment, rent it out - and cover all your mortgage and property management costs with some money left over.

Quotable Value estimates 46 suburbs across New Zealand offer positive cash-flow returns. They include apartment-dominated inner-city areas such as Grafton, Eden Terrace and Central Auckland, and the Lambton precinct in Wellington.

But they also include lower-income housing suburbs on the fringes of the big cities, such as Mangere, Otara and Albany near Auckland, or Stokes Valley, Wainuiomata and Waitangirua near Wellington.

Neighbourhoods in smaller North Island centres such as Pleasant Heights and Koutu in Rotorua, Flaxmere in Hastings, and Nawton in Hamilton are also profitable. And it is possible to turn a dollar throughout much of the student-dominated southern city of Dunedin.

To read the full NZ Herald article click here

Posted: 11 May 2009

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