Housing guide picks out best rental returns

If you fancy investing in residential property, where would you put your money - Herne Bay or Murupara?

Doesn't seem much of a contest: top-of-the-range inner Auckland suburb sitting on the harbour against the tired remnants of a tough Bay of Plenty timber town miles from anywhere.

But, for investors, the dollars just might add up in favour of Murupara.

Latest statistics put Herne Bay at the top of the New Zealand house price ladder, with average home values of $1,541,722 attracting weekly rents of $1300 to $1600.

With that sort of money, an investor could buy 30 three- or four-bedroom properties in Murupara - the North Island's cheapest location - and pocket $100 to $120 rent for each, bringing in something like $3200 a week.

Bank that rent and - ignoring irritants like inflation, maintenance, insurance and rates - you will have recovered your initial investment in 10 years. Up in Herne Bay, the same exercise would take you 20 years or more.

To read the full NZ Herald article, click here

Posted: 6 Mar 2010

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