Investment Property in Auckland

Investment Real Estate in Auckland

Auckland property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Auckland .

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Search Map of Auckland Investment Real Estate

Auckland (Māori: Tāmaki Makaurau) is a large metropolitan city in the North Island of New Zealand. The most populous urban area in the country, Auckland has an urban population of about 1,470,100 (June 2020). It is located in the Auckland Region—the area governed by Auckland Council—which includes outlying rural areas and the islands of the Hauraki Gulf, and which has a total population of 1,717,500. While Europeans continue to make up the plurality of Auckland’s population, the city became multicultural and cosmopolitan in the late-20th century, with Asians accounting for 31% of the city’s population in 2018. Auckland is also home to the largest Polynesian population in the world. The Māori-language name for Auckland is Tāmaki Makaurau, meaning “Tāmaki desired by many”, in reference to the desirability of its natural resources and geography.

Auckland lies between the Hauraki Gulf to the east, the Hunua Ranges to the south-east, the Manukau Harbour to the south-west, and the Waitākere Ranges and smaller ranges to the west and north-west. The surrounding hills are covered in rainforest and the landscape is dotted with 53 dormant volcanic cones. The central part of the urban area occupies a narrow isthmus between the Manukau Harbour on the Tasman Sea and the Waitematā Harbour on the Pacific Ocean. Auckland is one of the few cities in the world to have a harbour on each of two separate major bodies of water.

The isthmus on which Auckland sits was first settled c. 1350 and was valued for its rich and fertile land. The Māori population in the area is estimated to have peaked at 20,000 before the arrival of Europeans. After a British colony was established in New Zealand in 1840, William Hobson, then Lieutenant-Governor of New Zealand, chose Auckland as its new capital. He named the area for George Eden, Earl of Auckland, British First Lord of the Admiralty. Māori–European conflict over land in the region led to war in the mid-19th century. In 1865, Auckland was replaced by Wellington as the capital, but continued to grow, initially because of its port and the logging and gold-mining activities in its hinterland, and later because of pastoral farming (especially dairy farming) in the surrounding area, and manufacturing in the city itself. It has been the nation’s largest city throughout most of its history. Today, Auckland’s central business district is New Zealand’s leading economic hub.

The University of Auckland, founded in 1883, is the largest university in New Zealand. The city’s significant tourist attractions include national historic sites, festivals, performing arts, sports activities, and a variety of cultural institutions, such as the Auckland War Memorial Museum, the Museum of Transport and Technology, and the Auckland Art Gallery Toi o Tāmaki). Its architectural landmarks include the Harbour Bridge, the Town Hall, the Ferry Building and the Sky Tower. The city is served by Auckland Airport, which handles around 2 million international passengers a month. Despite being one of the most expensive cities in the world, Auckland is recognised as one of the world’s most liveable cities, ranked third in the 2019 Mercer Quality of Living Survey.

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The financial stability of Auckland has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

Buy to Rent in Auckland

Renting out your Auckland buy-to-rent investment property can grow wealth and income.

Whatever your goals with investment property in Auckland are – preparation is key.

Set goals based on how much rental yield will be required and the local rental yield rates in Auckland and be prepared to change your initial outlook.
Thoroughly research the Auckland location with a special emphasis on fringe areas outside the main Auckland metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Auckland.
Ensure that your target investment property in Auckland appeals to professionals. This is a demographic that ensures maximum income and low voids.
Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent such as Physis Realty with local knowledge and experience of property legislation will give you the best chance of success.
You may think that managing your Auckland properties yourself is an easy option, but are these savings justifiable when you run into Auckland red tape? Physis Realty Auckland office in downtown provides you with peace-of-mind and leaves you time to plan your next move in the growing Auckland buy-to-rent sector.

With our expert guidance, investing in Auckland provides the secure knowledge that your money is working harder than it would in a local Auckland bank and that future generations of your family will be left with substantial capital growth assets.

We are always happy to advise on buying investment property in Auckland, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Auckland property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Auckland

Flipping property in Auckland

Flipping property is when we advise clients to buy a Auckland property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Auckland market has a time to react to the renovation.

The Flipping Strategy in Auckland

Investment property flipping in Auckland is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Auckland real estate investments are sometimes referred to by professionals as ‘distressed’ Auckland real estate.

What is distressed Auckland property:

Auckland property in need of renovation
Auckland real estate with a change of purpose and use
Oversold Auckland property
Bank repossessions in Auckland

Put simply, long term investors in Auckland purchase the property, renovate it and make it a lot more attractive to potential buyers.

Calculate profit that you make from Auckland investment property flipping:

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Auckland property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

Experienced property developers in Auckland use a minimum profit value of 22% when looking at potential Auckland projects. The reason for this is because there are lots that can go wrong in Auckland property flipping and working on a potential margin of 22% should still leave a good margin of error.

Luxury Property in Auckland

For luxury property investors hoping to add a superb property in Auckland to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

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A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Auckland, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Auckland should be entrusted to only the highest-quality agency.

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