Hamilton investment property gains appeal

Published on: 2015-01-20

There continues to be no shortage of money available for investments and this is most graphically illustrated in the multi-unit investment market and the commercial investment sector. Yields continue to be driven to new historical lows as investors compete for investments to beat historically low bank rates.

Residential investors have been slower to identify the opportunity within Hamilton. Median rents at the 2013 census were higher than median rents across the rest of New Zealand. However, the median house price lags the rest of the country’s median by around 17%. With population predictions all in favour of a city wide expansion residential property investors look ready to receive a wind fall.

Property isn’t traditionally a get rich quick scheme. Most often it will have periods of rapid growth, as Auckland has just experienced, followed by periods of sustained consolidation. Tales told around the Christmas table of gains from property generally have time as the common denominator. Hamilton has a younger population than the rest of New Zealand and, as one would expect with such a population, a lower home ownership rate. As the city’s population ages and grows richer home ownership will become a priority fuelling demand for Hamilton housing.