House prices on the rise throughout New Zealand
If you ever seek property investment advice, one of the first things you're likely to hear is how important it is to keep an eye on real estate prices in the area you're looking to buy in.
Fortunately, there's no shortage of organisations reporting on the value fluctuations currently underway in New Zealand.
According to the latest QV Residential Price Movement Index, nationwide residential prices increased 8 per cent on a year-over-year basis during June, as well as 2.1 per cent over the past three months.
"The nationwide index is still increasing but the picture around the country is mixed," said QV National Spokesperson Andrea Rush in a July 7 media release.
"Residential property values in Auckland and Christchurch are still increasing at a similar rate to what they were in June last year. While values in Wellington and Dunedin are showing a downward trend this month, as are a number of other provincial centres around the country."
It's no surprise that prices in the Auckland region are high and continuing to grow. One strategy savvy investors may want to consider finding a more affordable area that is also posting steady price growth, providing an easier market to enter while still offering a chance for gains.
For instance, residential property values in Hamilton rose 4.9 per cent on an annual basis during June, as well as 1.1 per cent over the past three months.
QV Valuer Nicky Harris said that the increases in Hamilton can be attributed to the top end of the market, especially in North Hamilton.
Depending on your strategy for residential investment property in Hamilton, it could be wiser to focus on the less prestigious markets or jump straight into the higher end.
Regardless of where you buy, however, you should work with professionals who can help you account for things like price fluctuations, rental yields, tax planning and other important real estate investment elements.
Here's to your financial independence!
Authorised Financial Adviser / Investment Property Expert