When considering residential investment property in New Zealand, chances are you'll be doing your homework to figure out which areas offer you the best chance of a high return.
All too often, unfortunately, people get bogged down in one or two regions. This is something the recently released June 2014 Housing and Construction Quarterly report from the Ministry of Business, Innovation & Employment took issue with.
"The vast majority of the current discussion around the state of the housing market focuses on two regions: Auckland and Greater Christchurch (the combination of Christchurch, Selwyn and Waimakariri)," the report stated.
"While it makes sense to focus on the areas of the country with the most significant housing issues, there is a risk that focusing too much on a couple of markets can create a misleading picture of what is happening around the country."
For instance, while there's no denying that Auckland and Christchurch have both experienced significant annual increases in home values over the past year, areas like Hamilton are also showing strong value growth.
Data from the report shows that Hamilton posted a nearly 5 per cent yearly house price increase, putting it in 14th place nationwide for home value growth.
This means that Hamilton beat out numerous other high-profile locations, such as Wellington and the Western Bay of Plenty.
People seeking property investment advice should keep this in mind when determining a prime location to buy in.
In fact, with Auckland seeing a huge 13.5 per cent annual price growth, it may make more sense for some investors to focus their efforts on a relatively more affordable location such as Hamilton.
However, before you make any decisions, you owe it to yourself to work with a financial adviser who can assist you in making sure your residential property investment is geared to serve your specific goals.
Here's to your financial independence!
Daniel Carney
Authorised Financial Adviser / Investment Property Expert