Where do you find great rental yields?

When you're buying an investment property in New Zealand, on of the main things you're looking for is a great rental yield. This is the percentage of the price of a property that you can make back in rent each year, which usually sits somewhere around the five per cent mark. Of course, this can fluctuate depending on outside economic factors, but this is a good figure to aim for when you own an investment property.

But according to the rental yield calculator from the Real Estate Institute of New Zealand (REINZ) and interest.co.nz, there are some phenomenal yields on offer around the country. Check out what they have recorded across some areas of New Zealand with high rental activity in recent months!

Grafton

For this area of Central Auckland in the six months to September last year, the gross rental yield based on REINZ and Ministry of Business Innovation and Development figures was a whopping 12.3 per cent. This was for a two-bedroom apartment! While property in this area can be expensive, planning ahead and getting appropriate financial advice could see you rolling in positive cashflow. 

Hamilton

There are many areas in this city that have great rental yields. For example, the rental yield indicator shows that Fairfield and Fairview Downs have gross yields of 7 per cent! This follows yields of 6.9 per cent in September 2013, showing some great consistency. 

With recent data from REINZ showing that the median home price in Hamilton City has decreased in the last 12 months, 2015 could be a great opportunity to invest in some great value property that nets you some considerable positive cashflow.

Of course, this will not happen overnight – talk to an Authorised Financial Adviser about the steps you take to seeing these yields become a reality for you.

Here's to your financial independence!

Daniel Carney
Authorised Financial Adviser / Investment Property Expert