Bountiful pickings in fruit bowl for canny investors

HAWKE’S BAY HAS BECOME synonymous with a great climate, awardwinning wines, art deco, extensive cycle tracks and abundant fresh fruit on locals’ doorsteps. City dwellers with an eye on property will also hold up the province as an area where considerably cheaper housing can be bought compared with the main cities, and a great lifestyle enjoyed. The Bay is particularly popular with families, with a range of great schools, and outdoor amenities.

For the seasoned property investor, there appears to be opportunity in certain areas. For the "mum and dad" investor, however, the jury is out about the worth of investing in housing, especially for capital gain.  Hawke’s Bay property investors’ association president Graham Duff says the housing  market remains flat, and economic and job growth is stagnant, with no real signs of a substantial pick-up. Signs of a healthier economy were encouraging, however, with Kiwibank establishing a service centre in Hastings and the launch of a research and development facility of power electronics company, ABB, at the Hawke’s Bay Airport business park, he says.

HOLDING PATTERN

Andrew Chambers, of valuation company PropertyIQ, says mum-and-dad investors are in a holding pattern, partly driven by the lack of housing turnover and quality housing on the market.