Not a Shore thing

For those who have investment properties in the North Shore and Hibiscus Coast, the recent acceleration of property values is positive and provides new opportunities for further investment, but it's a different story for those trying to climb onto the ladder.

In the past year the North Shore has made some of the biggest capital gains seen in New Zealand. But needles in haystacks come to mind when the subject of finding a property with a great rental yield is raised.

Over the past 20 years prices have risen as fast on the North Shore as in Auckland City, according to QV, but the question for investors on the Shore is the numbers and how to make them stack up. This is particularly challenging when 21 of the Shore’s 38 suburbs are now million dollar babies, according to QV.co.nz’s latest E-Valuer quarterly report released in January.

Yet investors are still buying, real estate agents say. Canny investors can even find half decent yields on properties. The reality, however, is those who do buy have looked long and hard and are willing to put in the hard yards to squeeze out cash flow.