Focus On Upper Hutt

February 14, 2017

For all those investors that have purchased investment property from us in Hamilton over the past two years you will know first-hand the significant growth in house prices and rent experienced during this time. According to QV Hamilton house prices have moved 45% and rents in the areas of Frankton, Maeroa and Nawton have moved around 25% since we first started investing in 2015. With the introduction of the LVR restrictions the market in Hamilton slowed down with prices being stagnant overall. Agents are now reporting however that over the Christmas period the market has been very active for the time of year and we would expect the market to gain further momentum over 2017.

Over the past six months we have also concentrated our efforts in Upper Hutt in Wellington. The main reasons for this are:
1. It is a main metropolitan area of New Zealand, thus providing (like Auckland and Hamilton) a more robust long term investor risk profile
2. QV statistics show house prices have only moved 28% since 2012 in Upper Hutt (Hamilton has moved 64% since 2012) demonstrating the potential for further upside – see QV graph below.
3. It is a home owner area – 72% of people in Upper Hutt own their own home – providing a natural insulation to the Investor LVR effects (homeowners unaffected) and underpinning sales volumes
4. Due to the above point rentals are in short supply in the area facilitating improved demand, which is clearly showing up in marked rent increases
5. It is a relatively high socio economic area (Mainly decile 6-9 areas) making it attractive to quality tenants.
6. It provides great diversification for those already with investment property in other geographic areas

QV Market growth 2012 – 2016

graph

Below is an example of a few properties we have available in Wellington at the moment, with more coming on stream each month. You can visit http://captivatehomes.co.nz/investment-homes/available/ at any time to view what properties we currently have available.

1228B Fergusson Drive, Browl Owl, Upper Hutt

1-9