The Move to Investing in Wellington

Over the last 6 months the property market across New Zealand has continued to rise, with Auckland property values increasing by 15% from 2015 and property values now 85.5% higher than the previous 2007 peak. With Hamilton investment buying starting to slow we have started to see a shift in growth unfolding in the Wellington region with a 17.2% market increase from August 2015, the market now 17.6% higher than the previous 2007 peak.

Captivate Investments newest focus is in the Upper Hutt region. Upper Hutt is a city with a population of 40,179 and is just 25 minutes off-peak or 45 minutes during peak hour drive to Wellington CBD. Alternatively, the main train line runs between Wellington and Upper Hutt on a 45 minute picturesque train ride. 72% of the housing in Upper Hutt are owned by private homeowners or family trusts. Upper Hutt City is an attractive area for families with an abundance of high academic excellence schools. The average decile rating of the schools is above 7, which means that the city is in a high socio and economic area.

Despite the recently announced LVR restrictions, Upper Hutt City is on the edge of a property boom, with inventory now at record low level. There is a strong demand from first home buyers and investors but only with 200 properties listed on Trade Me for sale and 37 properties listed for rent, as of 28 September. Figures from the QV House Price Index in June 2016 showed that the average property value across the region has increased to $388,892 with 16% increase year on year, and property sales are up by 14% over the past three months. It is the perfect market full of opportunities for both investors and first home buyers.

Returns on rental properties in Wellington have also now jumped ahead of Auckland with the average yield for three bedroom homes ranging between 4.96% to 5.2% as of June 2016. This gives property investors in the Wellington region a higher rental income relative to its purchase price than investing in Auckland rental properties.

There are various great lifestyle options about the Wellington region that appeal to both first home buyers and investors. Rental costs in Wellington on average are 26% lower than Auckland and are up to a quarter lower than New Zealand’s other major cities. As the hub of web-based and digital technology companies, Wellington has the highest educated workforce with professionals and entrepreneurs graduating from Victoria University – one of New Zealand’s oldest and most prestigious tertiary institutions. In addition, the Wellington salary average is higher than Auckland and other regions of New Zealand.

Upper Hutt is renowned for its closeness to the outdoors. With the Rimutaka Ranges on your doorstep it is also a great region for causal walks in the nearby reserves and family-fun parks, a morning jog along the Hutt River and swimming or fishing. For those who enjoy adventurous outdoor activities such river kayaking, hunting, gliding, tramping or quad biking, the hills surrounding Upper Hutt and the Hutt River offer you with the best playground right in your backyard.

The Upper Hutt housing market provides an opportunity for investors to purchase quality and affordable housing that include sizable gardens, off-street parking, convenient stores and schools, and an easy commuting to Wellington CBD. If investing in the Wellington region is of interest to you then contact the Captivate Homes team today to discuss the wealth of opportunities available to you coming from the Wellington region.