A closer look at apartments

As a specialist property management company, Barfoot and Thompson is responsible for managing in excess of 16,000 properties, of these nearly 1500 are apartments.

 In our August analysis, the average yield received across all property types showed Apartments as having the highest yield.

Apartments often make great 'starter' investments for investors getting into property investment, especially as much of the repairs and maintenance of apartments is included in the body corporate fees.

Currently the majority of our Apartment managements are in the inner city which accounts for nearly 40% of our managed Apartments. With intensification expected in other parts of Auckland (and the changes being brought about by the unitary plan) you are likely to see more apartments in other areas of Auckland.

The Westlight apartments project in Glen Eden,for example, is an excellent development that offers unique investment opportunities for today’s home buyers, with freehold apartments that are as affordably priced as they are stylishly designed and beautifully finished.

Although more are becoming available, our  statistics indicate that properties of three or more bedrooms are still the minority, with one and two bedroom places making up nearly 90% of Barfoot and Thompson's lets.  

With the average price of $413,000 for a one bedroom apartment, and the weekly rent at just over $400, a net yield of over 5% can be achieved, which is considerably higher than the Auckland average which is currently 3.27%.