Ok. I Live in NZ and currently rent. i am considering a suburb called beachlands in auckland NZ.
The town is a small suburb in east auckland in a bay by the water. only 12 mins from another major centres.
reasons i may consider it.
- town quite small but expanding.
-alot of expensive homes going up now
-good schooling nearby by bus.
-close to beach.
-not much land available at present for sale. so it sells extrememly quick.
-it up untill recently was mostly a holiday town by the beach. now people seem to be moving there as it is closer than most other major suburbs but near the beach and cheaper.
-good rental demand
there are my reasons why i am considering this suburb. any opinions?
Beachlands has been moving up for the last 15 years as more retirees moved out there. The marina development at Pine Harbour is also a lifestyle attraction. The Golf course hasn't proved to be everything everybody hoped for. Over time more people haved moved out looking for a relaxed lifestyle while still commuting to town for work. The drive to and from can be a real pain when the commuters are on the road. Also, the Maraetai-Whitford road has seen a few nasty accidents. Would be a lot better if they would make it two lanes in both directions. Over time I feel the area will continue to improve but I would suggest researching it well and buying something with a view if you can. Good luck.
Beaches are always positive with people naturally liking the sea, surf and leisure lifestyle.
However holidays towns I believe have a higher volatility in earnings with the greatest amount of renters coming in during the holiday season. Higher short term rents but a greater vacancy rate during the off-peak season.
Retirees are potentially good stable renters however many will have the funds to purchase their needed accommodation outright.
A good holiday environment with limited land will contribute to potentially good capital growth but will not necessarily help yield.
Something to look for:
Are there any other industries nearby which could provide employment for your future tenants in the area?
Are there development companies who will have projects in the area to market the "beachlands" name in the future and so contribute to it's capital growth? (All about picking the time BEFORE they market to get the best results.)
If these check out and you feel comfortable with potentially higher volatility I say the area certainly is worth exploring more.
Important next step is to research the prices in the area and find the right deal.