Bay of Plenty Times
  • Bay of Plenty Times home
  • Latest news
  • Business
  • Opinion
  • Lifestyle
  • Property
  • Sport
  • Video
  • Death notices
  • Classifieds

Subscriptions

  • Herald Premium
  • Viva Premium
  • The Listener
  • BusinessDesk

Sections

  • Latest news
  • On The Up
  • Business
  • Opinion
  • Lifestyle
  • Property
    • All Property
    • Residential property listings
  • Rural
    • All Rural
    • Dairy farming
    • Sheep & beef farming
    • Horticulture
    • Animal health
    • Rural business
    • Rural life
    • Rural technology
  • Sport

Locations

  • Coromandel & Hauraki
  • Katikati
  • Tauranga
  • Mount Maunganui
  • Pāpāmoa
  • Te Puke
  • Whakatāne
  • Rotorua

Media

  • Video
  • Photo galleries
  • Today's Paper - E-Editions
  • Photo sales
  • Classifieds

Weather

  • Thames
  • Tauranga
  • Whakatāne
  • Rotorua

NZME Network

  • Advertise with NZME
  • OneRoof
  • Driven Car Guide
  • BusinessDesk
  • Newstalk ZB
  • Sunlive
  • ZM
  • The Hits
  • Coast
  • Radio Hauraki
  • The Alternative Commentary Collective
  • Gold
  • Flava
  • iHeart Radio
  • Hokonui
  • Radio Wanaka
  • iHeartCountry New Zealand
  • Restaurant Hub
  • NZME Events

SubscribeSign In
Advertisement
Advertise with NZME.
Home / Bay of Plenty Times

Rich rent returns bring investors in

By Julia Proverbs
Bay of Plenty Times·
31 May, 2013 10:00 PM3 mins to read

Subscribe to listen

Access to Herald Premium articles require a Premium subscription. Subscribe now to listen.
Already a subscriber?  Sign in here

Listening to articles is free for open-access content—explore other articles or learn more about text-to-speech.
‌
Save

    Share this article

Lower-priced properties in Tauranga are being snapped up as high rents make them an attractive investment for landlords.

L J Hooker Pyes Pa branch manager Craig Wilson said over the past six months rising rent prices had attracted property investors back into the market.

"It's not that difficult to get percentage returns of 7-8 per cent. Previously it was closer to 5-6 per cent," he said.

As a result there had been "good inquiry" on houses at the lower end of the market.

"There are more folk looking at investments as an alternative to bank investments, with rental prices booming a little bit," he said.

Advertisement
Advertise with NZME.
Advertisement
Advertise with NZME.

"Someone else pays your mortgage, effectively."

Simon Marton, managing director of Harcourts Advantage Realty Bay of Plenty, said a more stable global economy had given first-home buyers and investors confidence to buy.

"We are noticing that there is a bit more activity on cheaper housing. First-home buyers and investors who have not been in the market for the past four years ... are now in the market and looking," he said.

Advertisement
Advertise with NZME.


In terms of investment, cheaper properties tended to get a better return, he said.

Greg Purcell, of Ray White Mount Maunganui and Papamoa, agreed "yield has got a lot better".

"It's one of the positives to pull out of a recession. Property prices come down and interest rates come down," he said.

However, while lower-priced properties could pay for themselves as investments, they were less likely to increase in value over time. "Often it will never be any more than it is," he said.

"The more you can get into the upper realms of $250,000 to $300,000, when the market comes away the growth will be more substantial."

Ross Stanway, chief executive of Realty Services, which operates Bayleys and Eves, said investors were groups of people attracted to properties with low price tags. "Everything sells at a price. There are always people who are very restricted in their budget, therefore they have to purchase property in that price range if they are going to live in the property," he said.

There were also the "do-uppers" - people who had the skills and the time to renovate and onsell for a profit.

"When you have these groups of buyers there's always interest and activity at that end of the market," he said.

According to realestate.co.nz, the 10 cheapest residential properties (with listed prices and not including properties in residential care settings) were priced from $169,000 to $205,000.

Advertisement
Advertise with NZME.

The lowest-priced was a newly refurbished, one-bedroom home in Landview Rd, Parkvale, advertised as being able to attract $250 a week in rent, or $13,000 a year, with an approximate 7 per cent return.

The second cheapest, at $172,000, was a two-bedroom unit in Ngatai Rd, Otumoetai, with a private deck and fully fenced courtyard.

Of the 10 least-expensive homes in Tauranga, four were one-bedroom, three were two-bedroom and three were three-bedroom. Two were at Mount Maunganui, three at Otumoetai and the remaining four at Parkvale, Gate Pa and Greerton.

Save

    Share this article

Latest from Bay of Plenty Times

live
Bay of Plenty Times

Up to 50 people evacuated from homes after wild weather, clean-up efforts begin

11 Jul 07:33 PM
Bay of Plenty Times

'Powerful example': Mum overcomes addiction to build a life helping others

11 Jul 06:00 PM
Bay of Plenty Times

Bay home crowd rallies behind netball's Magic

11 Jul 05:00 PM

From early mornings to easy living

sponsored
Advertisement
Advertise with NZME.

Latest from Bay of Plenty Times

Up to 50 people evacuated from homes after wild weather, clean-up efforts begin
live

Up to 50 people evacuated from homes after wild weather, clean-up efforts begin

11 Jul 07:33 PM

The North Island is expected to get off to a wet start this morning, with lingering rain.

'Powerful example': Mum overcomes addiction to build a life helping others

'Powerful example': Mum overcomes addiction to build a life helping others

11 Jul 06:00 PM
Bay home crowd rallies behind netball's Magic

Bay home crowd rallies behind netball's Magic

11 Jul 05:00 PM
Tearful hunter admits shooting and killing friend

Tearful hunter admits shooting and killing friend

11 Jul 05:00 PM
Solar bat monitors uncover secrets of Auckland’s night sky
sponsored

Solar bat monitors uncover secrets of Auckland’s night sky

NZ Herald
  • About NZ Herald
  • Meet the journalists
  • Newsletters
  • Classifieds
  • Help & support
  • Contact us
  • House rules
  • Privacy Policy
  • Terms of use
  • Competition terms & conditions
  • Our use of AI
Subscriber Services
  • Bay of Plenty Times e-edition
  • Manage your print subscription
  • Manage your digital subscription
  • Subscribe to Herald Premium
  • Subscribe to the Bay of Plenty Times
  • Gift a subscription
  • Subscriber FAQs
  • Subscription terms & conditions
  • Promotions and subscriber benefits
NZME Network
  • Bay of Plenty Times
  • The New Zealand Herald
  • The Northland Age
  • The Northern Advocate
  • Waikato Herald
  • Rotorua Daily Post
  • Hawke's Bay Today
  • Whanganui Chronicle
  • Viva
  • NZ Listener
  • Newstalk ZB
  • BusinessDesk
  • OneRoof
  • Driven Car Guide
  • iHeart Radio
  • Restaurant Hub
NZME
  • About NZME
  • NZME careers
  • Advertise with NZME
  • Digital self-service advertising
  • Book your classified ad
  • Photo sales
  • NZME Events
  • © Copyright 2025 NZME Publishing Limited
TOP