Anne Gibson

Property editor of the NZ Herald

Investment project to create landlords

Apartment expert Martin Dunn says people should invest in property.
Apartment expert Martin Dunn says people should invest in property.

A specialist apartment real estate agency boss is starting up a new business to encourage people to become landlords by finding, buying and managing Auckland residential properties.

City Sales managing director Martin Dunn has launched City Sales Investment to buy properties in the $450,000 to $700,000 range.

Dunn said City Sales would research, source, evaluate, negotiate, buy and manage "prudent investment opportunities" in Auckland, steering clear of some areas.

Investors in the new business would be strongly advised to avoid parts of Auckland, including Flat Bush and Albany "because they're beside greenfields so there's a poorer intrinsic land value and they have a lot of leaky homes".

Mt Eden and St Heliers would be too expensive, Dunn said.

Targets would include Mangere "because they don't have streets, they have boulevards and very attractive topography" and would enjoy tremendous job growth from Auckland International Airport's new runway and terminal expansion.

"I don't recommend Panmure or Glen Innes because although they're very attractive suburbs, almost all the houses are state or ex-state so you won't be able to get a culture change like Pt Chevalier or Westmere.

"They will only ever be ex-state houses and there's no choice. Also, not in the heart of Otara or Clendon, which are Auckland's poorer areas, but I'm interested in Mt Wellington, because of the infrastructure change with Sylvia Park and Lunn Ave.

"I'm very interested in Beach Haven and Birkdale with a ferry service and three-road access. Belmont and Bayswater are too expensive," he said.

Shaumbeel Eaqub, NZIER principal economist and a housing investment sceptic, liked Dunn's scheme.

"Looks like a good idea to me. People already invest in housing, why not try and professionalise it? I wonder how this would compare against a listed property vehicle because I think that is what it will try to replicate in essence," Eaqub said.

Dunn said superannuation was just under $367 a week for an individual and $565 for a couple, "enough perhaps for a tank of gas and a weekly grocery shop with a few dollars left."

He remains suspicious of the sharemarket and said property was the best investment class.

- NZ Herald

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