Commentator Olly Newland said buyers should take into account things such as which way the apartment faced. "Ones that look over the harbour or are north or northeast-facing are better than south-facing. Higher apartments are better than those on the ground level. One or two-bedroom apartments are better than studios."
Newland said it was important that buyers' lawyers looked through the body corporate minutes before they bought. That could signal whether there were any issues buyers should know.
Apartments can also work as rental investments. In the central, east and west parts of the city median-priced properties sell for about $250,000 and rent for $360.
Listed property and property funds
There are ways to maintain exposure to the property market without directly buying a property.
Financial adviser Liz Koh said people could choose to buy shares in a listed property trust or a company that would invest in property.
"There are lots of listed trusts that have exposure to different types of property, commercial as well as residential.
"When you're starting out, most people don't have enough to go into commercial property directly by buying a building but they can do it through a listed property trust."
Kiwi Income Property Trust had distributable income in the year ended March of $15 million, up almost a quarter on the previous year. Shareholders received 6.40c a share.
People can invest in a listed property trust with just a few hundred dollars by buying a small number of shares through a sharetrading platform. The ASB platform is relatively user-friendly.
Another option is to invest in a managed fund. Regular, small contributions can work out cheaper as brokerage is not paid. ANZ's Capital NZ Property Fund reported a one-year return of 9.5 per cent in September.
Retirement companies
Listed retirement companies are another way to get indirect exposure to the property market. There are three on the market: Ryman Healthcare, Metlifecare and Summerset Group. Oceania has been tipped to list, wanting to raise $300m.
Ryman Healthcare has been a strong performer since listing in 1999. Shares have risen from $1 in 2005 to $7.50 this week. Dividends have increased twelvefold.
Shares in Summerset are at present about $2.70. They have shed almost 20 per cent over the year but the company has expansion plans.
Investors can get into a retirement company investment with just a few hundred dollars.
Start building a diversified portfolio
Financial adviser Martin Hawes said it was vital that those who chose to rent long-term saved the difference. "A lot of young people think they can pay the rent and the groceries and live high on the rest. But they can't because they're going to have to pay rent long-term, maybe for the rest of their lives. They're going to need more capital."
He advised building a portfolio of a mix of shares, property trusts, bonds and cash.
"Most young people should be fairly aggressive. Most should be heavily weighted towards shares and property trusts."
Many investment advisers take on young clients without a lot of money to invest because over the long term their investments would grow. "You might start with $30,000, then spend six months saving another $12,000 then another six months saving another $12,000 or $13,000 and hand it over."
John Berry, of Pathfinder Asset Management, said: "Own shares, bonds, property and alternatives like commodities, but also within each class spread the risk.
"Own New Zealand shares, international shares, small companies and large companies.
"Don't focus on one single investment or asset class. International shares give exposure to a wider range of companies and industries than we have available in New Zealand."
Invest in property outside Auckland
Property in the regions may perform better over the coming years than an investment in Auckland, says commentator Rodney Dickens.
Many parts of the country have experienced annual price growth of less than 5 per cent as Auckland surpassed 10 per cent and in some areas, such as the Far North, values are still below their 2007 peak. That meant rental yields were a lot higher outside Auckland.
High-yielding areas include Kawerau, with a median purchase price of $150,000 and average rent for a three-bedroom home of $193; Kaikohe and Flaxmere.
Larger regional centres would be less risky because they were not so dependent on single employers but could still generate good yields. Whangarei has a median rent for a three-bedroom home of about $310 a week and median price of $263,750. Dickens said there could also be more potential for capital gain outside Auckland.
