Multi-million dollar property buy-up

A bus load of 30 Australian women are heading to Rotorua with plans to snap up bargains in the investment property market.

Their predicted multiple purchases could inject millions into what has been an ailing property market.

The women are members of a group called Property Women Australia.

Judith Taylor from Newcastle, who is organising the tour, said the women weren't necessarily rich. Many were first-time home buyers who were choosing Rotorua ahead of the more expensive homes in Australia.

She said they would be attending a one-day property investors' workshop in Auckland before heading to Rotorua for two days on Sunday, March 22. They will spend time on Monday, March 23 being driven around Rotorua properties in a bus by Harcourts agents and property investor experts.

They will be looking at bargain properties - those under $200,000 - which had the potential to earn good rental returns.

Ms Taylor said while there would be no pressure on the women to buy, she expected several houses to sell.

"They may or may not buy while they are here but I expect they will buy later and many of them will not stop at one."

Ms Taylor said there were several reasons the investors were keen on Rotorua. These included:

* Bargain prices compared with Australia

* No stamp duty or land tax in New Zealand

* Properties had opportunities to add value by doing them up

* A favourable exchange rate

* Current low interest rates.

Ms Taylor agreed the buy-up had the potential to total millions. The properties will probably need doing up - creating work for local builders and painters - and the new owners would Rotorua property managers.

She said the buyers were also likely to return to Rotorua regularly with family members to check on their properties once a transtasman airport was built. Such trips are tax write-offs for the investors but will also generate more tourism dollars into the city.

Ms Taylor said the women were from all over Australia, including a 17-year-old from Northern Territory whose mother wanted her to get into the property market as soon as possible. She said none of the women were wealthy but all had dreams of owning properties - something which once accomplished did wonders for their happiness and wellbeing.

"A man is not a financial plan. We are not man haters but when women take responsibility for their own futures, they are doing it for themselves and their families."

The women's trip is timely because Rotorua experienced the lowest number of property sales in January in 18 years - with just 48 houses selling.

However, the latest figures for February are due out shortly and are predicted to show a big improvement.

Real Estate Institute of New Zealand Rotorua spokesman Ian McDowell said while it was good news Rotorua was seen as hot property by Australian buyers, he would prefer locals bought the houses.

"In the long run, they are better landlords than investors. For the Australians, it's just another property but locals have more affinity to them and they tend to look after tenants better."

Mr McDowell said he had also noticed investors picking up on Rotorua in recent weeks and was confident the figures released this week would look positive.

"Investment buyers are coming back into the market because the interest rates are down and these properties are showing good returns."

He said he had multiple offers made on one of their properties this week - something unheard of in recent months.

Harcourts sales consultant Trevor Cochrane, who will be looking after the Australian women this month, said investors in particular had been returning to the market in the past month because of the dropping interest rates.

Reserve Bank governor Alan Bollard is tipped to lower the official cash rate again tomorrow.