Thanks for giving me the opportunity to ask a question. I am interested in gaining a new perspective on my current situation. I own an Auckland city apartment which is cash flow positive. Earlier this year I purchased a four bedroom house in Otahuhu for $359K. I live there with a couple of friends. What is your opinion of Otahuhu? I chose Otahuhu because of its relative affordability, older style homes and large sections. Am I being overly optimistic or simply foolish about the area? The reason I ask is because I am interested in acquiring a third property for rental investment and am not sure which type of property I should select. I am wondering whether it is wise to purchase a 3 bedroom house in Otahuhu for around $300k or whether I should go for a unit in a better suburb. Much appreciate your time.
Otahuhu has some very nice areas and is one of the more popular South Auckland suburbs. I owned several buildings in the main street over the years as well as flats (Hall Ave, Great South Rd, Walmesley Rd, Atkinson Ave etc) and found it all very profitable most of the time (there were some horror stories but that’s one of the hazards of the game).
Whether you buy in Otahuhu again or elsewhere all depends on the bargain you get.
Let the deal will drive where you invest next- not you forcing the matter. A unit in a better suburb all depends what you call “better”. A good 3brm house is always preferable over a unit but spread out and look and learn. The aim is surely to make money so that is must be your goal. Which suburb and what it is come second.
Some of my clients like buying up in one area because they get to know it well, while others spread around to get balance and reduce risk. So long as you buy well and keep away from bad areas and bad properties you will come to little harm.