Written from the trenches of Auckland real estate by Amit Sharma — Bayleys agent, 10+ years marketing experience.
Start with the numbers, not the property. Rent minus mortgage minus rates minus insurance minus management minus a 1% maintenance reserve = your weekly cashflow. If that number is deeply negative, you are not investing — you are speculating on price growth, and you need a much larger buffer.
Yield is a useful filter. In Auckland today, anything over 5% gross is rare and worth a closer look. Anything under 4% gross needs a strong capital-growth thesis to justify it.
Location matters more than condition. A cosmetically tired house in a good street beats a renovated house on a busy road every time — for both rent and resale.
Always model interest rates 2% above current. If the property still works at 8% interest, you have built a buffer for the next cycle. If it only works at today's rates, you have built a problem.
Get a property manager from day one, even if you think you can self-manage. The 7-8% management fee buys you neutral conversations, legal compliance, and your weekends back. The investors who burn out are almost always the ones who tried to manage three or more themselves.
And — talk to an accountant before you sign. Trust structures, LTC company structures, and tax treatment of interest deductibility all change the maths significantly.