Dunedin: A Dream Destination for Property Investment

For those looking to make a good property investment, it is necessary to first consider the purpose of the purchase. For first-time buyers looking for their forever homes, property requirements will be very different to retirees looking to downscale. Similarly, purchasing a property for the purpose of gaining rental income versus buying a home to personally live in long-term will meet with different prerequisites.

The next consideration is area. The best property investments tend to be found in areas with lower purchase prices but higher returns. In other words, the purchase-to-rent or purchase-to-resale ratio should play in the buyer’s favour. In the current New Zealand market, this is not always possible, as many areas are experiencing a significant rise in properties’ sales prices but lower comparative growth in their rental markets.

However, one city that continues to see generally good affordability-to-yield ratios is Dunedin. While not entirely immune to the country’s current exponential rise in property prices, the city has managed to stave off the worst effects thereof, making it a generally easier market to enter than others. Dunedin also boasts all necessary amenities, including an airport, good schools, and growing businesses to further cement it as a viable area in which to live and invest.

For buyers looking for investment properties, Dunedin offers options to enter the student or general rental market. Both have their own pros and cons, and different properties would be better suited to one or the other rental type, so investors would need to do their homework before making their final decision. In comparison, for buyers looking to invest in long-term family homes, the city offers many affordable housing options located in safe, child-friendly neighbourhoods. Thus, although Dunedin real estate is currently experiencing more demand than supply, it is still well-situated as one of New Zealand’s better investment destinations.