Latest data shows which locations offer the highest rental returns in NZ
Gisborne, followed by Otago and Manawatu/Wanganui were the best performing regions for residential rental property investment in January, according to data by Realestate.co.nz.
Gisborne returned an average of 5.78% on residential rental property in January, based on an average asking price of $258,515. Otago returned 5.54%, and Manawatu/Wanganui returned 5.12%. The national average for rental property returns for the month was 4.10%.
The figures are based on a basic calculation of average asking price vs weekly rental price, and excluding all external costs. The rental property ROI data was calculated by comparing the average asking price of properties for sale by region across New Zealand in January 2016 with the average annualised rent in each location.
The data assumes 100% rental occupancy, and does not account for inflation, mortgage interest payments or expenses such as property management or maintenance costs.