Apartments perform well for investors as rental returns squeezed123RF Rents haven't kept pace with house prices in Auckland, which has made apartments a more viable investment option, some commentators say. ​Dwindling yields are prompting more Auckland property investors to consider buying apartments – but it comes with a warning that they need to understand what they are buying. While capital gains have been strong they are not guaranteed so most long-term investors look for ongoing rental return to back up their investments. Auckland Property Investors Association president Andrew Bruce said the biggest difference for investors buying an apartment rather than a standalone house was the body corporate component. "But the body corporate takes care of the insurance, power to common areas, maintenance and quite often the maintenance by a body corporate is at a higher level than you or I might keep our homes."

Source: Stuff July 04, 2017 05:26 UTC