As you can see, Auckland properties have lower yields than properties in the rest of the country.
But some properties fetch a lower yield; 25% of properties rent for 2.63% or below.
On the other hand, 25% of properties have a gross yield of 3.93% or more.
If you get a 4%+ gross yield in Auckland, you should be happy. You’re in the top 25%.
But, of course, it depends on the property type too.
While a gross yield of 4% is good for a growth property, like a townhouse, a 4.5% gross yield for a yield property would be pretty poor.
Here at Opes Partners we aim for a 4-4.6% gross yield for growth properties (houses and townhouses).
We then aim for a 5.5-6.3% gross yield for yield properties (dual-key apartments). These sort of properties earn a higher rental yield but don’t go up in value as fast.
