SuperCity yields improving
That’s according to Barfoot & Thompson director Kiri Barfoot who says the average Auckland rental property is now delivering a gross yield* above most mortgage interest rates.
“The gross rental yield for the typical Auckland rental was 3.27% through April and May, when we also saw many special fixed mortgage rates dip under 3.00% to historic new lows.
“This means we’re seeing a balancing, even a shift, between the cost of borrowing and the potential gross gain on a rental property.”
Barfoot & Thompson calculates the gross yield figure by comparing the average annual revenue from three-bedroom tenancies to the average price of three-bed homes sold by the company over the past six months.
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