TARGETING YIELDS THE TOP 20

Yields. It’s not a concept that has been a hot topic in the investing space in recent years. Rather the focus has been on capital gains and reaping the rewards of the spectacular growth the market has seen. Yet, as any savvy investor knows, decent yields are critical.

But now it is time for yields to take their place in the sun. That’s because the property investment landscape has changed. Despite ongoing price growth in certain markets, most commentators believe the property cycle has peaked.

Add in a slew of recent policy changes which are set to increase costs for many property investors and it all makes the prospect of a high yielding, cash flow positive property very attractive.

It also means the time is right to conduct our regular investigation into where in New Zealand the yield hot spots are. To that end, CoreLogic has isolated the 20 suburbs nationwide that return the best yields, based on their median values and median rents, and we talk to local experts to find out more about many of them.

First up though, it is worth examining why yields are so important. Basically, it’s because the yield on a property determines cash flow and an investor’s ability to pay for the mortgage