SHINING A LIGHT ON YIELDS

Residential property remains the most popular asset choice for investors, especially those who are looking to fund their retirement. Capital gains are what hits the headlines in mainstream media, but for many property investors, buy-and-hold is the go-to, with a focus on yields.

In a nutshell, yields are a measure of rental income a property generates against its purchase price. Experts claim properties with high rental yields are best for investors looking to boost their cashflow – ideally, a net yield of above 5% as this shows stability in the rental income.

CoreLogic’s latest data shows the highest gross yields across the country are on the West Coast in the Grey District – Runanga 11.8%, Cobden 10% and Blaketown 9.7%.

Taranaki, Rotorua, Far North, Kaipara, Buller and South Taranaki Districts are not far behind with yields ranging from 8.1% to 7%, compared to paltry yields of 3% in Auckland.

But the highest yielding properties are