Taranaki is a unique region with boundless potential. Not only does it have a growing economy but it offers one of the best lifestyles available in New Zealand. Combine its small ski-field with the rolling west coast surf, and almost every board sport is covered. From tramping the many tracks around the iconic mountain to enjoying galleries, coffee shops and festivals, Taranaki really has something for everyone.
As the region attracts external investment to develop Hydrogen fuel opportunities, while also investing in attracting more tourism and creating an ambitious 50-year regional growth plan, the demand for housing has increased.There is a strong demand across the region for affordable and luxury rental properties, which means when rental properties become available there is no shortage of people ready to snap them up. Sadly, in this region, there are simply not enough rental properties to go around.
While provincial regions may not capture the premium returns that large cities offer, they provide a ready base of people willing to commit to being good tenants. Taranaki has some excellent people looking to rent a good home, but a shortage of available properties leaves many disappointed
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Taranaki hotspots
Taranaki is such a beautiful region with so much to offer including mountain walks, amazing surf, and a vibrant, creative culture - why wouldn't you want to live here?
The main centres in Taranaki are New Plymouth, Hawera, and Stratford with many smaller towns surrounding the mountain and coastlines, covering many different price points and investment opportunities.
Built on 'black and white gold' Taranaki has been known for many years as being New Zealand's heartland for oil and dairy (milk). In recent years both of these industries have had a spotlight shone on them, and Taranaki has been forced to find new opportunities to further the region's growth. However, these industries still influence property decisions locally and this can impact the types of property investments people make.
For example the farther you venture from the coast, the more of an impact the dairy industry will have on the towns dotting the rolling green hills in the shadow of the mountain. Curve back towards the water and you'll find that Fonterra, New Zealand's largest dairy exporter, has a facility near Hawera. Many businesses in Hawera support agricultural industries, although there is emerging growth in professional services and business support.
Let's look deeper into the areas within Taranaki, and the appeal for investors in each. We have selected a few of the prominent towns in Taranaki and why each stands out.
Living in Hawera
Hawera is the largest town in South Taranaki. As mentioned before it has the Fonterra processing facility nearby, which supports a myriad of jobs. The town itself is a growing community on the main road between New Plymouth and Wellington (via Whanganui).
Hawera has a great median home value that currently sits at $279,200 with 5% annual growth. The median weekly rent is $280.
Living in Stratford
Known as the heart of South Taranaki, Stratford is the only town in the Stratford district. Surrounded by some of the best farming in New Zealand - it has a prominent rural feel and community. Stratford is also home to a wide range of sport and recreational activities including a golf course, a tennis club, and a number of parks and walks.
Again, Stratford has a great median home value currently sitting at $284,300, with 7% annual growth. The median weekly rent is $260.
Living in Waitara
Approximately 16km northeast of Central New Plymouth sits Waitara, a residential suburb of New Plymouth with a strong sense of community and coastal feel. Waitara has many parks and reserves, so it is a wonderful area for families to enjoy plenty of recreational outdoor activities.
Waitara has a slightly higher median home value of $297, 500 with an annual growth rate of 5%. The median weekly rent is $300.
Living in Opunake
This blissful coastal town remains untouched by the expansion and hurried growth of Taranaki. Opunake offers a relaxed lifestyle and is home to one of the most popular beach and swim spots on this side of the coast (and supposedly the best fish and chips as well).
Also boasting a really affordable median home value of $239,100 at a current rate of 5% annual growth. The median weekly rent is $240.
Living in Oakura
Oakura is a very popular coastal suburb 15km south of Central New Plymouth. It has stunning views, fantastic surf, and some great little cafes and eateries. With an array of both luxury and family homes, Oakura is a very desirable suburb.
The sought after reputation and luxury homes that you will find in Oakura is reflected in its higher median price point of $747,250 which has remained steady with a positive difference in RV and end sale price. The median weekly rent is $500.
Living in New Plymouth
New Plymouth is a bustling, vibrant city with plenty of culture and heritage. The city has a fantastic array of shopping, cafes and restaurants with plenty of outdoor recreational activities such as the botanical gardens and the coastal walkway. It really is a city to watch out for.
The median price in New Plymouth currently sits at $543,050, which has remained steady with a positive difference in RV and end sale price. The median weekly rent is $380.
How to ensure you have reliable tenants
Everyone wants to have the best tenants. You want to know that your investment will be looked after. There are a few simple things you can do to help.
The law
In New Zealand, Tenancy Services is the governing body where you can find information relating to your rights and responsibilities as a landlord, tenant or title owner.
Insurance
You must have Landlord insurance. Tailored specifically for landlords, this type of insurance protects your property from any damage or loss of rent due to any event that was outside of your control. Moneyhub is a great online resource that has advice on what Landlord insurance is and why you need it as well as comparing the policies of several major insurance providers so that you can compare what each policy includes and what the premiums are, all in one place. Again, ensure you seek out professional advice on what the best insurance is so you can ensure maximum protection.
Property management
This can seem very overwhelming, especially if you are a first-time investor. This is where we can help. As experts in property management, we can take care of everything for you including a free rental appraisal (so you know how much you can charge for rent), finding suitable tenants, monitoring property maintenance through regular inspections, resolving any issues, and financial management.
Have a read of our blog "10 reasons why you need property management for your rental" as well as downloading our guide, for more information on how we can add value to your property investment journey.
