Investment Property in Christchurch

Invest in Real Estate in Christchurch

Investment Property in Christchurch
Investment Property in Christchurch

Christchurch property investment can be a worthwhile venture if you are selective with the areas you choose to invest in. If not, you could find that your investment suffers due to low rental yields, dwindling demand, and slow property price growth in many parts of Christchurch .

Search Map of Christchurch Investment Real Estate

Christchurch ( KRYSSE-church; Māori: Ōtautahi) is the largest city in the South Island of New Zealand and the seat of the Canterbury Region. Christchurch lies on the South Island’s east coast, just north of Banks Peninsula on Pegasus Bay. The Avon River / Ōtākaro flows through the centre of the city, with an urban park along its banks. The city’s territorial authority population is 389,300 people, and includes a number of smaller urban areas as well as rural areas. The population of the urban area is 377,900 people. Christchurch is the second-largest city by urban area population in New Zealand, after Auckland. It is the major urban area of an emerging sub-region known informally as Greater Christchurch. Notable smaller urban areas within this sub-region include Rangiora and Kaiapoi in Waimakariri District, north of the Waimakariri River, and Rolleston and Lincoln in Selwyn District to the south.

The first inhabitants migrated to the area sometime between 1000 and 1250 AD. They hunted moa, which led to birds’ extinct by 1450, and destroyed much of the mataī and tōtara forest. The first iwi to settle the area that would later become known as Christchurch were the Waitaha, who migrated to the area in the 16th century. They were followed later by the Kāti Māmoe, who conquered the Waitaha. In the 16th and 17th centuries, the Ngāi Tahu migrated to the area and subjugated the Kāti Māmoe. Over time Ngāi Tahu would develop a large pā based around Kaiapoi, which was a major centre for the trade of pounamu.

Christchurch became a city by Royal Charter on 31 July 1856, making it officially the oldest established city in New Zealand. The Canterbury Association, which settled the Canterbury Plains, named the city after Christ Church, Oxford. The new settlement was laid out in a grid pattern centred on Cathedral Square; during the 19th century there were few barriers to the rapid growth of the urban area, except for the Pacific to the east and the Port Hills to the south. Agriculture is the historic mainstay of Christchurch’s economy. The early presence of the University of Canterbury and the heritage of the city’s academic institutions in association with local businesses has fostered a number of technology-based industries. Christchurch is one of five Antarctic gateway cities, hosting Antarctic support bases for several nations.

The city suffered a series of earthquakes between September 2010 and January 2012, with the most destructive occurring at 12.51 p.m. on 22 February 2011, in which 185 people were killed and thousands of buildings across the city suffered severe damage, with a few central city buildings collapsing. By late 2013, 1,500 buildings in the city had been demolished, leading to ongoing recovery and rebuilding projects. The city later became the site of a terrorist attack targeting two mosques on 15 March 2019, in which 51 people were killed, and which was described by the Prime Minister, Jacinda Ardern, as “one of New Zealand’s darkest days”.

The financial stability of Christchurch has translated into a real estate market that rewards forward planning and a willingness to look beyond areas of traditional affluence.

 

Buy to Rent in Christchurch

 

Renting out your Christchurch buy-to-rent investment property can grow wealth and income.

 

Whatever your goals with investment property in Christchurch are – preparation is key.

 

  • Set goals based on how much rental yield will be required and the local rental yield rates in Christchurch and be prepared to change your initial outlook.
  • Thoroughly research the Christchurch location with a special emphasis on fringe areas outside the main Christchurch metropolis that may be valued lower than their better-known neighbors. Rental yields of around 5% are still attainable in certain areas of Christchurch.
  • Ensure that your target investment property in Christchurch appeals to professionals. This is a demographic that ensures maximum income and low voids.
  • Finding and vetting suitable tenants is a job ideally left to the professionals. Working with an established letting agent with local knowledge and experience of property legislation will give you the best chance of success.

 

With our expert guidance, investing in Christchurch provides the secure knowledge that your money is working harder than it would in a local Christchurch bank and that future generations of your family will be left with substantial capital growth assets.

 

We are always happy to advise on buying investment property in Christchurch, where we have been established for over 35+ years. Physis Realty has been a firm fixture in the Christchurch property market through good times and bad. Our experts have seen it all and our portfolios continue to outperform.

Flipping Investment Property in Christchurch

Flipping property in Christchurch

 

Flipping property is when we advise clients to buy a Christchurch property below market value, renovate it and then make a profit by selling it at a higher price, all within a few months, and often before the Christchurch market has a time to react to the renovation.

 

The Flipping Strategy in Christchurch

 

Investment property flipping in Christchurch is a simple strategy. You find a property that is in need of renovation from our list and purchase it for a low price. These type of Christchurch real estate investments are sometimes referred to by professionals as ‘distressed’ Christchurch real estate.

 

What is distressed Christchurch property:

 

  • Christchurch property in need of renovation
  • Christchurch real estate with a change of purpose and use
  • Oversold Christchurch property
  • Bank repossessions in Christchurch

Put simply, long term investors in Christchurch purchase the property, renovate it and make it a lot more attractive to potential buyers.

 

Calculate profit that you make from Christchurch investment property flipping:

 

Final Selling Price less Cost of Purchase less Costs = Profit

Here is an example:

Christchurch property purchase price: $220,000

Renovation costs: $20,000

Other costs: $25,000

Property sale price: $400,000

Profit: $135,000

 

Experienced property developers in Christchurch use a minimum profit value of 22% when looking at potential Christchurch projects.

 

The reason for this is because there are lots that can go wrong in Christchurch property flipping and working on a potential margin of 22% should still leave a good margin of error.

 

Invest through a Fund in Christchurch

 

Property Secured Investments is a Private Equity fund that invests in Christchurch and many other towns and cities across Europe. The fund is only available to Sophisticated Investors and closed to United States Citizens. While this is not an offer or promotion of the fund, more information can be found at the website

Luxury Property in Christchurch

For luxury property investors hoping to add a superb property in Christchurch to their luxury real estate investment portfolio, Physis Realty is a trusted partner.

 

A world leader in luxury real estate with a portfolio comprising some of the most sought-after real estate in Christchurch, Physis Realty caters particularly to high net-worth individuals and families. A luxury real estate investment in Christchurch should be entrusted to only the highest-quality agency.

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