Actually, can a mod please change the thread title to "CBD apartment average body corp fees?".. I was thinking along the lines of an on-site manager, not a rental property management agency when I wrote it..
Whether you seek out a property manager should be dependant on exactly how many properties you already own - You're bound to get charged more for the managing of one property than what you would if you had more
And if you're just getting a property now you may as well manage it yourself to get a feel for how it works - it helps when evaluating the services of property managers later on.
I'm not sure about the market in auckland, although its most likely that the capitalization rates rise higher in the CBD and forecasts predict it will be so till next mid year.
I've done the maths on a few houses but the rental return is better in inner city apartments, plus the apartments cost less.. eg compared to the one in my first post, I worked out the return on a $135K studio in town and it was 8.4% gross. I'd be able to pay off that mortgage in under 10 years compared to the one in the suburbs.. I'd like to own something outright before buying any more investment properties.
But then there's the whole immigration issue and shitloads of apartments being built now in the CBD. I posted a thread about that a while ago. I think the supply will outstrip demand.
I have a Very Nice studio apartment (in mine and other peoples opinion) in Kitchener Street which I bought for 230,000 18 months ago. It was being rented for 350 a week then. Possibly more now but I dont know coz I live in it :+) So you can do the math on the yield if you want.
Body corporate fees are about 3300 a year. This is not cheap but not the dearest I've heard of either.
Would agree that yield on inner city is higher but prices dont tend to rise as much as houses in inner suburbs. I was talking to the guy who owns a couple in my building and he doesnt think he's had much capital gains in the last few years but hes very happy with the income stream.