Rolleston - its money in the bank!
Just on the outskirts of Christchurch, Rolleston is teaming with infrastructure, A lot of that came after the earthquakes because the land was so safe (TC1 land) which is the least likely to be affected in the event of seismic activity.
Rolleston has just built their sixth education centre as well as new pools, bars and restaurants.
The sub divisions are well developed, have lots of common areas, wide streets and a really nice community feel.
There is also an industrial park called the IZONE just on the other side of Rolleston which is filling up fast.
The IPORT industrial park has just been built by Phillip Carter who is a local rich lister. The IPORT will have a direct connection to the Lyttelton Port which of course is great from a logistical standpoint.
Information suggests that there could be as much as a billion dollars being invested into Rolleston over the next 5 to 10 years.
All of this amounts to increased population growth.
Infometrics, who provides industry, regional, and general economic analysis has ranked Rolleston as the third highest population growth in the country to 2023. Statistics NZ supports that number.
Over the last five years Selwyn district grew in terms of GDP by 6.6%. That’s the highest of any district in the country. That is a lot of jobs and population growth.
Out of 246 areas studied in Canterbury 5 Rolleston sub divisions were in the top 28 for median household income. Also it is interesting to note that Rolleston Southwest has the fourth highest median household income which is $108,000. It’s the fourth highest in all of Canterbury so you’ve got a lot of people moving there.
One key factor to a successful portfolio is buying properties that are affordable. Recently I took some property investment projects to Auckland to meet some interested investors. They could not believe that a brand new 4 bedroom house could be built for under $500,000… the same house would cost $750,000 in Wellington and $900,000 in Queenstown. Auckland would be a million dollars plus.
So I think over the coming years I expect to see some of our prices catch up to the rest of the country. They won’t be a million dollars necessarily but it’s important to remember we are undervalued here and I think there’s some good room for movement. Even if you compare Rolleston to the second largest township in the Selwyn district which is Lincoln, the median house price in Lincoln is about $50,000 higher.
So if you have limited usable equity in your owner occupier home you are going to want to use that to buy an investment property in Rolleston because it is money in the bank!