Housing guide picks out best rental returns

If you fancy investing in residential property, where would you put your money - Herne Bay or Murupara?

Doesn't seem much of a contest: top-of-the-range inner Auckland suburb sitting on the harbour against the tired remnants of a tough Bay of Plenty timber town miles from anywhere.

But, for investors, the dollars just might add up in favour of Murupara.

Latest statistics put Herne Bay at the top of the New Zealand house price ladder, with average home values of $1,541,722 attracting weekly rents of $1300 to $1600.

With that sort of money, an investor could buy 30 three- or four-bedroom properties in Murupara - the North Island's cheapest location - and pocket $100 to $120 rent for each, bringing in something like $3200 a week.

Bank that rent and - ignoring irritants like inflation, maintenance, insurance and rates - you will have recovered your initial investment in 10 years. Up in Herne Bay, the same exercise would take you 20 years or more.

The top and the bottom of the residential market is just one of the fascinating areas covered in Property Report, a new Herald liftout published on Monday.

The publication, free with your Herald each quarter, focuses on latest house price data assembled by QV, the country's biggest property information company. You will also find ways of calculating what your own house may be worth.

As well as detailed tables, the liftout features expert commentary on the real estate market. It also zeroes in on key areas, analysing their appeal, and pinpoints great places to buy.

And guess what - the most expensive sale in the country last quarter wasn't in Auckland (though the cheapest was in Murupara). Read Property Report on Monday to discover the upstart that trumped the Queen City.