Landlords from five Dunedin suburbs are reaping some of the best rental returns around the country, but for anyone seeking capital gain, rewards from those are slim.
The Westpac ''property investor report'' covers Auckland, Tauranga, Hamilton, Palmerston North, Wellington, Christchurch and Dunedin.
Westpac's general manager, retail bank, Ian Blair, said the report helped investors identify market investment trends, with 35% of investors surveyed recently saying their biggest challenge was finding a property with a good return.
''Investors also need to be crystal clear on why they are investing - for short-term gain or are they in it for the long term,'' Mr Blair said.
Glenleith, at 8.4%, made up more than half of the country's top 10 list for three-bedroom homes delivering gross rental yields.
Woodhaugh ranked third at 8.2%.
Ranked fourth, sixth and eighth respectively were Port Chalmers at 8.1%, Caversham 8%, and Burnside at 7.5%.
Dunedin's best capital gains continue to be strongest in the student area of North Dunedin, at 4.4%.
The top Dunedin suburbs for capital gain on three-bedroom homes were Musselburgh at 3.9%, St Clair at 3.7%, Abbotsford at 3.6%, Roslyn at 3.2% and Mosgiel at 2.9%.
In comparison, Auckland's capital returns are eye-watering. Auckland suburbs rank in all places from first to 59th for capital gain, the least delivering 11.9% and ranging up to 17.5%.
Mr Blair said investors looking for capital gain often accepted lower cashflow in the expectation of an increase in the value of property, mostly based on location and desirability.
