Rotorua has been described as a "cash cow" for property investors as rising rents and affordable house prices coupled with low interest rates are drawing their attention, according to an article in the NZ Herald.
Investor interest is coming from Tauranga as well as Auckland with Tauranga Property Investors Association vice president Simon Darmody saying its members were looking to Rotorua because house prices were "significantly cheaper".
Rotorua Property Investors Association president Debbie Van Den Broek said the city was "finally being recognised as a great place to invest".
And Tauranga property investor Lindsay Richards who owns nine rentals in Rotorua had said returns of up to 10 per cent were a possibility.
"Rents rates have gone up quite nicely but if you have got a property and are not getting capital gain then you have to have a decent return or there is no point in having it."
Richards recognised the increase in demand after advertising a two-bedroom flat in Rotorua three weeks ago and receiving eight quality responses over five days.
"It's always been harder to get a quality tenant in Rotorua but it has picked up a hell of a lot."