Our client was based in Auckland and looking for multiple investments - specifically a multiple income property and a trade.
The property was a condemned house valued at section value. Over the course of year, our client had completed a full renovation of the
property before selling. Below are some photos of the property at purchase and after the renovation.
The deal
Condemned 3 bedroom home
Good location - easily rentable
PP of $35,000
Yield - 6.8%
We originally sold him the property for $35,000 as it was a shell of building. He completely rebuilt the property including rewiring,
re-plumbed, sub-floor work, walls and floors etc.
The property is in a good location within walking distance to town and all levels of schooling with many other good quality properties
surrounding it.
The rental appraisal at the time of purchase, price factoring in remaining work the buyer needed to do, gives a yield of 6.8%. The property
was a three bedroom 110sqm home and has potential for both a 4th bedroom and small minor dwelling on the rear of the property.
The vendor was happy to have made some money on the project and move onto another, while the buyer is happy with his new portfolio
investment.
We were able to meet in the middle to make both sides happy!
The coalition government has continued to reset some policies that affect rental property owners. In this article I summarize recently
announced changes for interest deductibility, brightline, pets and pet bonds, 90 day no-cause tenancy termination and fixed term
tenancies.
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Hamilton is a proven fantastic location to invest, providing strong long term capital growth and rental demand. Employment opportunities in the region have resulted in a population increase of over 23% in the last 10 years.
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