Case Study - Rotorua 7-8% Gross Yield and Potential to Add Value
Our clients iFindProperty June 2018 ready to buy in Rotorua.
With finance confirmed and a budget in the low $300,000 range, their key criteria was a property that generated 7-8% gross yield with potential to add value in the future.
We had just the property that matched their needs and Won & Lina snapped it up after one viewing.
The three bedroom house in the popular suburb of Mangakakahi had a selling price (inclusive of iFind fee) of $342,300 and a rent appraisal of $450 - $500 per week. That gave a potential 7.5% yield ticking the first box.
The house was sitting on a large 1,366m2 section. A surveyor confirmed the property was subdividable and costs to do so would amount to approximately $50,000. Another option was to convert an existing double garage with utility room at the rear of the section to a subsidiary dwelling. A quote for doing this came in at $90,000 and rent for the subsidiary was appraised at $300 per week. Won & Lina liked the option of a subsidiary dwelling, as shown below that would potentially increase their yield to 9%.
Second box ticked and mission accomplished.
|Potential Gross Yield||9%|