Case Study - Rotorua 7-8% Gross Yield and Potential to Add Value
Our clients approached me in 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.
I 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%|
We are out-of-town young investors and needed a lot of local knowledge and support.
Margie from iFindProperty has been immensely helpful from the start.
As it was difficult for us to travel to Rotorua, she has been very accommodating so we could see as many houses as we could that suit our budget/need.
She had a chat with us to find out exactly what we were looking for and made the whole process very smooth.
We were extremely happy with the process and the result we got dealing with Margie and wouldn't hesitate to recommend her to anyone else.