Case Study: Great yields in Hawkes Bay
Our client wanted to take advantage of the buoyant local market in the Bays, and even though she lived locally, she was frustrated at constantly missing out on the best deals. Often properties were sold long before they hit the market, snapped up by buyers in multi-offer situations within a day or two – she had decided it was time to leverage our negotiating experience, local relationships with agents, and ability to act quickly in a highly competitive environment.
Ready to go with finance approved, her criteria was cashflow positive 7-8% gross yield in a good street to attract quality tenants – a “set-and-forget” type of investment to match her and her husband’s busy lifestyles.
Within three days I got wind of a duplex “worst house best street” scenario and on advice our client put pen to paper immediately to lock up the deal (she had a suitable due diligence clause). She won the Flaxmere property in a multi-offer out of three other offers within $5K of hers, and the three bedroom home with great tenants currently paying $350pw was hers for $225,000 (after all costs). Simple investment, ready to go – a no-brainer – one of the best streets in Flaxmere, a quick tidy up and refreshing the property could easily increase the current excellent yield of 8.1%.
A builders report confirmed that the dwelling was sound, and the long term tenants were delighted to stay on. Our happy client is getting ready to go again! Why wouldn’t you, really!