Recent Rotorua Deals
Here are some recent examples of deals that I have found for my clients via our Premium Buyer Service.
Many buyers prefer to wait for listings to appear, however those who commit to having us source deals are consistently and quickly getting good results as we can quickly identify good deals and secure them for buyers.
Case Study 1
A property hit the market for an exceptionally low price of $285,000 for a four bedroom, one garage home in reasonable area.
I immediately made contact with the vendor and arranged a viewing (along with many others). The property looked ideal so I arranged a Sale & Purchase Agreement on the spot, paying $5,000 more than asking price, which was accepted.
I had a Premium Buyer client in mind before I viewed the property and since we have a specific brief for each client and communicate a lot I was confident it was the right fit for them.
We assisted them in their checks, getting quotes and arranged for the work to be done on their behalf by our contacts so there was no need for the new owner to get their hands dirty or worry about managing renovations from out of town.
During due diligence the building report shows some water damage in bathroom, I negotiated the price down by $5,000 the buyer was able to carry out a full bathroom remodel for $7,000. We also added a new energy efficient fireplace for $4,000.
- Original rent: $285 per week
- New market rent: $420-$450 per week
- Initial GY 5%
- Post purchase costs including IFP fee: $306,750
- GY:7.6% and market value now estimated to be $385,000 so approx $78,000 equity.
The tenant stayed on at new rent so no downtime. Great result in a market where good opportunities are very thin on the ground.
Case Study 2
The property was a block of 4 x one-bedroom units located close to Rotorua CBD,
Purchase price was $645,000 with a registered valuation $745,000
Current Rent: $775pw
In a hot market you often need to create your yield. A full renovation was recommended and done and in each unit a small lounge window was removed and replaced with double glazed ranch sliding door and wooden outdoor deck with trellising to provide privacy between units.
Light yellow walls were repainted with Black/white ceiling and walls with dark blue doors. Carpet & vinyl, bathroom vanities, toilet pans, taps were replaced as required.
One tenant vacated their unit temporarily while it was renovated (into one of the other units).
All renovations were carried out remotely while new owner was on beach in Fiji, with renovation crew being sourced by local IFP property finder.
- Renovation costs ~$52,000
- New Rent: $1,180
- GY $8.8%
Please contact me today if you are tired of watching the market move along and want to take action.