Case Study: Hard work gets the yields

Posted 6 Jul '20

by Nick Gentle on
Article appears under: Case Studies, About Property Investment, Rotorua

This case study is about a property that was bought by Ricky and Alana, clients of ours through our Premium Buyers Service

Chris Sim was helping Ricky and Alana, who are based in Auckland, to look in Rotorua, when he identified a portfolio of properties up for sale from the same owners. The target property consisted of a 4 bedroom home with a small 1 bedroom second dwelling in Western Heights. 

I was involved with this purchase a little and visited the open home with our buyers. The excitement kicked in when an emergency last-minute meth test identified a positive result. That certainly spooked a few buyers but credit to our clients for sticking to their guns and understanding that most, if not all, problems are fixable.

From here I'll hand it over to Ricky and Alana...

"We engaged Chris Sim from iFindProperty as we had previously found properties to purchase, but didn’t have the confidence to take the leap. Chris helped us narrow down our criteria, and kept our expectations realistic with his market knowledge and our budget in mind. 

He found us the property we purchased and attended the open home with us. We checked for meth and it returned positive, so we had a more comprehensive test done... which came back really positive! We worked through what to do with Chris and Nick Gentle and ended up having the vendors approve an auction variation that they would rectify and re-test prior to settlement, leaving us a clean house and benchmark going forward. 

The 4 bedroom was generally in good condition as the carpets were replaced due to meth.  We did external house paint, kitchen cabinets and a tidy general tidy. Bringing it up to meet the healthy homes was the most expensive (heat pump, extractor fan and rangehood)

The second dwelling - one bedroom was in need of more hard work. Consents were lacking and that was just the start; it required a new deck, curtains, heat pump, range hood, new bathroom and to strip the wallpaper and paint. It is a lovely home now and is returning well.

Chris did all of the legwork, attended the auction and bid on our behalf. He answered all questions we threw at him, and he helped us understand the numbers.  We learned a huge amount from Chris and the iFind team which has put us in good stride for our next investment purchases going forward." 

Purchase Price $440,000
Renovation Spend $29,400
Weekly Rent $470 + $320 = $790
Gross Yield 8.75%

We would highly recommend getting in touch with Chris and the iFindProperty if you are in a similar position. Experienced and calm heads meant we bought a property we would have balked at in the past and had a great financial result."

Nick Gentle
Business Owner & Operations Manager
027 358 3855

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