My client was based in Auckland. He was looking for a cash flow positive property in a good location with minimal renovations needed. This is what we found:
I found him two attached units through a relationship with a local property agent. The properties are walking distance to town and are in a good neighbourhood that is easily rentable.
One of the units was fully renovated and the other was in reasonable condition, but could be renovated to add value and rent. I worked out that by spending approximately $30,000 and moving rent to market-level, he would lift the rent from $210 per week to $440 per week and the value by an additional $20,000. He purchased the properties for $830,000 before renovation. This property was settled at the end of January and I would be surprised if the client has not already reaped some market gains as units in this condition are not selling for under $450,000!
A few key things helped us in this multi-offer situation. One was offer conditions, which we put time in with our buyers before offers go in to cover off as much ground-work as we can and get the strongest possible conditions. This makes a difference when prices are close and finance is hard to get. We work closely with agents from traditional listing agencies, and I am sure they will have communicated to the vendor that our buyers are well prepared, pre-approved and serious.
This was a multi-offer situation and we believe there was a higher offer, or at least they were very close, and our preparation and conditions will have made a big difference.
Technology also helped! The client lives in Auckland and works very long hours. I was able to Face-Time with him when I viewed the property, record videos, meet with the building inspector during the due diligence process and help him work through everything.
Get in touch if you feel overwhelmed trying to compete in such a hot market from other areas. We are helping investors land great deals every week.
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