Our client's brief was straightforward - to find a good investment property with development upside to increase cashflow & yield for
passive income. Even though our client did not have any previous development experience, they were still up for the challenge and were
looking for something easy and possibly a smaller project.
Three bedroom home
Total purchase price (including iFindProperty fee) = $972,151
Gross yield (as-is) = 3.4%
Development cost = $230,000 - $250,000
Estimated Rents - $625 + $500 = $1,125 per week
Gross Yield = 4.7% - 4.9%
We found a great 3-bedroom property (renovated only a few years ago) on a very quiet street of a West Auckland suburb, Glendene. The
property was marketed to sell via auction and it was situated in Single House Zoning (Auckland Unitary Plan). It lacked competition from
developers for this reason, and as a result, was passed-on at the auction.
With strong knowledge of zoning rules, we knew this would be a
perfect opportunity for our clients to secure the property under a conditional contract and investigate to either build/relocate a minor
dwelling on the site as it offered easy access to public stormwater and sewer connections (located on-site). This would allow for both
equity creation and cashflow increment by having two dwellings on single title!
As soon we got the property under contact, we worked with our team of builders and development specialists to validate the potential this
site had to offer. The property had deferred maintenance, however we put a plan in place with the property management company on behalf of
our clients to have this done over a period of time so our client can maintain the rental cashflow during this time. We also introduced our
clients to meet with development specialist and build companies to understand the feasibility, process, cost and time frames of the new
It's not just about finding a deal, to truly grow as an investor you need to plan towards your end portfolio and work with people who can help you move towards that vision. iFindProperty has a service that achieves that for clients, and we are excited to share it with you
As an accountant is not a place for my personal political opinions, but professionally speaking I’m pleased with this result, and cautiously
optimistic we might have a friendlier tax environment for the property sector for at least a few years. But what does this mean for property