Even with the recent changes announced by the government, our numbers indicate this property will be around $4,000 cash flow positive from year one on interest only lending at a 2.5% interest rate.
Christchurch is widely regarded as being the most under-valued city in New Zealand with the greatest short term price growth potential.
The original home is a well laid out, solidly constructed Summerhill stone home with lots of potential.
There are three bedrooms, a family bathroom with shower and bath, separate toilet and separate laundry.
An added upside is the potential to increase the returns and add value by re-painting the inside, changing to LED light fittings and modernizing the kitchen. We can introduce you to good local tradesmen and a property manager who can manage the project as well as gain Healthy Homes compliance for you.
The compliant wood burner will greatly add to the appeal for tenants while keeping the house warm and dry. Being brick and tile with aluminum joinery there should be minimal maintenance costs whilst returning $400-450pw.
Built approximately six years ago with linear weatherboard, fully double glazed and sunny, this 2 double bedroom home should be very low maintenance whilst returning $390-420pw
An open plan kitchen and living room fitted out with quality chattels includes plenty of storage, modern bathroom services with gas hot water, and a large macrocarpa deck will make this easily rentable.
The cavity sliders throughout create an open uncluttered feel and smart wiring and gas hot water will keep the tenants happy.
A wheelchair ramp from the carport adds to the appeal for certain tenants.
Using the mid range of the rental appraisals gives a gross yield of 5.9% on the purchase price of $737,195 with room to increase this yield further. Easy care section and low maintenance through out makes this a perfect dual income investment.