Description

It has been a long time since we have seen properties that offer a 7% gross yield in Auckland! These brand new off-the-plans townhouses not only look great, they have been cleverly configured to return two rental streams from one dwelling.

A dual-key property means you are buying one legal title, which has been separated internally into two rental streams. The main entry flows into an internal landing, from where two lockable doors lead to spacious internal units. On one unit, the smallest, these comprise two studios, while the rest are 1br layouts with separate living and bedroom areas, one with a full kitchen and one with a kitchenette.

Because you are buying one legal title, there are not only big savings to you on a lot of the costs associated with building (such as development fees), over time you pay one set of rates, one body corporate levy etc.

Investment drivers:

• Great location suiting a range of tenancies; standard rental or AirBNB
• As a new build, investors only require 20% deposit (80% LVR)
• Configured for cashflow: An equivalent priced "regular" 2br townhouse would usually rent for $650pw, while these properties are appraised to rent for $950-$1,000pw.
• 7% gross yield in Auckland for a brand new townhouse (4-5% is what we often see for non dual-key options)
• A dedicated short term (AirBNB) rental agency has appraised the property to return a total net income of between $1,100 - $1,400pw after fees - depending on the unit and car parks. For a similar spec and location, a standard 2 bedroom / 1 car park townhouse they estimate $800 net income per week after fees.
• Blinds and furniture packages (a must for short-term lets) available, meaning finished to “tenant ready” completion. 
• Property managers have commented that 1 bedroom rentals are in high demand, likewise the AirBNB agency reports more demand for 1 bedroom units.
• Economists are predicting interest rates to start to decline later in 2024 and for that to continue in 2025. We ask investors to do their numbers as of today, however this would mean the interest rate you settle at on completion would be lower than today, and your cashflow would improve.
• Ideal for blending personal use with investment. Own your own place in Auckland, while earning a constant rental (or AirBNB) income
• This is a townhouses development, meaning construction should take less than 12 months from breaking ground and completion is due by late 2025
• Brand new is ideal to depreciate chattels and increase your cashflow further.
• The development is limited to just 17 properties

We have a long relationship with the experienced people behind this project and have worked hard with them to help solve the Auckland new build investment problem with a clear focus creating a high yield, without compromising on rentability.

Three property managers who all have experience in managing dual-key properties have provided. All are confident in the demand and appraisals are enclosed in the information memorandum (IM).

Similarly, a full-service AirBNB letting and management service has given us some projections and can assist with furniture and interior decorating. 

The numbers are very good for brand new, and outstanding for Auckland today. With interest rates now tipped to fall much sooner than had earlier been indicated by the RBNZ, projected cashflow should improve by completion so the timing couldn't be better.

A full information memorandum is available with:

• Three written independent rental appraisals for regular tenancy
• One written independent appraisal (soon to be 2) for full service short-term let management
• The full spec
• Details and budget of the body corporate
• Available units, pricing, carpark details and appraised rental yields on each unit.
• Frequently asked questions about how dual-key units work

What to do if you are interested:

• Step 1: Use the contact form on this page, or email info@ifindproperty.co.nz to request a copy of the information memorandum
• Step 2: We will send this to you and book a call to discuss the property where you can reserve your unit.