[SOLD] Starter Investment with Potential 10.3% Gross Yield and 10% Equity
89B Pohutukawa Drive, Owhata, Rotorua - $105,350
New build in 2011, double glazed three bedroom home, overlooking farmland.
The home was completely rebuilt in 2011 after a fire destroyed the old home. Nothing needs doing and the tenant has just moved in from down the road and really wants to stay.
Double glazing keeps this house very warm (possibly the only home in the street with double glazing) with insulation and a heat pump this house will be popular for tenants on a tight budget.
But WAIT before you inundate us with calls wanting to buy at this great yield, no maintenance home please read on.
This house is not in the best part of Rotorua, it is set in our lower socioeconomic area. There are some residents who walk around with colourful patches on their jackets. In the past when there was an oversupply of homes for rent some poorly maintained properties at this end of the street were very hard to rent. The houses that wouldn't rent were cold, damp and very run down.
This home is not one of them, in fact if you check out what's available to rent in this end of the street there are very few vacancies.
The last tenant was sourced very soon after the previous tenant had given notice to vacate.
This part of Rotorua now has a very strong community support working in the area, there has been a new childcare centre built just down the road. There have also been rumours that the neighbouring tribal land has plans for development. The police don't visit as often.
The home has a modern kitchen and modern appliances that opens on to the lounge/dining area. A ranch slider opens off the lounge onto a wooden deck that overlooks farmland (no neighbours), a spectacular rural outlook.
Three good sized bedrooms are accessed off the hallway along with a modern bathroom with shower over the bath and modern vanity along with a separate toilet.
The paintwork is neutral coloured throughout and is in good condition, as is the grey carpet and vinyl floor coverings.
The exterior is hardiplank with a corrugated iron roof and plastic spouting. Currently there is no covered parking or exterior storage facilities. Added value for the tenant would be the addition of a garden shed and a carport.
Situated off the road, the home shares a driveway with some other properties.
Affordable homes are getting harder to find for tenants with limited income. I own 3 properties in this street (admittedly at the better end), for 18 years I have had people judge the type of tenant this street attracts. However with a strong selection process I have only had one dud and 3 weeks vacancy in 18 years.
This home is worth a look for those investors wanting yield, some equity, but not for the novice, soft or fainthearted investor.
On bus route to city. Daycare a few doors up the road, plenty of industry and jobs available on this side of town.
Debbie Van Den Broek
Licensed Salesperson - REAA 2008
021 131 6119