BRAND NEW WITH POSITIVE CASHFLOW

Listing Number:  1347
Posting Date:  22 January 2009






 
Price:$Mid to late 400000s
Listing:BRAND NEW WITH POSITIVE CASHFLOW
Type:Home and Income
Category:Assignment
Bedrooms:6+
Bathrooms:2
Region:Auckland
Site Area: 
Address: Login
Building Area: 
Property Image

Description:

This is fantastic buying, we have 5 BRAND NEW home and income properties secured for mid to late $400,000s with registered valuations of $560,000 to $570,000 AND they're CASHFLOW POSITIVE!

The properties comprise of a spacious brand new 4 bedroom residential dwelling, four being externally clad with brick veneer walls with linear weather board inserts on some walls and one constructed of linear weather boards. All main dwellings have double internal access garages, and a paved outdoor area. They sit on sections ranging between 610m2 and 712m2 situated in a quiet street in Swanson, West Auckland. Located adjacent to each main dwelling is a brand new one level 2 bedroom residential minor dwelling, being constructed in weatherboard cladding with a concrete tiled roof.

The grounds are landscaped with good vehicle access and footpaths. The dwellings are currently rented at $440 to $445 for the main dwellings and $300 per week for the 2 bedroom minor dwellings. This gives a total of $740/$745 for the total investment.

The property manager has had no problem tenanting any of them.
Close to good schools with bus and train services nearby.

All houses are carpeted with tiled entrance ways, kitchens and bathroom areas. One of the 4 bedroom houses also has an en-suite. Overall the houses have been finished to a very high standard of workmanship and there is nothing left to do here as they are brand new. Being brand new, you can also maximize depreciation to increase your after tax cash flow and also minimize maintenance.
Your risk of vacancies is also reduced as you have 2 tenancies in the one investment.


Location:
Close to schools, shops and local transport. The train station is only 2 minutes from the properties which gives easy access to Auckland city.

Property Value:
These properties have a good return with two incomes from each one. The developers built these for his own portfolio but has run out of 2nd tier funders to enable him to keep. This makes it a great opportunity for you to get in fast before he finds an alternative and capitalize on their great work.
We did have six but one is already taken to be quick!

Summary:
Purchase price: Mid to late 400,000s
Assignment fee: $6,000+GST
Registered valuations: $560,000 to $570,000
Deposit: 5%
Rental: $440/$445 (4 bedroom) plus $300 (2 bedroom) = Total $740/$745 per week
Gross yield: 8.4% to 8.6%

So this investment potentially looks like this:

19% below valuation
8.4% to 8.6% return
CASHFLOW POSITIVE BEFORE TAX by $2,400 and AFTER TAX by $10,900
Great financial returns with 2 dwellings on the same section.
Risk is spread over 2 dwellings on the 1 title.
Located in a very quiet part of Swanson and close to all amenities.

Please contact me if you have any questions. Email for copies of valuations and workings, and prices.

Contact: Grant Clifton
Phone: 021 378 929
Email: grant@houseswanted.co.nz


Additional Documents:

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Description: Valuation
File Size: 1.86 Megabytes