The dwelling comprises a spacious 3 bedroom home on a 921m2 section situated in a quiet street that has lapsed resource consent to subdivide into 2 properties. There is nothing to spend on this property as the bathroom and kitchen have recently been renovated to a very high level, and the overall condition of the house is excellent.
This house was built in the 60’s of timber weatherboard cladding and concrete tiled roof. A garage with carport is at the rear of the property to one side. There is very good access to the back yard. The home has a large sunny deck area to the rear of the property. Current tenants wish to stay and will sign a new 12 month fixed term tenancy at $380 per week. Close to good schools with bus and train services nearby. Big financial upside here by adding a second dwelling to the rear of the property and you wouldn’t have to re arrange the existing house to do it as the front house has a big front yard.
Close to Papatoetoe town centre and local public parks and services. Holy Cross School, Papatoetoe Central School, Papatoetoe Intermediate and Papatoetoe High School are all within a short commuting distance.
This investment has a high financial upside in that you can land bank this property but still get a very good return off it because it has an existing rented home on the site. The hidden value of this property is the subdividible section at the rear so in essence you are getting the back section free. Great investment now as it stands with a gold mine at the rear. As the property has had in the past resource consent to subdivide there should not be any barriers to renewing this approval. These types of properties are very hard to find in any market.
Purchase price: $337,000 via double settlement
Registered valuation: $400,000
New fixed term Rental: 380 per week
So this investment potentially looks like this:
• 16% below valuation
• Huge financial upside with adding an additional dwelling to the rear. (Has had resource consent, but lapsed).
• Keep the property as it stands and land bank.
• Located in a very quiet part of Papatoetoe and close to all amenities.
Very hard to find these types of investment properties in any market. This investment will always outperform other properties due to the sub dividable section, so you have future financial security.