MASSIVE 27% ($165,000) BELOW RV, 7.8% YIELD

Listing Number:  1583
Posting Date:  03 September 2009






 
Price:$445,000
Listing:MASSIVE 27% ($165,000) BELOW RV, 7.8% YIELD
Type:Unit/Flat : Do-Up
Category:Assignment
Bedrooms:2
Bathrooms:1
Region:Auckland
Site Area: 
Address: Login
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Description:

It makes us cry to have to put this deal on PB without being able to do it oursleves. :-(

Picture this: a block of 3 x 2 bedroom units in Otahuhu (a rental area in high demand) that look like crap! OK, on closer inspection you find that its only in need of a minor cosmetic do up - maybe $10k in total. Waterblasting, paint and some minor repairs are all that's it required.

Then you find that the 3 units have a combined registered valuation for $606k (1 unit at $200k and 2 units at $203k) AND that that contract price is $441k. So you've worked out there's $165,000 in equity to start with. THAT'S 27.2% UNDER RV!

The units are fully tenanted and under rented - currently paying $660 - but should rent at $750 per week. This would make a yield of 8.8%.

Did I forget to mention that the units are all on separate titles. Not only is there great equity and great yield, but they can be sold off separately after being painted.

The Numbers
Purchase Price $445k
Reg Valuation $606k
Equity $161k
Finders fee: $16,500 + GST
Current rent $660 pw
Market rent $750 pw
Yield at market rent 8.8%
Unco date: 10 September
Settlement date: 14 October

Here's one scenario: purchase and do the minor cosmetic improvements. Sell 2 units off. After all legal fees and commissions etc, the last unit would bring in $110 per week and return 14.6%. The unit would also have $114k in equity. Email me for all the numbers.

There are many things that could be done here. Selling two units is one option. You could also keep all three units as they would be positively geared with an LVR of 62% (Your broker and bank will love you!)

Damnit! there are some good money to be made here ! ! !

This deal is available by assignment, however, depending on what you require we could do this by way of double settlement.

**** There is also an OPPORTUNITY TO JV on this project. Email me for more details.

Give me, Dave Grant, a call on 0275003283 or email me at dave@focusproperty.co.nz for more info such as full copies of the RV, rental agreements and more info.


Additional Documents:

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Description: 3-49 Jane Cowie Shortform RV
File Size: 312 Kilobytes