2 REVENUE...(POTENTIAL 3RD REVENUE) AND SUBDIVIDEABLE IN TGA

Listing Number:  1359
Posting Date:  04 February 2009






 
Price:$357000 plus assignment
Listing:2 REVENUE...(POTENTIAL 3RD REVENUE) AND SUBDIVIDEABLE IN TGA
Type:House : Subdivision Potential
Category:Assignment
Bedrooms:4
Bathrooms:2
Region:Bay Of Plenty
Site Area: 
Address: Login
Building Area: 
Property Image

Description:

The House: Large 240sqm 3 bedroom home , bathroom
upstairs and a shower downstairs.
Large open plan living, dining and kitchen with
decks front and back.
House is tidy but a little dated (very rentable as is)
Single internal access garage underneath

Site: 948 sqm flat site- house located at front of site
Unit located behind house joined to house by single
carport
Large double garage located at back right
hand corner of section

The Unit: Located behind the main house is a fully self
contained and permitted 1 bedroom unit.
The unit is 1 bedroom, 1 bathroom with a large
conversatory that could potentially be a 2 bedroom.
Currently it has a large carport attaching it to the main
house for parking.

The Garage: Large 60sqm double garage with power and
concrete floor that is big enough to be converted
into a 2 bedroom flat.
The garage is separate to the unit and the house so
you easily have 3 separate areas for all 3
dwellings, creating a 3rd income stream!


Options: 1) Potential to have house and unit on one title, subdividing the back half off with the garage
and converting into 2 bedroom flat.

2) Sell off as section with Large double garage
(see attached diagram), keeping the house and
unit as 2 income streams.

3) Convert the garage into two bed flat and have
3 revenue streams on one site.

Cost of Subdivision : Estimated $40-50k

Rental Estimates:

$320 per week for the house
$200 per week for the Unit
$250 per week for 2 bedroom flat

TOTAL $770 PER WEEK



The Numbers:

Purchase Price: $357,000 plus assignment fee
Deposit : $40,000
Assignment : $8,000

PP $357,000 @ 5.8% = $398 per week
Rates & Insurance = $52 per week
Total Holding Cost = $450 per week


Rental Income $520 (House and Unit) = positive cashflow $70 per week pretax!!!
(If garage converted rental would increase to $770 per week)


Lease Option:

Lease Option the whole property as the tenant buyer would have a second income stream reducing their own payments.
Maungatapu is a very desireable place to live so this property would make for a popular choice with lease option/ tenant buyers plus the added bonus of rental income from the unit

Potential numbers for the lease option:

Weekly payments of $650-$700
Upfront fee $3-5K
10 Year lease to buy, 4 years before able to purchase for $440-460k

Purchase price $357,000
20% deposit $71,400-GST $39,600 =31,800x6.5%= 40 (weekly)

First Mortgage $285,000x 5.8%= 318
Rates & Insurance = 52
Total Holding Costs = $410 per week


Meaning Cashflow of $240 to $290 per week!

Please Contact Shane 021 331 071 or Kath 021 800 564

for more information.





Additional Documents:

Click to Download
Description: diagram
File Size: 29 Kilobytes