Listing Number:  450
Posting Date:  11 February 2009

Category:Private Sale
Site Area:276 m2
Address: Login
Building Area:1011 m2
Property Image


Here is an opportunity to purchase a top performing CASHCOW property in the sunny town of Gisborne and make some positive cashflow, equity and long term capital gains.

Be quick to snap up this excellent positively geared professionally managed property, offering you an impression 14.4% gross yield after producing an awesome $101,000+ per annum income.

A recent valuation was $745,000, at the asking price of $699,000 this will give you an immediate $46,000 in equity.

Note: The valuation doesn't take into account two on site caravans producing $160 per week in income, because they are not fixed dwellings.

This 1910 property is a registered boarding house; it has 17 tenancies. The professional on site manager manager looks after the property allowing the current owner to manage the property 20 minutes a week with only one call. Management information available below.

It has a quarter acre freehold section and is a huge 276m2 home. This property is located two minutes stroll from the Beach and 1.5kms from Gisborne CBD.

Sea views from the second level.

A recent renovation to the property saw all deferred maintenance completed, relining and painting of some rooms, common areas and some re roofing.

There is a property maintenance program in place where a contract company washes and paints the house annually and the ovens and washing machines have been replaced.

The tenancies are made up of 7 rooms downstairs and 5 rooms upstairs inside the main dwelling and 1x 2 room unit, 2 x single units and x 2 caravans outside. An additional $25 per room is charged when a couple move into a room. There is a communal kitchen and laundry in the main dwelling and two sheds outside.

The property produces $101,000 per annum with expenses of $25,297.19 per annum. With recent and coming demand to Gisborne, there is also room to increase room fees if desired.

There is a guarantee that the property will be fully tenanted at settlement and could negotiate with the purchaser regarding increasing rents prior to settlement.

The per annum costs will also reduce by $2,748.36p a in August 2010 when the maintenance contract expires assuming the owner doesnt re sign and with the introduction of a new collection and recycling system the rubbish collection could be reduced significantly from an expensive $2,808p a.

A positively geared property before tax losses in a capital gains location is almost impossible to find, let alone a 14.4% yielding one so close to one of the best East Coast beaches in NZ. This will be a stunning buy and hold property for the cash flow AND the capital gains over the long term.

Make contact to access important documentation including a recent valuation, spreadsheets, management and manager profile and access our investor website for more photos.

Additional Documents:

Click to Download
Description: Management Notes for Running Boarding House
File Size: 43 Kilobytes