10% BUY & HOLD IN HIGH GROWTH AREA + UNIT TITLE ADVANTAGE!!

Listing Number:  446
Posting Date:  31 October 2007






 
Price:$335,000
Listing:10% BUY & HOLD IN HIGH GROWTH AREA + UNIT TITLE ADVANTAGE!!
Type:Unit/Flat
Category:Assignment
Bedrooms:6+
Bathrooms:3+
Region:Gisborne
Site Area:1940 m2
Address: Login
Building Area: 
Property Image

Description:

This property is 4 x 3 Bedroom Units in Gisborne currently on one title. Gisborne is currently one of the highest growth areas in New Zealand with 21.8% Growth in September (QV); the national average was 13.2%. This is a great buy and hold property with 10% yield, also with the upside of putting the units on individual titles.

The property is a two storey block of four X Crown flats on a 1940m2 section. Each flat contains three bedrooms, separate lounge, combined kitchen & dining, separate laundry area, two separate toilets (upstairs & downstairs), bathroom with shower over bath, covered terrace, garage and garden shed.

The property is located in York Street less than 2.0 kilometres from the business district of Gisborne City. The surrounding area comprises a mixture of Crown rental flats and single unit residential property of post 1960 era and variable construction type. All city services are available including water, sewage, electricity, telephone and gas.

Current Rent:
Flat 20 - $155/week
Flat 22 - $165/week
Flat 24 - $160/week (tenant leaving, but will increase to $165)
Flat 26 - $155/week

The property is currently property managed by Home Rental Services in Gisborne. They have provided a rental assessment of $160 - $170/week, which definitely gives room for improvement. Also on the Department of Building and Housing website the median market rent for a 3 bedroom flat in Gisborne is $187/week.

Below is some recent work that has been completed on the flats:
- New carpet laid in lounge and hallway of Flat 26
- New curtains and nettings throughout Flat 24
- New curtains throughout Flat 22
- New wallpaper throughout Flat 22
- Kitchen repainted in Flat 22

Recent Comparable Sales in the area:
12-14 York St, (2x 3bdrm with garage), Sold for $180,000
16-18 York St, (2x 3bdrm with garage), Sold for $171,000 (needing a paint)
3 London St, (2x 3bdrm with carports only), Sold for $190,000
2-8 York St, (4x 3bdrm with carports only), Sold for $320,000

Also a recent similar property sold on Property Billboard by Chook. The main differences are that the property I have under contract has garages instead of carports and is on 1940m2 section compared to a 1375m2 section.

Here is the link:

http://propertybillboard.co.nz/index.php?action=details&id=250

OPTIONS FOR THE PROPETY

1. Buy and Hold with a minimum of 10% Yield. As mentioned earlier Gisborne is currently one of the highest growth areas in New Zealand.

2. Buy and Hold with a minimum of 10% Yield. When you are ready, unit title the property so each unit has its own title. Once this has been completed you will then be able to get a Registered Valuation done, this will increase your equity on the property to buy more.

Details of the Deal:

Purchase Price: $335,000
Deposit: $5,000
Unconditional Date: 13th November 2007
Settlement Date: 5 weeks from unconditional date
Assignment Fee: $7,500

Please feel free to get in touch if you are genuinely interested.

James Monk
0272000450