9.6% YEILD, 2 HOUSES 1 TITLE, SUBDIVDE AND MAKE ANOTHER 50K EQUITY

Listing Number:  516
Posting Date:  20 November 2007






 
Price:$248,300
Listing: 9.6% YEILD, 2 HOUSES 1 TITLE, SUBDIVDE AND MAKE ANOTHER 50K EQUITY
Type:House : Subdivision Potential
Category:Assignment
Bedrooms:5
Bathrooms:2
Region:Hawkes Bay
Site Area:1194 m2
Address: Login
Building Area: 
Property Image

Description:

9.6% current rental returns. 10% return easy after renovation. 50K equity after subdivision.


Two houses on one title,

Front house:
Run-down 3bm weatherboard house. Do a bit of TLC to add value. Current tenant is paying $220/week for the house and wanted to stay. Guarantee rent increase after do-up. 3bm done-up would rent for $270/week

Back house:
Almost brand new 2bm weatherboard house. Current tenant paying $240 a week and tenants really want to stay. Nothing needs to be done on this house.


Current combined rental return $460/week, Potential return after do-up 270+240=$510/week!!!!!!!!!!

1194m2 section, potentially an easy subdivision. Subdivision in Napier usually cost around 27K.

You could....
1. Do nothing to the property and hold it.
With the current interest rate, it is weekly cashflow POSITIVE (before expenses), about neutral after expenses and POSITIVE again after tax.

2. Spend 10-20K renovating the front house, increase the rent to $270/week, or even higher if you do it well. Still cashflow neutral, and you will have a better looking house, better equity.

3. Subdivide the two property and sell one or sell both.
The cost for subdivision in Napier is about $27K. This property would be one of the easy subdivisible one. I havent got a surveyor report, and not intending to get one, you will need to do your own homework on this.

Near new 2bm property is this area are selling around $150K, 3bm are selling around $180K-190K.

The bonus is, no holding cost while you are subdividing it!!

Purchase price: $248,300
Assignment fee: $3000 plus GST
Deposit: 12k

unconditional date: 3rd of Dec.
Settlement date: mid Jan/08 -still negotiable

Please contact me on 021607751 for more information