16% Gross yield in Napier
A well presented property with great potential. Featuring 2 separate dwellings on two separate stories, consisting of six bedrooms. Upstairs with sea views and newly renovated kitchen. Both dwellings have had new carpet in the last two years. The properties are in good condition but there is plenty of room to add value through a well planned renovation.
Currently let as two separate 3 bedroom dwellings this property is returning $530 per week. Giving it an 8% gross yield.
But to add a twist to this deal and add more value for you, I have looked into setting it up as a rent by the room. Here’s how.
This property is within a 5 minute walk to Napier city centre and rent by the rooms are in demand in this area and there are already a few successfully operating already.
Here are the numbers.
• Buy 2 LCD TV’s and 4 couches for a total of total of $6000.00 from Harvey Norman on interest free finance and pay them of over a year for $115 per week. Put them in each living area.
• Hire cleaners to come and clean kitchens, bathrooms and living areas for $100 per week.
• Rates are $2,253.21
• Insurance $1000 per year (approx)
• Wheelie bin x 2 at $320 per year
• Free View decoder - $300 to buy and free to run
• 5GB internet connection - $ 90 per month with a landline
Total expenses = $15,853 pa.
Total income = $49,680 pa. ($180 per week x 6 rooms x 46 weeks of the year to allow 6 weeks vacant)
Total profit without mortgages = $33,827 = net yield of 9.5%
With a 6.5% I/O mortgage on 80% LVR you are looking at $15,367per year positive cash flow. Or $295 per week CASH!
All for a purchase price of only $355,000 with finder’s fee included.
People, that’s 6 bedrooms, 2 bathrooms, 2 kitchens, 2 living areas all for only $355,000 and you end up with $295 a week in your back pocket.
Offer expires 21st August 2009
Contact Mitch on 021 21 70744 to view Property or email for more information.