This property consists of 4 x 2 bedroom 1980’s A frame townhouses on a 607 sqm freehold section. They are well maintained and in mostly original condition.
All 4 townhouses currently have tenants in place on periodic leases. They are all currently under rented achieving a weekly total rent of $615p.w. We have an up to date rental appraisal (2016) at $165 per week for three of the units and $170 per week for the other, making a total of $665 per week
The numbers:
Current Rental Income $615p/w x 52 = $31,980 p.a
Appraised Rental Income: $665p/w x 52 = $34,580 p.a
Less Expenses:
Rates: $6,828 p.a.
Insurance: $1,500 p.a. (estimate only)
Property Management: $3,181 p.a (at 8% + GST)
Interest: $14,983 (100% borrowing at 5% interest)
Total outgoings: -$26,492p.a
On the current rental income property is cashflow positive $5,398p.a or increase the rents to the market appraisal makes this property cash flow positive of $8,088 p.a.
About Whanganui and this properties location:
42 Pitt St is located in the city centre of Whanganui. Central and inner city suburbs have greater rental ability and, as a result, achieve high occupancy rates with quality tenants. Lower priced outer areas attract more vulnerable tenancies and are in a lower price bracket.
The Whanganui property market offers affordable opportunities for investors who are looking for low cost cash flow properties.
This will be popular so contract us ASAP to purchase this property.
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