BUSINESS OPPORTUNITY IN THRIVING SOUTHLAND (39.6% BELOW CV)

Listing Number:  1296
Posting Date:  25 November 2008






 
Price:$510000 plus GST and finders fee 5000
Listing:BUSINESS OPPORTUNITY IN THRIVING SOUTHLAND (39.6% BELOW CV)
Type:Unit/Flat
Category:Assignment
Bedrooms:3
Bathrooms:2
Region:Otago
Site Area:200 m2
Address: Login
Building Area:1349 m2
Property Image

Description:

56 Thomson Street comprises a large home approx 200m2 with open plan design and 3 generous bedrooms including office, master ensuite and good storage. Beside this are 4 well appointed studio units (built 2002) with open plan living area, bedroom and kitchen. At the western end of these units are a separate laundry and storeroom. This combination would really suit someone who wants a large modern home with a successful business attached. It is currently being run as hotel accommodation.

This property is in absolutely mint condition. The units are immaculate. They consist of open plan living, dining, kitchenette. Double beds (2xKing and 2xQueen). Extensive chattels list. Location is walking distance to CBD.

Vendor Finance of 20% available for 5 years at current floating rate. Conditions apply.

There is an opportunity to purchase the 10x2bdrm units at 44 Thomson as well and make a real business opportunity and cash - as the current owners have done...that's why they are retiring. Purchase the lot for $1.3M plus GST and finders fee.

CV - $950000
PP - $510000 plus GST and FF
Rent - Potential $3360 pw based on $120pn x 7 days x 4 units = $174720pa
Yield - 30%
Rates - $4408.60
80% Loan of $573750 (510K + GST) = 459000 @8.5% IO = $39015pa = HUGE Cashflow!!!

This is the potential cashflow at zero vacancy rate which is unrealistic, however, even at a 50% vacancy rate the yield is still 15% plus you have a 3 bedroom house for nil cost.

Options aplenty:
- lease the business
- run the business yourself and be self employed
- purchase the lot for $1.3M + GST and have 14 units, 1 home, a business and great income and potential capital gains.