Listing Number:  901
Posting Date:  18 March 2008

Type:House : Do-Up
Site Area: 
Address: Login
Building Area:600 m2
Property Image


This is a great buy and hold deal. The property is a 6 bedroom dwelling right in the heart of Wanganui City. Its close proximity to the town center and the Wanganui Regional Polytechnic makes this a great opportunity for a “room by room” cashflow investment.

The property is of weatherboard construction and iron roofing and sits on a 1 3 share of 1027m2 section. 5 of the 6 bedrooms are all double bedrooms with the other being only slightly smaller than a double. There has been a new kitchen installed which would easily serve a full house. This was bought by investors who had plans to renovate the property and rent it out as a room by room investment, but another project has them over committed so they need out.

I have had a local renovation company do a full inspection for me and they have advised that the house is solid with only cosmetic jobs and a couple of additions needed to bring this property up to an excellent standard. I have been given a quote which includes the following:

1 Full paint of the interior
2 Full carpet of the interior
3 Additional bathroom to be added to the downstairs level of the house with permit
4 Gib plaster in the laundry
5 New wall between the toilet and shower bathroom for the upstairs bathroom
6 New fixtures handles for all of the windows.

The quote has come in at just under $10,000 for the whole job materials and labour and they believe they could have it all done in 3 4 weeks.

I have also spoken to a local rental company and they have provided a rental assessment of $100 per week for the double bedrooms and $80 per week for the smaller room. They believe there is a high demand for a property like this because of its proximity to the city and local polytech. They have expressed an interest in putting potential tenants forward and managing the property as well.

So heres how the numbers look

Purchase Price $205000
Renovation Cost $10000
Potential Rent $580 per week
$580 x 52 = $30160
$30160 divided by $215,000 gives you a 14% return on your investment.

I have negotiated early access for the renovations to be done before settling and have allowed enough time to find tenants. Settlement is 10 weeks from unconditional date.

Contract details:

PP $205000
Deposit: $10,000
Unconditional date: 27 March, 2008
Settlement date: 10 weeks from unconditional date.
Assignment: $7500
Early Access agreed for renovations, showing tenants through, etc.

Please call me on 027 282 442 if you are interested.