Currently under contract - You may wish to put in a back up offer.
Why buy one when you can buy two for the price of one, with an unheard of 30% discount, below today's market value?
These 2 x 2 bed flats on 1021m2 land area are on two separate titles and located in the Gonville suburb of the Wanganui district.
PROPERTY DETAILS:
Solid construction, Stucco cladding and built post 1945 (so no expensive re-wiring...etc). Both the flats are reasonably tidy with the following work done after we bought it:
Location:- Close to shops & schools
Rental appraisal:- Between $150-$160 (attached)
- DBH website shows the average rents to be $163/week (http://www.dbh.govt.nz/market-rent?Location=Wanganui%20-%20Wanganui%20District)
Market value (MV):- The realestate.co.nz website shows the minimum price of a 2 bed house in Gonville to be $135k (http://www.realestate.co.nz/residential/house/gonville?order_by=1&min_price=0&max_price=99000000&num_bedrooms=2)
Equity position:- On asking price of $190k, that's an awesome 30% below MV (i.e $80k instant equity)
WORK DONE AFTER PURCHASE:
1) Installation of new drapes and tracks in both the flats
2) Hotwater replacement in one flat
3) Cleaning
4) Stormwater separation of both the flats (council requirement)
5) Fixed/repaired windows
Flat 2:
- MV: 135K
- Land area: 480km2
- Purchase price (PP): $95k
- No assignment fee (so you can borrow full amount)
Combined MV:- 270k (verbal agent appraisal: between $135k-$150k)
Combined PP:- 190k
Deposit:- 10k
Unconditional date:- Thursday, 15th May 2008 (negotiable)
Settlement date:- Tuesday, 3rd June 2008 (negotiable)
STRATEGY 1: Buy & Sell
- You can buy & then re-sell both the properties at under market value of say $108,000 each, thus making yourself a gross profit of $54,000
STRATEGY 2: Buy & Hold
- You may wise to buy & hold these properties and rent it out @ $320/week. Based on an LVR of 85%, your deposit to the bank would be $28,500...later refinance within say 6 months to recycle your deposit. Still staying below 85% LVR, you will release $40,500 from the $80,000 equity (which leaves you about $12,000 over & above your initial deposit to buy your next property)
STRATEGY 3: Hold one, Sell one
- After you buy, you may wish to lower your mortgage by selling one flat for a conservative price of $120k. Thus your net mortgage would be just $70k (190k-120k) with a rental income of $160/week...that's about 12% Gross yield!!!
CONTACT DETAILS:- Ash (021 782 999)
P.S:- We bought these two properties with a sole intension of buy & hold, but due to some unfortunate circumstances we have to sell it urgently.
Click on the photo to enlarge