Description

Construction has BEGUN on these properties, so we expect them to sell down quickly now, especially as the OCR continues to come down.

It has been a long time since we have seen properties that show good cashflow in Auckland! These brand new off-the-plans townhouses not only look great, they have been cleverly configured to return two rental streams from one dwelling.

A dual-key property means you are buying one legal title, which has been separated internally into two rental streams. The main entry flows into an internal landing, from where two lockable doors lead to spacious internal units. On one unit, the smallest, these comprise two studios, while the rest are 1br layouts with separate living and bedroom areas, one with a full kitchen and one with a kitchenette.

Because you are buying one legal title, there are not only big savings to you on a lot of the costs associated with building (such as development fees), over time you pay one set of rates, one body corporate levy etc.

Investment drivers:

• Great location suiting a range of tenancies; standard rental or AirBNB
• As a new build, investors only require 20% deposit (80% LVR)
• Configured for cashflow: An equivalent priced "regular" 2br townhouse would usually rent for $650pw, while these properties are appraised to rent for $950-$1,000pw.
• Just under a 7% gross yield in Auckland for a brand new townhouse (3.5%-4.5% is what we see non dual-key options)
• A dedicated short term (AirBNB) rental agency has appraised the property to return a total net income of between $1,100 - $1,400pw after fees - depending on the unit and car parks. For a similar spec and location, a standard 2 bedroom / 1 car park townhouse they estimate $800 net income per week after fees.
• Blinds and furniture packages (a must for short-term lets) available, meaning finished to “tenant ready”completion; ideal for out of town investors
• Property managers have commented that NEW 1br rentals are in high demand
• Interest rates in New Zealand are declining and projected to continue to come down in the medium term
• Ideal for blending personal use with investment. Own your own place in Auckland, while earning a constant rental (or AirBNB) income
• The development comprises townhouses instead of an apartment building, meaning construction should take less than 12 months from breaking ground in April 2025.
• Brand new is ideal to depreciate chattels and increase your cashflow
• The development is limited to just 17 properties

We have a long relationship with the people behind this development and have worked hard with them as they designed this project to solve the Auckland new build investment problem by focusing on creating a high yield without compromising on rentability.

We have contacted three property managers who all have experience in managing properties configured in this fashion. All are confident in the demand and appraisals are enclosed in the information memorandum (IM).

We have contacted two full-service AirBNB letting and management service agencies. One appraisal is enclosed in the IM and the other is on the way.

The numbers are very good for brand new, and outstanding for Auckland today. With interest rates now tipped to fall much sooner than had earlier been indicated by the RBNZ, projected cashflow should improve by completion so the timing couldn't be better.

A full information memorandum is available with:

• Three written independent rental appraisals for regular tenancy
• One written independent appraisal for full service short-term let management
• The full spec
• Details and budget of the body corporate
• Available units, pricing, carpark details and appraised rental yields on each unit.
• Frequently asked questions about how dual-key units work

Contact Stephen for more information.