As part of our business model at Rental.co we are on the lookout for opportunities to grow your portfolio.
This opportunity came to my attention with the cost to build in New Zealand ranging from $2000 to $2500 m², so if we look at the size of this one bedroom, self-contained granny flat at 50 m² would cost you $100,000 to build. The other notable fact is that the asking price includes the relocation and piling of this property within a 70km radius of Whangarei CBD.
After talking with the awesome team at Rentals.co the rent return on this property situated in Whangarei would generate $220 a week or $11,440 per year. Let’s do the math on this project. With a purchase price of $38,000, a rent return of $11400 per year, the return is at 30%.
What do you need? You need to have the core asset, that’s your existing property which could accommodate a unit with a separate access so not interfere with your existing tenant.
This is a very simple investment approach requiring further due diligence and building consent , power connection, sewage, water, driveway etc. With all that said, it’s still showing a great return.
In essence, Rentals.co thinks outside the box and we believe you do too, if you would like Rentals.co to further investigate this opportunity and project manage from start to finish, give me a call on 09 459 7139.