For Sale - $1,200,000

With strong cash flow and a gross return of close to 10% per annum, this exceptional investment property is located within easy walking distance of both the University of Canterbury and Westfield Riccarton and is comprised of two houses with a total of eleven bedrooms, each on individual titles.

The front house is five bedrooms with a rental of $550 per week on one fixed term tenancy. The back house was purpose built in 2012 and consists of six bedrooms with six ensuites plus a living room and bathroom that is currently rented as a seventh bedroom, giving a total rental income over both houses of $2,290 per week.

The desirable location and quality of accommodation attracts a range of students and young professionals, which assists in keeping tenancy turnover low.

Each room within the back house is fully furnished with a bed, fridge and desk, with room rates ranging from $220 to $270 per week depending on whether they are a single/couple and also the duration of the tenancy agreement.

Tenants within the back house pay for their own power usage within their rooms and overall power usage is kept to a minimum due to the installation of a gas hot water heating.

Expenses, as provided by the vendor, are $9,600 per annum for the back house this includes power, gas, cleaning, insurance, bins, rates, phone and broadband. For the front house the expenses are minimal as this is on a standard tenancy and tenants pay for their own services, the vendor covers rates and insurance at a cost of $2,500 per annum. These figures don't allow for any ongoing maintenance or property management fees as the current vendors manages the properties themselves.

This is a well set up, purpose designed investment property, established by an extremely experienced owner who has been in the business for many years.

Agency reference #: 517708