Calling savvy investors looking for an edge in a highly competitive Auckland property market. If understood correctly then LEASEHOLD property could be a great option.

With a great Housing New Zealand tenant signed up until 2018, paying rent of over $32,000 this year, an expected $16,500 in outgoings, we are left with approximately $15,500 in NET RENT for 2016.

Think about it... A deposit plus mortgage at 4% you are still clearing approximately $10,000 per year CASH FLOW POSITIVE!

Thought these numbers didn't exist in Auckland? Well they can!

Let's lay this out:

- A high quality three level, four bedroom, 2 bathroom unit.
- Low maintenance modern property built in 2003, which ISN'T A LEAKY HOME.
- Desirable part of Onehunga with high rental and owner occupier demand.
- Very respectful Housing NZ tenant on annual rent reviews and an expiry of July 2018.
- Leasehold 'unit titled' property under a body corporate.
- Current market rental of over $31,000pa, but to be revised to market this July.
- The 'Ground Lease' (included in outgoings) is calculated at 6.5% of the land value and is reviewed every 5 years, with the next review in 2019.

Ask yourself some questions:

- The Housing NZ contract expires July 2018, would you try and renew it, rent it privately or alternatively move in yourself?
- If rents continue to increase over the next few years, but your 'ground rental' is not reviewed until 2019, then how much of the loan could be paid down before the next renewal?
- Are the current 'historically low' rental yields sustainable, or is it more likely we see rents increase relative to land values in the future?

Contact Hamish to request all documents or for any questions. All viewing will be scheduled on Sundays between 9-11am.