Is Maraenui a GHOST town or becoming one?

[Kre8eve]

There is a deal on propertybillboard which 'sounds' good...although this is in an unheard of suburb called Maraenui in Napier

Any feedback appreciated.

DEAL details (copied & pasted):

2 x bedroomed unit above a retail shop which is currently vacant.
unit is rented out for $220 per week, giving a huge 11.4% return!
imagine if you lease the shop out.?

purchase price $100,000
deposit $5,000
settlement 20 days after unconditional date or by mutual agreement.
assignment fee $3,500
unit has 2 double bedrooms with balcony off both bedrooms, lounge and kitchen with rear balcony.
lower story includes bathroom and shop.
used to be fish and chip shop, and has large workroom and chiller.

lots of options here with major upsides.
1.keep as is with shop vacant and enjoy 11.4% return
2. lease shop out and increase cashflow considerably
3. convert lower level into another residential unit and double yield

[Green Fish]

At a guess, I'd say that it's a leasehold property.

[Kre8eve]

Looks like its freehold!

[kiwikauri]

the area is lower socio economic, with a lot of investors having rentals in the region. there are shops ,buses, schools, and parks close by and it would be a 5-10 minute drive to the middle of napier.

[Green Fish]

kre8eve: Then the next question should be: Why hasn't the tenant bought it? After all, the tenant is paying $11,440 pa in rent. If they borrowed 100k at 10% interest-only, they would pay $1,440 less.

In other words, the tenant might be a "plant".

The only way to sort this out is to jump into the car (and spend a fortune in gas.)

[kalovatt]

Maraenui is the equivalent of Manurewa/Otara in Auckland. Or at least it certainly was when I used to live in Napier many moons ago.

[kiwikauri]

Chook is a good guy, and I have assigned 2 properties from him in Maraenui, so I would be very very surprised if Chook was involved in any 'plant'.

Anyway $220pw for a 2 bedroom unit sounds a reasonable rent to me.

My explanation would be that you have to remember that 'tenants' don't think as investors.

Best way to clarify is to give Chook a ring.

KK

[chook]

good on ya K.K ....

there are
definately no `plants` or whatever going on just a good deal arising from a private vendor, feeling the pinch and having to offload very quickly his rental property, i have pm`d kre8ve and given him the facts, but good on him for doing his DD and finding what other investors think.
as for waipukurau being a one industry town?
far from it, the closure of PPCS plant at ORINGI in dannevirke has opened up another 100 jobs at the TAKAPAU plant which has been running for over 30 years. this is of course a feeder industry to the very strong agriculture sector,sheep and beef farmers are coming out of a 2 year drought, and you will find this spring prices will soar for stock because of a `grass market` and little available stock around. its a simple supply and demand law playing out naturaly.
dairy farmers are in an even better situation with a $7+ payout from fonterra and also coming out of a drought. for the average dairy farmer the increased payout has given an extra $250,000-$300,000 per year increase to thier income. unreal aye!!
there is also the`bernard matthews` meat plant, ravensdown fertiliser outlet. balance fertiliser outlet. the waipukurau farmlands outlet is the biggest inthe lower north island, i hope that clarifies that it is far from a comparison to tokaroa for example.
HAPPY INVESTING
shane

[chook]

whoopps, second part of transcript above applies to other thread, waipukurau...worth investing in.
sorry its been a long day!!

[spaceman]

watch out chook

.......... i hope that clarifies that it is far from a comparison to tokaroa for example.
HAPPY INVESTING
shane

I think I heard Muppets snort of indignat rage from here.

I think he's coming to kick your ass

Cheers
Spaceman

[chook]

i said one industry town.
I DIDNT SAY NOT A GOOD PLACE TOO INVEST

[muppet]

i hope that clarifies that it is far from a comparison to tokaroa for example.

Why chook?

I much prefer Tokoroa to Maraenui.

More police presence in Tok than Maraenui and less gang members as well.