Papatoetoe - Wallace Road

[xkm]

Hi

I am looking at some properties over Papatotoe, Wallace Road, and I know in general South Auckland is not the best place. However I am looking at buying a property there for rental. Jus want to know how the area is like, is it a good area for rental, how likely the property be re-sell?

Alternatively how do I search about the area online before buying the rental property?

Any comment would be appreciated! Thanks

Xkm

[Orkibi]

Wallace road in general is a good road, it can be busy in times but it is close to central Papatoetoe and it is in the desirable Papatoetoe high-school zone. the more you go north towards St George st the better it is, exit to Puhinui rd can be tricky in times..

What sort of Deal are you considering? whats the upside to add value? and yield?

[PTILoveYou]

I don't know south auckland, but from a desktop study, here's my 2cents:

1) there are no HNZ on the whole street
2) the street is right under the flight zone, so I don't know how the planes affect this area.

Orkibi is a guru so listen to him =)

[Orkibi]

the street is right under the flight zone, so I don't know how the planes affect this area.

most of Papatoetoe and Manukau highs, etc are in flight zone... its not a big deal.

The main question is whats the deal is like? don't pay to much!

[Shane D]

Hi

I am looking at some properties over Papatotoe, Wallace Road, and I know in general South Auckland is not the best place. However I am looking at buying a property there for rental. Jus want to know how the area is like, is it a good area for rental, how likely the property be re-sell?

Alternatively how do I search about the area online before buying the rental property?

Any comment would be appreciated! Thanks

Xkm

The Wallace Road area is one of my favorite spots in Papatoetoe. Are you looking at the Puhunui Rd end of Wallace or the Old Papatetoe Township end? Both are good. The advantage of being at the Puhunui end is you are very close (walking distance) to the Puhinui Train station and very close to Manukau City Centre.

That area is very popular with renters. It is in the Papatoetoe high school zone and there are some good primary schools within walking distance.

Shane

[Bluekiwi]

The Wallace Road area is one of my favorite spots in Papatoetoe. Are you looking at the Puhunui Rd end of Wallace or the Old Papatetoe Township end? Both are good. The advantage of being at the Puhunui end is you are very close (walking distance) to the Puhinui Train station and very close to Manukau City Centre.

That area is very popular with renters. It is in the Papatoetoe high school zone and there are some good primary schools within walking distance.

Shane

What would you have paid for 94 Coronation Road. Shane.
I got murdered by a chinesse lady at the auction last week.

5 Bedroom main house, lovely old design, and 2 bedroom additional house.
Fully permitted on 1200m site.
Would have rented for about $550 and $350, with a 5k spend.
Potential under the Unitary Plan new rules (which was my angle), but storm water about 5 houses away and so therefore maybe 50k to 100k upgrrade required for a potential developer who might buy it further down the track.

[Shane D]

What would you have paid for 94 Coronation Road. Shane.
I got murdered by a chinesse lady at the auction last week.

5 Bedroom main house, lovely old design, and 2 bedroom additional house.
Fully permitted on 1200m site.
Would have rented for about $550 and $350, with a 5k spend.
Potential under the Unitary Plan new rules (which was my angle), but storm water about 5 houses away and so therefore maybe 50k to 100k upgrrade required for a potential developer who might buy it further down the track.

BK,

Wow that is a super nice property. So much going for it

- Golden Circle (most sort after area in Papatoetoe)
- Double income of $900 a week
- Corner site with 2 road access
- 1200m2 - huge future development potential
- less than 400m walk from the Papatoetoe Train station
- around 400m walk to old Papatoetoe township

That had to have gone for $770k or there abouts (just South of 6% gross yield).

Please do tell. That would be a dream property for me.

Shane

[xkm]

Thanks everyone's input.

Well the property I am interested in is close to St George Street, property is 4 bedroom + 2 sleepout, land is subdividable, about $700/wk, but the price is in the $700k range. Is the price too expensive or it's reasonable? Similar house with subdividable land in Papatoetoe seems to be in the $600k range, any thoughts?

[Orkibi]

Similar house with subdividable land in Papatoetoe seems to be in the $600k range, any thoughts?

you answered your own question XKM.


Yes it is very expensive at 5% return and paying over 400k a section if you chop it in 2. 700k+100k sub (at list) = 800k /2 = $400k for what?

What would it give you buying this, low yield overprices property?

[Shane D]

Thanks everyone's input.

Well the property I am interested in is close to St George Street, property is 4 bedroom + 2 sleepout, land is subdividable, about $700/wk, but the price is in the $700k range. Is the price too expensive or it's reasonable? Similar house with subdividable land in Papatoetoe seems to be in the $600k range, any thoughts?

xkm,

As Orkibi said, it's WAY over priced for a 4 bedroom + sleepout in Papatoetoe. You would want to be paying in the low $500ks max IF it's a 850m2-1000m2 section. If it was a legal 4 + 2 Home and Income (with separate water and power meters for both dwellings) you would probably pay in the $600+k range depending on the condition of course.

Papatoetoe prices have gone stupid but not $700k stupid yet for a 4 bed home + sleepout .

Shane

[Bluekiwi]

BK,

Wow that is a super nice property. So much going for it

- Golden Circle (most sort after area in Papatoetoe)
- Double income of $900 a week
- Corner site with 2 road access
- 1200m2 - huge future development potential
- less than 400m walk from the Papatoetoe Train station
- around 400m walk to old Papatoetoe township

That had to have gone for $770k or there abouts (just South of 6% gross yield).

Please do tell. That would be a dream property for me.

Shane

Vendor wanted 750k or more.
I was quite keen, and went to 801k, hammer was 1/2 a second from falling on final call.
When little young chinese lady decided to bid, and as the agent said she wasnt going to stop.
She paid 828k for it.

8k more due to me.

She went to 820k and I thought, oh well you are not going to stop, but your auction style annoyes me so I will make you pay more.
So I went 825k and she went 828k.

The vendor was a nice guy, and she was slightly nasty and annoying, so I enjoyed the 8k transfer of wealth.

[Orkibi]

Values in Papatoetoe for home and incomes should be and were around 7%-7.5% in the last 4 years.

Anything under 7% is not worth it in my opinion. But considering where the mark is now at the moment it maybe around 6.5%

[Bluekiwi]

Values in Papatoetoe for home and incomes should be and were around 7%-7.5% in the last 4 years.

Anything under 7% is not worth it in my opinion. But considering where the mark is now at the moment it maybe around 6.5%

I was taking a punt on the proposed unitary plan as its zoned appartments and the land was big enough.
In that case I am prepared to suffer a 5% yield if I have to.
But storm water was a street away and would have incurred 50k to 100k to any prospective developer buying it in the future.
It that storm water wasnt an issue I would have gone to 850k.

[Orkibi]

I was taking a punt on the proposed unitary plan as its zoned appartments and the land was big enough.

EXPENSIVE "Punt". looks like the plan is almost approved now.

[Bluekiwi]

EXPENSIVE "Punt". looks like the plan is almost approved now.

Well I am punting about 2.5m this year on long term holds.
If some done work out, well whats the worst that can happen, prices keep going up these next 3 years, and you come out in 5 years at a quite high interest rate.
You struggle a bit, so you have to downsize and quit a few houses.
I am sure any capital gain in those 3 to 5 years will handle any interim holding costs.
This is auckland we are talking about, it was built on punting and speculation

But seriously.
I went to talk on it last night actually.
And its actually quite confusing.

It is being "Notified" 30th september, not approved.
Then there is a 3 month period to make official objections or submissions.
Then there is 3 years of working through those submissions until a plan is implemented in about 2017.
About same time as America's cup really.