8 out of 8 sold at apartments auction

[muppet]

8 out of 8 sold at apartments auction


Published 10 June 2010
All 8 apartments put up for action by City Sales on Wednesday were sold under the hammer. One unit was withdrawn before the auction. Auction results:

Freemans Bay

Beaumont St, 10-12, unit 1B, 90m² 2 bedroom split-level apartment, 2 bathrooms, 2 decks, tandem parking space, vacant, freehold, rental assessment $550-600/week, sold for $435,000 (Steve Kirk & Krister Samuel)

K Rd ridge

City Zone, 11 Liverpool St, unit 1412, 39m², fully furnished 2 bedrooms, deck, rental assessment $305/week fixed to March 2011, sold for $137,000 (Mark Jones)

City Zone, 11 Liverpool St, unit 1401, 39m², 2 bedrooms, deck, rental assessment $320/week fixed until 19 November, sold for $143,000 (Judi Yurak & Matt Shirley)

Learning Quarter

Unilodge, 138 Anzac Avenue, unit 503, 75m², fully furnished 4 bedrooms, 2 bathrooms, parking space, fully managed with income assessment of $25,000/year to Boston University, leasehold, sold for $136,000 (Mark Jones)

Empire, 21-23 Whitaker Place, unit 128, 52m², fully furnished 3 bedrooms earning $10,500/year, sold for $144,500 conditional on bank’s approval (Andrew Bond)

Queen St

Volt, 430 Queen St, unit 1501, 48m², fully furnished 2 bedrooms on 15th floor, deck, parking space on separate title, rental assessment $400/week including parking space, sold for $261,000 (Krister Samuel)

Guardian Trust, 105 Queen St, unit 704, one bedroom, withdrawn from auction (Steve Kirk)

Viaduct

Sebel, 85 Customs St West, door 209, 50m², furnished one bedroom, deck, in hotel pool, leasehold, sold for $155,000 (Judi Yurak & Matt Shirley)

Victoria Quarter

Zest, 72 Nelson St, unit 1402, 37m², fully furnished 2 bedrooms, deck, parking space, rent fixed to 17 December $300/week + $45/week for carpark, sold for $181,500 (Krister Samuel)

http://www.propbd.co.nz/afa.asp?idWebPage=8338&idBobDeyProperty_Articles=14383&SID=1023768058

[TomW]

Empire, 21-23 Whitaker Place, unit 128, 52m², fully furnished 3 bedrooms earning $10,500/year, sold for $144,500 conditional on bank’s approval (Andrew Bond)

Iv been here.Its a pretty nice place.Gotta wonder what the body corp is though..

[eri]

these are some numbers i got after asking about an empire 3bd

BC$3404 Maint $2233 OX$8637

i don't quite understand them but they were too high for me

[Davo36]

What's OX? Operating expenses? In addition to the body corp and maintenance? Seems expensive alright.

[eri]

i guess the OX is a total figure

but it's hard to know and harder to know what to ask

it does seem that even once units are out of the "pool" there are still likely to be other charges you have to pay if there is any kind of accommodation business running in the building

ie if they have; 24hr help desk, room service, pool, communal kitchen, cinema showing action movies in cantonese and mandarin, sauna etc. then proportional charges are likely to be charged to every owner in the building whether they use them or not

which is why it is hard to see any "experienced" investors buying units in buildings with such uncontrollable overheads

[Re@der]

Do I calculate correctly that this is 1.3% yield after operating expenses?

[AMR]

Zest looks like it is back to pre-budget announcement prices.

[Bob Kane]

Empire, 21-23 Whitaker Place, unit 128, 52m², fully furnished 3 bedrooms earning $10,500/year, sold for $144,500 conditional on bank’s approval (Andrew Bond)

these are some numbers i got after asking about an empire 3bd

BC$3404 Maint $2233 OX$8637

i don't quite understand them but they were too high for me

My take on what is happening:
Gross rental = 24,774
subtract expenses (BC$3404 Maint $2233 OX$8637) of 14274
net return = 10,500

purchase price 144,500
yield (net return/ purchase price) 10,500/144,500 = 7.2%

Cash positive on a floating interest rate.

[Jumpin]

Barely, after rates & insurance..

[captaincrab]

Jumpin,
Rates and ins are included in the op ex , which the managers pay. I thought the Empire price was high. They seem to sell based on a 10% NETT return.7.2% seems low although I understand this Unit was on the top floor.