Well, I've had a search but couldn't find what I was looking for - so here goes:
We're looking at building a multi-unit development in Hamilton near the Hospital (between Hospital and town - so the "good" side). Land is zoned "residential high" so can take 6 units.
It seems that however I do the numbers, the only way it works is to build townhouses with "studio room" style units. i.e. where each unit has 4 bdm each with their own ensuite and kitchenette. Units have a common living/kitchen area + a garage. The rooms are typically rented out separately and similar developments are claiming high rent returns (9+ %) at ~$500k sale prices.
My main concern is whether the Hamilton market has reached saturation for these type of investments - I don't want to be catching the tail-end of the marekt and struggle to sell in 12months time (I couldn't afford to hold them all). There are a few of these in Hamilton East around the University (understandable), but fewer in my area between the Hospital and town...The location is great - close to supermarket, walk to the Hospital, walk to town, etc. Surrounded by nice properties. There is a similar multi-unit development around the corner which has apparantly sold well (to Auckland investors rumour has it)
In an ideal world I'd build upmarket townhouses, or even "normal" 2-3 bdm units - but the numbers just don't seem to work on my (perhaps conservative) build/sale figures...
Anyone, have experience with these type of investments? Are they still a desirable option for investors? Thoughts on the Hamilton market for these would be appreciated. I spoke with a couple of real estat agents - who were worse than useless.
Bank will likely require pre-sales before it all goes ahead...so if we all agree its a great idea and someone wants to invest off the plans let me know
We're looking at building a multi-unit development in Hamilton near the Hospital (between Hospital and town - so the "good" side). Land is zoned "residential high" so can take 6 units.
It seems that however I do the numbers, the only way it works is to build townhouses with "studio room" style units. i.e. where each unit has 4 bdm each with their own ensuite and kitchenette. Units have a common living/kitchen area + a garage. The rooms are typically rented out separately and similar developments are claiming high rent returns (9+ %) at ~$500k sale prices.
My main concern is whether the Hamilton market has reached saturation for these type of investments - I don't want to be catching the tail-end of the marekt and struggle to sell in 12months time (I couldn't afford to hold them all). There are a few of these in Hamilton East around the University (understandable), but fewer in my area between the Hospital and town...The location is great - close to supermarket, walk to the Hospital, walk to town, etc. Surrounded by nice properties. There is a similar multi-unit development around the corner which has apparantly sold well (to Auckland investors rumour has it)
In an ideal world I'd build upmarket townhouses, or even "normal" 2-3 bdm units - but the numbers just don't seem to work on my (perhaps conservative) build/sale figures...
Anyone, have experience with these type of investments? Are they still a desirable option for investors? Thoughts on the Hamilton market for these would be appreciated. I spoke with a couple of real estat agents - who were worse than useless.
Bank will likely require pre-sales before it all goes ahead...so if we all agree its a great idea and someone wants to invest off the plans let me know
Comment