WELLINGTON PRIME AREA INVESTMENT OPPORTUNITY – 8% NET YIELD G’TEED FOR FOUR YEARS
I am selling several (up to seven in total) four star one bedroom and two bedroom off-plan serviced flats in a new development in Bolton Street, Wellington (prime area near the Parliament Building, various ministries and government institutions, 15 min. walk from the rugby stadium). Completion is in November 2004, deposit is 10%. The serviced flats will be managed by an onsite experienced operator who will let them like a hotel bedroom. The occupancy rate in that market in Wellington is in the region of 75%. The operator of the development guarantees a net rental income of NZD 18,912.50 for the one beds and NZD 28,262.50 for FOUR YEARS from completion (with 12 months of income to be held on an escrow account). I am selling the one beds which come complete with a luxury furniture package included in the price for NZD 236,400 and the 2 beds for NZD 353,280. The guaranteed income is equivalent to an 8% yield. After 4 years, there is no more income guarantee, but the owner can benefit from the upside (the manager keeps all income over this 8% return for the first 4 years, and afterwards is incentivised to generate more than 8% yield). The contract is assignable, so you can sell on before completion if you want to.
The GST is chargeable at 0%, the income can be offset for tax purposes by interest and depreciation, and there is no capital gains tax in NZ for non residents on that type of investments.
Please contact me at [email protected] for more details.