Laneway Apartments, 150 Tuam St, Christchurch

  • Well designed, high quality, low maintenance apartments in prime Christchurch CBD location

  • Total 48 x off-the-plan 1 & 2 bedroom apartments development

  • 7 only available at wholesale with $40k+ discounts

  • $1,800 p.a positive cashflow pre-tax

  • Opportunity for additional capital growth before settlement in late 2020

  • 2 bed / 1 bath apartments priced at $504k - $518k on Sep 2019 valuations of $545k - $560k

  • Car parks available on separate titles for $42k

  • The Christchurch market is undervalued based on the historical growth performance and growing gap between Christchurch and national average. In the last 10 years the market grew 40% in value compared to 80% in the prior 10 years. The earthquakes in 2010 and 2011 and city rebuild have interrupted the growth cycle.


INVESTMENT Overview

Strategy: Off the plan
Upside: Growth prior to settlement
Rent: Furnished / Unfurnished
Lending: 80% LVR
Deposit: 10%
Deposit type: Cash, equity
Title: Unit

Suburb Performance

Dwelling type: Apartments
Market rents 2 bed: $400 - $482 p.w.
Median gross yield: 5.3%
Median sale price 10 years: +40%
Median sale price 20 years: +120%
Capital growth (20 years): 4.2% p.a.

The property

Type: Apartment
Beds/Baths: 2+1, 2+2
Carparks: $42k
Valuation: Priced at 7.5 % discount
Price per SQM: $7,000
Internal floor area: 2 bed 66 - 76sqm
Cost per SQM: $6.6k - $6.8k


Christchurch Central Apartment Market Performance

Apartment median sale price July 19: $407,000

 

Apartment days to sell: 44

Apartment sales volume: 620 per year

 

Apartment sales value: $43 million per year

Market data sources: Real Estate Investar, Tenancy Services, REINZ, One Roof


First home buyers

Dwelling: 2 bedroom apartment
Purchase price: $504,125
Deposit: 10%
Weekly cost to own: $579
Occupancy: Sole
Discount: $40.8k - $41.2k

First home Investors

Dwelling: 2 bedroom apartment
Purchase price: $504,125
Deposit: 10%
Weekly cost to own: $336
Occupancy: With flatmate/s
Discount: $40.8k - $41.2k

Property Investors

Assessed rent 2 bed: $500 - $520 p.w
Year 1 cashflows: 2 bed (+$36 p.w.)
DSR: 1.4
Gross yield: 4.9% at wholesale / 4.5% at valuation
Discount: $40.8k - $41.2k


Discounted stock available

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PRICE AND AVAILABILITY SUMMARY

To reserve a property, request a contract, provide the details requested in the form and we will issue a conditional contract to you for signing. You have up to 48 hours from receipt of the contract to sign, or the property may be released to another buyer. This is not a binding commitment until the contract documents are issued and signed by both parties. Your contract will include a conditional period to enable you to complete due diligence and confirm finance. Until your contract goes unconditional, you are not obligated to purchase the property.


Analysis Assumptions

  • Loan length: 30 years

  • Interest rate: 3.75%

  • LVR: 100% Investors / 90% Home Buyers

  • Rates: $1,600

  • CPI: 3.0%

  • Capital Growth: 5.0%

  • Valuation: Matches listing prices

  • Legal/Loan fees: $1,000

  • Rent: Market rents appraised by property manager

  • Body Corporate: $3,600 as per budget

  • Property Manager: NIL

  • First Home Buyers/Investors current rent: $400 p.w.


 
 

 
 


Christchurch overview

Christchurch is the largest city in the South Island of New Zealand and the heart of the Canterbury Region. The Christchurch urban area lies on the South Island's east coast, just north of Banks Peninsula. It is home to 404,500 residents, making it New Zealand's third-most populous city behind Auckland and Wellington.

The city suffered a series of earthquakes between September 2010 and January 2012, with the most destructive of them occurring at 12.51 p.m. on Tuesday, 22 February 2011, in which 185 people were killed and thousands of buildings across the city collapsed or suffered severe damage. By late 2013, 1,500 buildings in the city had been demolished, leading to an ongoing recovery and rebuilding project.

The city experienced rapid growth following the earthquakes. A Christchurch Central Recovery Plan guides rebuilding in the central city. There has been massive growth in the residential sector, with around 50,000 new houses expected to be constructed in the Greater Christchurch area by 2028 as outlined in the Land Use Recovery Plan (LURP). The rebuild of Christchurch and population growth has created significant investment opportunities for investors. Read more