17 LYON ST, FRANKTON, HAMILTON, TOWNHOUSES

Growth in Hamilton City Townhouse Median Sale Price

  • Well designed, high quality, low maintenance, fully furnished townhouses in prime Hamilton location

  • 8 x 2 bed townhouses, fully-furnished (only 4 left)

  • Opportunity for additional capital growth before settlement

  • Prices: $497k - $509k including carpark

  • The Hamilton townhouse market has matured and grown significantly over the past two decades as the price of land has risen. The Hamilton City median sale price has now passed the National Average. In the last 10 years the market grew 85% in value compared to 59% in the prior 10 years. This has driven up the demand and values in suburbs n the CBD fringe such as Frankton.


SUBURB PERFORMANCE

Dwelling type: Townhouses
Market rents 2 bed: $400 - $430 p.w.
Median gross yield: 4.5%
Median sale price 10 years: +37%
Median sale price 20 years: +101%
Capital growth (20 years): 3.8% p.a.

INVESTMENT OVERVIEW

Strategy: Off the plan
Upside: Growth prior to settlement
Wholesale bonus: $10k furniture pack
Rent: Furnished
Lending: 80% LVR
Deposit: 10%
Deposit type: Cash, equity
Title: Freehold

THE PROPERTY

Type: Townhouse
Beds/Baths: 2+1.5
Carparks: 1 included
Valuation: Matches selling prices
Internal floor area: 2 bed 70 sqm


Frankton Townhouse MARKET PERFORMANCE

Townhouse median sale price July 19: $423,000

Townhouse sales volume: 11-22 per year

 

Townhouse days to sell: 60

Townhouse sales value: $5-$10 million per year

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


FIRST HOME BUYERS

Dwelling: 2 bedroom townhouse
Purchase price: $497,000
Deposit: 10%
Weekly cost to own: $531
Occupancy: Sole

FIRST HOME INVESTORS

Dwelling: 2 bedroom townhouse
Purchase price: $497,000
Deposit: 10%
Weekly cost to own: $286
Occupancy: With flatmate/s

PROPERTY INVESTORS

Assessed rent 2 bed: $470 - $500 p.w
Year 1 cashflows: 2 bed (+$63 p.w.)
DSR: 1.3
Gross yield: 4.8%


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: $1,452 as per budget

  • Property Manager: NIL

  • First Home Buyers/Investors current rent: $350 p.w.


 
 

About the project

This new development features eight, 2 bedroom contemporary townhouses configured over two levels. Thoughtfully designed for the modern home owner or tenant, it will provide carefree living at a hard-to-find low price point. The decor throughout is neutral, allowing the new owner to add their own personal touches. One carpark per townhouse adds to the convenience

The houses will be provided fully furnished including an open plan designer kitchen, Bosch kitchen appliances, a Fujitsu heat pump/air conditioning, washing machine, 43” or larger HD LED TV, USB charging power point, comfortable beds, curtains and blinds and more. Set on a quiet street, the grounds will be landscaped to create a comfortable outdoor living environment.

This central location is a short walk to all amenities; the Dinsdale Shopping Centre and public transport links for easy commute to the CBD (7 mins), Hospital (8 mins) and The Base (15 mins). The Dinsdale Shopping Centre contains a Countdown Supermarket, medical centre, café, restaurant and bar, public library, fruit and vegetable store, takeaways and much more. All 4-levels of schooling are nearby.

The development is for sale turnkey with a 10% deposit and nothing more to pay until settlement, when the houses will be completed, furnished and ready to live in. The low sale prices mean that these homes qualify for the first home buyer grant.


 
 


Hamilton overview

Hamilton is New Zealand’s fourth largest city and the third fastest growing city after Auckland and Pukekohe and it represents an affordable location with high growth expectations. According to Visithamilton.co.nz the population of Hamilton was estimated at 156,800 in June 2015 - an increase of 15,188 people from the 2013 Census. The city is predicted to grow to 175,000 by 2022. Hamilton is located in the heart of the Waikato, one of New Zealand’s richest regions, responsible for 20% of the country’s total exports. Agriculture, biotechnology, light aviation, transport logistics, science research, education and healthcare lead the Hamilton economy, providing diverse employment opportunities in the city.

  • Hamilton urban area was estimated to have around 188,000 inhabitants in 2015

  • Has a youthful population, with nearly half under 30 years of age.

  • NZ’s longest river, the Waikato, flows for 16km through the city

  • Mild climate & moderate year-round rainfall keep the city and surrounding areas very green

  • Mean temperatures of 18°C in January (summer) and 9°C in July (winter)

  • 135 parks/gardens and 58 sports areas and over 1,000 hectares of open space

  • More than 40,000 tertiary students choose Hamilton’s learning institutions every year

  • Home to the 26,000-person capacity Waikato Stadium