olds cres Cromwell, OFF THE PLAN TOWNHOUSES, with rent by room options

  • Well designed, high quality, low maintenance townhouses in unique location 45 minutes from Queenstown

  • 20 year capital growth average for suburb is 10.6%

  • 6 x 3 bed / 3 bath townhouses in boutique development

  • Opportunity for additional capital growth before settlement in mid 2020

  • Prices: 3 beds $637k - $735k

  • The Cromwell market continues to go from strength to strength off the back of Queenstown and Wanaka’s growth. It’s become a satellite town for Queenstown, as workers choose to commute from locations like Cromwell where its more affordable to live.

  • With the 3 bed / 3 bath format you can rent the entire townhouse unfurnished or rent furnished by the room to singles or couples to maximise yield and generate positive cashflows up up to $210 per week.


INVESTMENT Overview

Strategy: off the plan
Upside: Growth prior to settlement
Rent: Unfurnished or furnished
Lending: 80% LVR
Deposit: 10%
Deposit type: Cash, equity
Title: Freehold

Suburb Performance

Dwelling type: Townhouse
Market rents 3 bed: $550-580 p.w.
Median gross yield: 5.15%
Median sale price 10 years: +97%
Median sale price 20 years: +577%
Capital growth (20 years): 10.6% p.a.

The property

Type: Townhouse
Beds/Baths: 3+3
Garage: 1
Valuation: Matches list price
Internal floor area: 133 - 167 sqm
Land area: 221 - 309 sqm


Cromwell house & Townhouse Market Performance

House/Townhouse median sale price August 19: $650,000

 

House/Townhouse days to sell: 39

House/Townhouse sales volume: 200 per year

 

House/Townhouse sales value: $140 million per year

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


First home buyers

Dwelling: 3 bedroom townhouse
Purchase price: $637,000
Deposit: 10%
Weekly cost to own: $694
Occupancy: Sole

First home Investors

Dwelling: 3 bedroom townhouse
Purchase price: $637,000
Deposit: 10%
Weekly cost to own: $417
Occupancy: With flatmate/s

Property Investors

Assessed rent 3 bed: $550 - $620 p.w
Assessed rent by room: $225 p.w singles / $285 p.w couples
Year 1 cashflows: ( -$34 to $209 p.w.)
DSR: 1.1 - 1.6
Gross yield: 3.5 - 5.3%


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: $3,000 - $3,500

  • CPI: 3.0%

  • Capital Growth: 7.5%

  • Valuation: Matches listing prices

  • Legal/Loan fees: $2,000

  • Rent: Market rents appraised by property manager

  • Body Corporate: N/A

  • Property Manager: NIL

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


 

 
 


Project overview

This project is boutique development in a location that has both a shortage of rental accommodation and of good quality housing stock. This is purpose designed to appeal to owner occupiers and investors and the 3 bedroom, 3 bathroom floor plan provides multiple rental strategy options.


Cromwell overview

Cromwell is a town in Central Otago in the Otago region of New Zealand. Cromwell is between State Highway 6 (linking to Wanaka, 50 km north, and Queenstown, 60 km west) and State Highway 8 leading to the Lindis Pass, 75 km northeast, and Alexandra, 33 km south. The road to Alexandra winds through the Cromwell Gorge. A point near Cromwell lies 119 kilometres from the sea, the farthest from the sea anywhere in New Zealand. A prominent feature surrounding much of the town is the man-made Lake Dunstan. Cromwell also has the newly constructed Highlands Motorsport Park. Nearby settlements are at Bannockburn, Lowburn, Tarras, and Ripponvale. Cromwell continues to grow in demand off the back of Queenstown’s and Wanaka’s rising populations and property values.