466 Hagley Avenue, Christchurch — Wholesale Property

466 HAGLEY AVENUE, CHRISTCHURCH, APARTMENTS

Well designed, high quality, low maintenance apartments in prime Christchurch CBD park facing location
24 x 1 bed and 6 x 2 bed apartments
Opportunity for additional capital growth before settlement in Dec 2020
Prices: 1 bed $414k - $435k, 2 beds $484k - $495k
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.

SUBURB PERFORMANCE

Dwelling type: Apartments
Market rents 1 bed: $367 - $415 p.w.
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.

INVESTMENT OVERVIEW

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

THE PROPERTY

Type: Apartment
Beds/Baths: 1+1, 2+1
Carparks: No
Valuation: Matches selling prices
Price per SQM: $7,500 - $8,000
Internal floor area: 1 bed 48sqm - 56sqm, 2 bed 65sqm

CHRISTCHURCH CENTRAL APARTMENT MARKET PERFORMANCE

Apartment median sale price July 19: $407,000

Apartment sales volume: 620 per year

Apartment days to sell: 44

CHC City Annual Apartment Sales Value.png

Apartment sales value: $43 million per year

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

FIRST HOME BUYERS

Dwelling: 1 bedroom apartment
Purchase price: $414,000
Deposit: 10%
Weekly cost to own: $468
Occupancy: Sole

FIRST HOME INVESTORS

Dwelling: 2 bedroom apartment
Purchase price: $484,000
Deposit: 10%
Weekly cost to own: $306
Occupancy: With flatmate/s

PROPERTY INVESTORS

Assessed rent 1 bed: $350 - $450 p.w
Assessed rent 2 bed: $450 - $520 p.w
Rent AirBNB: 1 bed $75 - $200 p.n
Rent AirBNB: 2 bed $85 - $260 p.n
Year 1 cashflow: 1 bed -$1 to +$38 p.w
Year 1 cashflow: 2 bed +$12 to +$54 p.w
DSR: 1.4
Gross yield: 4.5% - 5.1%