64 & 66 LONGFELLOW RD, SYDENHAM, CHRISTCHURCH, TOWNHOUSES

  • Well designed, high quality, low maintenance townhouses in strong rental demand location

  • 9 x 1, 2 & 3 bedroom townhouses

  • Opportunity for additional capital growth before settlement in late 2021

  • Prices: 1 bed $390k, 2 beds $485k - $495k, 3 beds $580k - $599k

  • 68% of dwellings in this suburb have 1-2 occupants and 30% have annual household income of $70k+

  • The Christchurch market is undervalued based on the historical growth performance and growing gap between Christchurch and national average. 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: Unfurnished / Furnished
Lending: 80% LVR
Deposit: 10%
Deposit type: Cash, equity
Title: Fee Simple

THE PROPERTY

Type: Townhouse
Beds/Baths: 1+1, 2+1, 3+2.5
Carparks: Off-street for 2 & 3 beds, on street for 1 bed
Internal floor area: 56 - 98 sqm
Land size: 87 - 188 sqm

SUBURB PERFORMANCE

Dwelling type: Townhouses
Market rents 1 bed: $310 p.w
Market rents 2 bed: $410 p.w.
Market rents 3 bed: $450 p.w.
Median gross yield: 5.1%
Median sale price 10 years: +68%
Median sale price 20 years: +220%
Capital growth (20 years): 6.3% p.a.

SYDENHAM TOWNHOUSE MARKET PERFORMANCE

Townhouse median sale price Aug 20: $461,000

Townhouse sales volume: 30 - 40 per year

Townhouse days to sell: 29

Townhouse sales value: $11 - $14 million per year

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

FIRST HOME BUYERS

Dwelling: 1 bedroom townhouse
Purchase price: $390,000
Deposit: 10%
Weekly cost to own: $420
Occupancy: Sole

FIRST HOME INVESTORS

Dwelling: 2 bedroom townhouse
Purchase price: $485,000
Deposit: 10%
Weekly cost to own: $310
Occupancy: With flatmate/s

PROPERTY INVESTORS

Assessed rent 1 bed: $350 - $385 p.w
Assessed rent 2 bed: $380 - $450 p.w
Assessed rent 3 bed: $430 - $500 p.w
Year 1 cashflow: 1 bed +$24 p.w
Year 1 cashflow: 2 bed +$6 p.w
Year 1 cashflow: 3 bed -$18 p.w
DSR: 1.4 - 1.6
Gross yield: 3.9% - 4.6%

Note: Cost to own and cashflows are approximate examples only. Actual results achieved will vary based on purchase price, interest rate, deposit %, providing carparks, providing furniture, insurance, property rates and rental rate.

PRICE AND AVAILABILITY SUMMARY

Note: The NSA/Net Sqm/Int. SQM area is calculated from the mid-point of the inter-tenancy wall to the external face of the façade as per PCNZ Guidelines.

ANALYSIS ASSUMPTIONS

  • Loan length: 30 years

  • Interest rate: 3.0%

  • LVR: 100% Investors / 90% Home Buyers

  • Rates: $2,500 - $3,300

  • Insurance: $1,500 - $1,800 p.a

  • CPI: 3.0%

  • Capital Growth: 6.3%

  • Legal/Loan fees: $2,000

  • Rent: Market rents appraised by property manager

  • Body Corporate / owners levy: $200

  • Property Manager: 10% of rent

  • Vacancy Rate: 1 week p.a

  • First Home Buyers/Investors current rent: $310 p.w.

 
 

PROJECT OVERVIEW

Located on Longfellow St, these Townhouses are just a stone’s throw from the Central City and are walking distance to local shops, transport, parks and a vast array of other amenities. It is with no doubt that finding new homes at an affordable price point is only going to get increasingly harder as Christchurch City’s population grows.

On the Ground Floor, the kitchen, dining and living areas are open plan. There is a Washer/Dryer Combination conveniently located within the kitchen and a large storage space under the stairs (additional storage space also upstairs). The larger Townhouse has a separate toilet and an additional bedroom with a large built-in wardrobe. Upstairs is either 1 or 2 full size bedrooms, which include large built-in wardrobes. Also upstairs is 1 full size bathroom. Outside is a low maintenance private courtyard, which includes a Clothesline, Storage/Bike Shed and power supply.