There are many more tenants out there right now than there are suitable homes available in New Zealand, so the chance to buy a substantial rental property, such as this one, is a once-in-a-lifetime opportunity – especially in one of our increasingly popular regional towns.
Palmerston North Hospital is within easy walking distance of the two dwellings which make up 14 and 16 Freyberg Street in Roslyn, so there are generally a significant number of health professionals amongst its residents.
Owner Cheryl Lentle says that she enjoys having young medics coming to do a gap year after training in Europe or the United Kingdom.
“They’ve really been my main niche market over the 25 years I’ve owned this property and when I realised, quite early on, that most of them came with very few possessions, I decided to furnish all my rentals, which I’ve enjoyed a lot!”
Start your property search
Meanwhile, young workers in other professions also appreciate easy access to the centre of town, so finding and retaining good tenants has never been a problem, Cheryl says.
The property consists of 10 two-bedroom units on a freehold 1392sqm section, over two titles, and it is currently fully tenanted, setting the scene for a seamless handover between current and new owners.
The annual gross income is $171,168, so it’s no surprise that Cheryl has held onto her investment for almost 25 years, achieving strong returns of up to 20%, over that time.
She has looked after the property meticulously, and the units present to a very high specification, but there is still significant scope to add further value if a new owner should wish to do that.
Cheryl says that some – albeit minimal – work will bring them all up to Healthy Home standards.
The homes in the main block have balconies, with pleasant outlooks and generous kitchen, dining and living areas.
Solidly constructed in the 1950s, these units have real character, with glowing timber internal doors. In the main, the bathrooms are compact and contemporary.
Some units have their own garden access, and there are plenty of communal outdoor spaces for rest and relaxation in summer, while children can ride their bikes and scooters around safely.
A large, shared laundry with several washing machines, is an added convenience for tenants, and there is lots of handy uncovered car-parking on-site, along with one garage.
Shelley Grieve at Bayleys Palmerston North, who is marketing 14 and 16 Freyberg Street, along with colleague Maura Tootill, says that they were both very excited to be taking on this listing as Palmerston North is experiencing a spectacular boom, with new industries arriving and a consistently buoyant regional economy emerging.
“This rare opportunity deserves your attention,” she says.
The properties will be sold at auction on June 11.
