Rotorua property auction delivers varying results

A house on the corner of Te Ngae and Owhata Rds failed to sell at a Professional McDowells auction last week.

The property suits an investor as it has two tenancies, on periodic leases, and returns $350 in rent a week.
A periodic tenancy is one that continues until either the tenant or the landlord gives written notice to end it.

Two bidders took the price up to $250,000 but that was insufficient to satisfy the vendors.
If sold at that price the property would have a 7.2% gross yield.

The property has an RV of $180,000 and is on a 1,072m2 section.
Since the auction the property has been priced at $299,000 and the listing says the “two tenants would like to remain.”
However, the rent is now reported to be $345 per week. With these numbers the property represents a 6% gross yield.