Wellington has been named the world’s third hottest real estate market by global property analysts Knight Frank, and buyers can now expect to shell out seven figures for a home there.
But for those whose budgets don’t stretch to $1 million there are properties on offer for ultra-low prices.
Start your property search
Tommys Real Estate has just listed a one-bedroom apartment in the central city with a fixed price of $250,000 - around $500,000 cheaper than most of the lowest priced apartments in the capital.
There is a catch, though. The apartment is small at 20sq m and for the moment buyers would not be able live in it as it is subject to the terms of a five-year lease agreement.
The upside for investors is the low price, the apartment’s prime location, next to Lambton Quay, and the fact that the building is run by Quest hotel apartments, which does and all the hard work, from cleaning to renting.
Agent William Cummings said the lease on the apartment had just been renewed for five years, running out in September 2026.
The unit is 20sqm in size – and has a five-year lease that runs until 2026. Photo / Supplied
Not many low fuss arrangements like this come up in Wellington, he said.
“You own the apartment but you have an agreement to rent it back to Quest who rent the apartment for you and manage it and you just receive the rental income.”
The rental income is $15,672 a year and of that you pay the body corporate fees of $2,671.50 and the rates, currently $2,577.96 a year, but the rest owners could pocket.
Cummings said that purchasers would have the option to either renew the lease once it ran out or live in the unit title apartment themselves.
The apartment was always rented, normally to staff within the building, he said.
“It’s quite straight-forward. You pay your body corporate fee and your rates and you keep the extra.”
Nicki Cruickshank, principal of Tommys, said the apartment was a good opportunity for those wanting a hands-off investment.
“It’s a good way for someone really young to get a start in the market. Get someone else to pay the mortgage for five years and you’ve got yourself a foothold in the market – it’s definitely a good thing for a young person to consider to get themselves into the market because there’s nothing else for $250,000.”
