Update: Turangi Property

I listed my property in Turangi in December. It appears that the market is not interested in do-it-up properties. Despite, according to the agent, numerous viewings and potential purchasers being “enthusiastic” or “showing interest,” I have not received any offers during the sole agency period. It seems as though potential purchasers see the property as “too much work.” This is despite it being the cheapest listing in Turangi. I have decided that I will do it up and rent it out. My reasoning behind this is that rents have increased significantly over the last 18 months. By investing in a new kitchen, bathroom and carpet I should be able to get $350 to $380 per week rent. The payback period on repairs and maintenance will be approximately 18 months based on the estimated net rents.

I’m not enthusiastic about the time involved in doing it up. I have spent so far 2 weeks in January plus Auckland anniversary weekend doing work on it. I worked Waitangi day (Wednesday 6 February) so that I could work Friday and Saturday on the property. However, I do see the long term financial benefits of doing the work. When finished it will attract a better standard of tenant and higher rents. Or should I wish to list the property again it will improve the chances of a sale.

My wife is not enthusiastic as it will take up a every second weekend of my time. This means she is left looking after two children (approximately 4 years old and 2 years old) by herself while I am away. I do miss spending time with my family in the weekends. With both of us working I only see my kids during the week in the mornings at breakfast and at dinner/bed time.

However, as I see it once all the deferred maintenance is sorted it should be easier to manage and not take as much time. I have learned my lesson and will not to defer maintenance. As it ends up compounding thus becoming a real problem that consumes a lot of time later.

I will post some pictures of the work as work has been completed.