|Investment Property Snapshot|
|What: A 59 square metre retail premises.|
|Where: Wairau Junction Retail Centre. 5/160 Wairau Rd, North Shore.|
|Sold for: $415,000|
|Net rental Yield 6.02%|
At just 59 square metres, the retail premises at 5/160 Wairau Rd on Auckland's North Shore was almost small enough to put in your back pocket.
And it had a price to match.
When it was auctioned by Bayleys' last week it sold under the hammer for $415,000.
In Auckland's residential investment market, your choices around that price might be limited to a shoebox student apartment in the CBD.
But the commercial unit would likely give a much better return.
The tenant operated an Indian takeaway from the premises on a 10 year lease which commenced in 2013.
Rent was $25,000 (plus GST) a year, and like most commercial leases, the tenant pays the outgoings such as rates and insurance.
So the investors that brought the property last week will be getting a net rental yield of 6.02%.
Most residential properties would struggle to provide a gross rental yield (with the landlord paying outgoings) that came close to that.
Not surprising then that Bayleys' agent Matt Lee, who marketed the property with his colleague Terry Kim, said much of the interest in these types of properties was coming from mum and dad investors who were looking to diversify away from the residential market.
Much of the similar stock coming on to the market was new builds in areas servicing new developments on the fringes of the city, but the Wairau unit had the added advantages of being in a mainstream location with an established tenant, he said.
You can check out the details and selling prices of many other investment properties that have recently sold, on our Commercial Property Sales page.
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