I am attracted to the idea of buying another property a couple of bays away from where we live. This is a large 2-storey place right on the water at the end of a bay.
The current asking price is $799,000.
I have no spare money, in fact we owe the bank about $80k. I have no current income - The Old Girl pays all the bills. I have decided to join the real estate industry - yesterday The NZ Herald reported that in Auckland alone 2,000 real estate agents abandoned the industry last year, a 20% drop. In Northland the number of agents are 29% less than last year. Am I crazy? Maybe.
My idea is to buy this property and run some sort of business from it to pay the mortgage which, if I got the house for say $700,000 would be about $42,000 per year. As it is a large and attractive section, a 310 sq.m house with 3 garages and a completely separate downstairs area I figure that I could use the upstairs area (3 bedrooms, lounge, dining, kitchen, bathroom etc.) as a summer and short term holiday rental. I figure that this should bring in about $30,000 per year as the location is desirable.
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| Upstairs living area |
I would use the downstairs area and one or two of the garages for running some other business. The first that springs to mind is a kayaking hire business. This property is right on the water (which is not tidal at this point) and kayaks and boats can be launched easily at any time of the day. I figure that with summer, holidays and weekend hire the income would be at least $20,000 per year and probably more without a lot of marketing effort. The excellent location would see to that.
Running a kayaking and holiday rental business would not make a lot of money but I am really only looking to cover the mortgage payments.
I could also use the downstairs area as an office and base for my real estate and consulting businesses.
Does anyone know an obliging bank manager?
8 comments:
Yes, but...
if I was looking for a beach house to rent out with my friends I would not be that keen on one that has a kayaking hire business underneath- with the thought of being woken up to the sound of children yelling with excitement as they get their canoe- or that busy sound of people coming and going.
Just saying, but then again you're just dreamin'?
Thanks Nicola. That's the sort of practical feedback I was looking for. Bugger!
Lovely looking house.
And so near the beach.
Just think of the fantastic views of the next Tsunami as she rolls in.
I told my beloved, who wants a house just like the one pictured that we could get one if it was at least 50m up on reinforced concrete supports.
And preferably behind a nice 100 m high wall.
We have just been looking at the rent a house versus motel option in Ohak ....south of Ruapehu!
You are right that it is attractive especially for families. I would think the option to rent a kayak downstairs a bonus.
TSB, my wife works at GNS and they think the same as you. But what about landslides, subsidence, avalanches, sink holes, and liquidifaction!
I've just been over my figures again. I reckon that it will work without needing the house rental although that can be the 'cream' (Thanks Robert, the option of rental of house with the advantage of kayak rental probably outweighs Nicola's reservations.) I just hope that the property is still unsold when I get back from China in September.
P.S. Robert, you are most welcome to come and stay up here. Why not consider it anytime even when I am away so you can have the house to yourselves.
That's really kind. Thank you. But wouldn't we need a night stop if we were driving that sort of distance?
"But wouldn't we need a night stop if we were driving that sort of distance?"
What?
You can stay as long as you like.
I think I see what you mean now.
No night stop need.
7.5 hours to Auckland
2.5 hours Auckland to McLeod Bay.
A lunch stop (and an afternoon tea stop at Kaiwaka's Italian bakery) is all that is needed.
Cheers,
Peter
PS. pick me up a cream doughnut on the way through.
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