Experienced investor: Manurewa

Meet Priya, who owns 3 rental properties and talks about the ROI of converting the garage of a property into a sleepout.

Number of investment properties: Three

Property descriptions: All of our properties are stand-alone houses, with two 3-bedroom houses and one 3-bedroom house including a sleepout

Location of properties: Manurewa

Name of Property Manager at Barfoot & Thompson: Tracey Preston, Manurewa

Want to take part in our investor interviews? Email syu@barfoot.co.nz

When did you purchase your first property?

October 2014

When did you purchase your last property?

April 2016

Why do you invest in property?

The main reason is for our retirement. We are not into buying and selling.

Which one has been the most successful investment, and what has made it successful?

With the last investment we bought, we converted the garage into a sleepout and made it into a fourth bedroom - giving us extra rent compared to what a 3-bedroom would have given us. No council permits were required to do this.

The rental appraisal prior to the do-up and conversion was $440, now we get $520 a week for it, although we did spend $35k doing it up as the property was a little run down. We strongly believe that you cannot secure good tenants if your property is run down.

We have three properties, all with potential to build a minor dwelling for approximately $200k, and with a rental potential of $450, the ROI would be over 11.7%.

Do you have any other investments other than residential property?

No

Do you have a specific philosophy for property investment (or investment overall) that you follow?

We try to invest in up-and-coming areas and in properties which have a bit of potential for future development, possibly doubling the rental income. We make sure the rental income covers the mortgage payments so that it does not put any financial burden on us. 

What are the key things you look for when investing in property?

Land area, rental income potential, location, neighbourhood, potential for future development (i.e. adding a sleepout, adding a minor dwelling, etc). 

Do you use a property manager for all of your investments?

Yes we do, as we both work full time. 

What is the most important lesson you have learned during your property investment journey?

In order to attract quality tenants, you need to spend a bit of time and money to keep your property up to a certain standard. I would not rent out a property I personally would not live in - this is the rule we always follow!

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