Property Report

The lifestyle appeal of this 40 square metre apartment is centered on its prime central city location in Wellington, offering sensational all-day sun from its north-facing aspect and excellent views encompassing the city and harbour glimpses. This configuration makes it highly desirable as a secure crash pad for professionals or as dedicated student accommodation, supported by the vendor's history of 18 years of virtually continuous rental income. Amenities are dictated by the central location, providing hard-to-beat access to key city hubs, including Lambton Quay and Parliament, alongside being a short walk to Victoria University. The unit itself is well-presented, featuring a modern kitchen equipped with essential appliances like a dishwasher, oven, fridge, and microwave, minimizing immediate capital expenditure for a new owner. The market context reveals conflicting data regarding the property's true nature, with one source detailing a 1-bedroom unit with a 2018 Rateable Value of $235,000, while others reference a 5-bedroom, 250 square metre house sold for $1,879,000 in 2017. For due diligence, we must proceed assuming the unit profile is correct, placing its entry point significantly lower than surrounding residential sales, which average over $1.3 million for larger homes. Construction and maintenance considerations are typical for established apartment complexes. While the year built is unknown, the unit is described as well-presented. The primary ongoing financial liability is the body corporate fee, noted at $6,268.20 per annum, alongside WCC rates of $1,595.80 annually, which must be factored into holding costs. Financing for an entry-level investment like this, based on the low $235,000 CV, would be highly accessible, potentially requiring a smaller deposit and yielding favourable loan-to-value ratios compared to larger properties. The strong rental appraisal of $390 to $420 per week suggests a robust gross yield, making servicing debt manageable even if interest rates fluctuate. Risk mitigation centers on verifying the unit title structure to understand shared liability and the adequacy of the body corporate's sinking fund, especially given the age implied by the 18-year ownership history. While the central location reduces vacancy risk, standard Wellington seismic risk remains inherent to the building's structure. Planning potential for this specific unit is limited to internal refurbishment or minor value-add projects, as intensification is governed by the overall building's height and density controls. The zoning confirms catchment for Wellington Girls' and Boys' College, which provides a strong floor for long-term capital retention, appealing to investors targeting long-term family tenants. Sustainability factors are not explicitly detailed, but the compact 40 square metre footprint inherently supports lower energy consumption compared to the larger properties detailed in conflicting reports. Focus should be placed on the efficiency of the listed appliances and heating systems. Exit considerations benefit from the unit's dual appeal: it serves as an affordable entry point for first-home buyers or a high-yield asset for investors. Liquidity is expected to be relatively strong due to the consistent demand for central, compact living spaces in Wellington. Scenario analysis suggests that if the unit is indeed valued near its 2018 RV, it represents a significant discount to the surrounding market, offering substantial immediate equity upside if the market recovers or if the unit is successfully renovated to capture higher rental premiums. Unique differentiators include the specific mention of being the 'north end' unit for all-day sun and the documented history of continuous tenancy, which provides tangible evidence of tenant demand and low management overhead for the previous owner. In conclusion, this property offers a compelling, low-entry investment proposition focused on rental yield, provided the due diligence confirms the unit's specific title details and separates it clearly from the larger, more expensive residential property data associated with the same street number.