Property Report

The lifestyle appeal of 112 Calabar Road is anchored in its Miramar location within Wellington, a suburb highly sought after for its coastal access and established community feel. This residential setting is strongly supported by the educational infrastructure, providing access to several schools including Evans Bay Intermediate and Wellington East Girls' College, both within a short distance of 1.15 to 2.79 kilometres, making it attractive for families prioritizing schooling. Regarding local amenities, while specific retail or service proximity is not detailed, the property's location within Wellington City suggests reasonable access to essential services. The presence of a deck enhances outdoor living, and the level contour of the 228 square metres site simplifies usability compared to steeply sloped Wellington sections. The current market context shows significant price dispersion among nearby comparables, with sales recorded between $785,000 and $1,570,000 in the provided 2025 dataset, indicating that condition and specific location within Miramar heavily influence realized value. The property's Capital Value of $740,000 (as of September 2024) suggests it may be priced below the upper end of recent sales, but this must be weighed against its age and condition. Construction and maintenance present a primary concern, given the 1920 year built. The wooden external walls and iron roof, both rated in average condition, signal potential deferred maintenance, particularly regarding weathertightness common in structures of this vintage. Immediate capital expenditure for insulation and weatherproofing upgrades should be budgeted for. Financially, the estimated rental appraisal of $4,186 per month suggests a gross yield that could potentially cover holding costs, making it viable for investors seeking immediate income. However, this positive cash flow projection is highly sensitive to the actual acquisition price and prevailing interest rates, which are not explicitly provided for this transaction. Risk mitigation must focus heavily on technical due diligence. A comprehensive building inspection is crucial to quantify the necessary capital expenditure related to the 100-year-old structure. Furthermore, the legal title requires careful review concerning the noted easement and the potential for mixed-use activity stemming from the registered company at the adjacent address. Planning potential exists due to the property's residential zoning, although specific height and density rules are unknown. The 228 square metres land area, while modest, might allow for minor additions or a secondary dwelling, contingent upon Wellington City Council's current intensification policies and site constraints. Sustainability considerations point towards necessary upgrades to meet modern thermal performance standards. Renovating a 1920s timber home offers an opportunity to significantly improve energy efficiency through insulation and modern heating systems, enhancing long-term operational costs and tenant appeal. Exit considerations benefit from Miramar's established reputation, suggesting strong long-term capital growth potential, especially if the property is renovated to modern standards, aligning it closer to the higher-priced comparables. Unique differentiators include the property's character elements inherent in its 1920s construction, combined with the practical features of a deck and level contour, offering a blend of charm and functionality. Scenario analysis suggests that an investor proceeding must budget for significant CapEx to bring the structure to excellent condition, which would then unlock higher rental returns and capital appreciation, mitigating the risk associated with the 'average' condition rating. In summary, this property offers a foothold in a desirable Wellington suburb with immediate rental income potential, but the investment thesis hinges entirely on successfully managing the inherent risks associated with its age, maintenance status, and unclear legal/zoning interface.