Rentals in Wanaka, Queenstown Lakes District, New Zealand. How Much Rent Will my Wanaka Investment Property Receive?
This is the most common question I get asked. You may hear about the high rental cost of Wanaka holiday homes and permanent rental accommodation and you want to know what is the current rental and what return can you get on your purchase besides capital gain.
Our accommodation rentals at Professionals Wanaka Wide Realty MREINZ tells us these facts. A good 3 bedroom Wanaka home is currently renting out at $350 to $380 a week. To get the higher price tenants are looking for a log burner as opposed to gas or electricity, a double garage, double glazing and two bathrooms. Four bedroom homes are renting at $400 to $420 a week. Homes at Hawea and Albert Town are also popular but usually rent out at about $10 less a week. Currently our top permanent rental, a lovely furnished Wanaka home with all the trimmings, is rented out at $475 per week and the tenants vacate the home for the landlords annual holiday.
There is a huge demand for permanent rental accommodation. The largest demand at the moment, is for unfurnished homes. Rent for these reaches the same rent as fully furnished homes. Some landlords include a clause to allow them occupancy for a few weeks a year, all things are possible as dictated by supply and demand. Shortage of permanent rentals is greater during the winter months.
A word on cribs. At Hawea an older two bedroom crib may reach as much as $170 a week and a three bedroom crib $200 to $225 a week.
Permanent residential rental is not subject to GST so the original purchase cannot be claimed.
Short Term Wanaka Rentals
So you decide to buy a house but want to use it yourself several times a year. You decide to rent it out as a holiday home from time to time. This works well, however in the off peak periods there is a glut of short term holiday accommodation on the market so it is likely that although the rates for short term accommodation are higher than permanent rental accommodation (about 5 times higher) you may find it difficult to rent. Because the prime purpose of the purchase of the property was for your own use, you would also not be able to make a GST claim.
Should you decide to buy a property such as an apartment which is managed on a daily or weekly basis and offer it for short term rental all year round then you are eligible to register for GST and claim the original purchase. Often these properties are already advertised at the GST exclusive amount plus GST.
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Article by Phil Wilson Marketing Consultant for Wanaka Real Estate Sales Blog