Home-and-income option in big Mt Eden property

By Colin Taylor www bayleys co nz/1650350

22 Ellerton Rd, Mt Eden.
22 Ellerton Rd, Mt Eden.

A large mixed-use Mt Eden property with a preschool tenant occupying part of the site and a residential dwelling on the balance will go under the auctioneer's hammer this month.

The property, at 22 Ellerton Rd, is a full section of 936sq m, says Harry Cheng of Bayleys Real Estate who, with colleague James Chan, is marketing it for sale by auction on April 30 unless it sells first.

A building at the rear of the site with its own gated entranceway is occupied by longstanding tenant Smart Start Montessori with its current lease running for six years from September 2011. The lease has one six-year right of renewal, and is producing annual rental income of $40,040 plus GST.

Smart Start Montessori Preschools was established more than 20 years ago and operates two preschools in Mt Eden, offering an early childhood education programme using the Montessori method of teaching which provides for the whole emotional, spiritual, physical and moral development of the child.

A structured learning environment focuses on practical life, the five senses, language and maths.

Classes at Smart Start Montessori Preschools, which also has a facility in Grange Rd, Mt Eden, are limited to 20 children (a ratio of 10 children to one teacher) to create an intimate learning environment.

The two preschools give 20 hours of Government-funded early childhood education, with before and after session childcare, and have a recently established holiday programme.

The Ellerton Rd property also has a five-bedroom character bungalow which has driveway access into an internal two-car garage off Ellerton Rd, as well as off street parking.

It has a large, modern kitchen and two modern bathrooms, including an en suite in the master bedroom.

Cheng says the house, which has been occupied by a relation of the owner, is in good condition and is being offered for sale with vacant possession.

He says there is strong demand for rental properties in Mt Eden and the house has a recent indicative rental appraisal of $1000 to $1200 a week.

"The property is in a quiet tree-lined street close to the intersection of Mt Eden Rd and Balmoral Rd and is only a short distance from Mt Eden village," says Cheng.

Chan says the property offers several options for a purchaser.

"It is an add-value opportunity for an investor who could increase the property's income significantly by also renting out the home.

"It could also suit a couple or family looking for a house in a centrally located, sought-after suburb who could use the rent from the preschool tenancy to help pay off the mortgage.

"Either way this is a superb investment opportunity given the strong underlying location which is expected to grow in popularity."

- NZ Herald

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