There is huge unsatisfied demand for reasonably presented rental properties, since the stock of rentals has rapidly decreased: mainly because 7 out of 10 sales of residential properties in Tokoroa are to owner-occupiers moving Tokoroa from surrounding areas such as Taupo, Hamilton, Cambridge, Tauranga etc where property prices and rents are many times higher.
Rents range from $160.00 – $220 for lower to mid range properties. Weekly payments cover everything (interest, rates and insurance) but not maintenance.
There is huge interest – we sell, on average, 2 -3 properties per month. There are employment opportunities, although many of my buyers are happy to commute. (believe it or not, I know of one guy who travels to AUCKLAND every day).
Remember also, there are the usual “bank of beneficiaries” who account for most of the lower end rental market. (Having said that, the demographics are virtually the same as any other provincial area, or low to middle class suburb).
Tokoroa is now booming (population up from 13,000 to 17,500 in the last 2 years) and will likely out-perform every other Provincial centre as current forestry land is rapidly being converted to valuable dairy farms.
Tokoroa already has an enviable infrastructure, and with changes in Transit Roading policy in the near future, will soon find itself as the main centre of the South Waikato district.
Whilst we refer to this as a Rent To Own, legally you are entering into a binding, enforceable and unconditional contract to purchase the property with a Deferred Settlement (for up to 5 years), during which time you pay a weekly amount which includes interest, rates and insurance PLUS a weekly amount of a minimum $30.00 per week which is credited towards your deposit.
The only criteria we insist on, is your ability to pay the weekly repayment amount.
The object of this arrangement is to get you into a situation whereby you have sufficient equity (deposit) in the property within the term of this agreement that you are realistically in a position to obtain a mortgage from a Bank to enable you so settle and take title to the property.
If you qualify as a first home buyer under the Kiwi Saver scheme, you will be required to have ass little as 10% deposit in order to obtain a mortgage at the end of this contract. You are additionally entitled to a $5000 grant from the Government towards the purchase of your first home.