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High Investment Returns for Unique Rental Property

High Investment Returns for Unique Rental Property

Dreamtime Cabins offer a unique option for investors wanting a guaranteed yield of 10-12%.

27 March 2024

Dreamtime Cabins has a long history of providing high-quality cabins to Kiwis who need an extra room – be it a sleepout or studio. New Zealand owned and operated, Dreamtime Cabins are looking for investors who are interested in partnering with them to provide rental cabins for people who need more space.

The formula is simple.

Investors buy an agreed number of cabins, which they own outright. Dreamtime Cabins rent these out on their behalf.

The investor gets paid an agreed return in 12 monthly installments each year – as this is rental income, the payments are GST free. The cabins are also fully depreciable and can be used to offset tax, but it’s recommended that independent advice from a reputable accountant is taken first if this path is chosen.

Passive income

Dreamtime Cabins manage dealings with contracted tenants, the delivery of the cabins, and ongoing maintenance. At the end of the agreed term, the investor can use the cabins themselves, sell them, or leave them as part of the Dreamtime Cabins’ rental fleet and continue to receive their monthly payments. It's safe and secure passive income.

Current market conditions make it extremely hard for people to buy – or even rent – suitable housing. House and rental prices are both prohibitively high, and coupled with high net immigration, there’s not enough residential property to go around.

Dreamtime Cabins offer a cost-effective solution to the current housing crisis. Large or multigenerational families, and property investors looking to increase yield, can add an extra room for a fraction of the cost of building a new one. They don’t need council consent and the cabins are warm, dry and welcoming.

In a nutshell, Dreamtime’s rental cabins represent a paradigm shift when it comes to accessible and affordable housing.

Simple real estate investing

Cabin ownership also offers investors a simple and inexpensive way in which to invest in property. Richard Bews, Sales Manager, explains that the cabins tend to maintain or increase value over the years, in a similar way to regular homes.*

“Building materials increase in cost over time, which means cabins may sell for more than they were purchased for,” he says.

Dreamtime Cabins offer rental clients fully customisable solutions, which in turn provide investors with impressive passive returns. Entry rate is $60,000, with investments of $200,000 and above also an option. The bigger the investment, the higher the return percentage.

Unlike some competitors, Dreamtime Cabins use H3 tanalised timber, Expol-X polystyrene insulation, and double-glazed aluminium joinery. They are extremely well-made and adhere to all Healthy Homes requirements (a prerequisite for any rental property).

The design of the cabins is modern and stylish, and they have the same lifespan as a modern, timber-framed house.

If you are interested in exploring cabins as an investment option, visit dreamtimecabins.co.nz, email sales@dreamtimecabins.co.nz or call 0800 830 880 for more information.

* Note: capital gains not guaranteed.

Informed Investor's content comes from sources that Informed Investor magazine considers accurate, but we do not guarantee its accuracy. Charts in Informed Investor are visually indicative, not exact. The content of Informed Investor is intended as general information only, and you use it at your own risk.