Bayleys sold 16 of 38 Auckland auction properties last week, with the remaining 22 passed in, postponed or withdrawn from sale, giving an auction clearance rate of 42%.
Among the properties sold was a large character home in Herne Bay that was in three flats and ready for refurbishment, which sold for $1.52 million.
The most expensive sales of the week were both on the North Shore where a potential redevelopment property at Takapuna sold for $2.2 million and a Devonport villa fetched $2.05 million.
Among the cheaper properties were a three bedroom house at Forest Hill that sold for $780,000 and another in Manurewa that went for $710,000.
See below for full details of last week's Bayleys auctions, with photos and details of all properties, including those that didn't sell:
46 Comments
You do what you need to to offload some auckland rubbish before the market really tanks.. learnt from the best... No not at all, Ive been a bear on auck property for last 2 years, granted if you had bought 2 years ago you're probably still ahead, but may not be for long
Agree. There will be tears.
http://www.interest.co.nz/property/74363/olly-newland-says-property-inv…
If you only bought three months ago, those wouldn't amount to anything at all. I was metely talking about prices at face value.
As for me, I don't own any investment properties so it makes little difference to me. If the market goes tits up I might be on the lookout to acquire some though.
So CV of 790k at sept 2014, prices WERE up 25% on year on year in September, so correction of around 25% already on the cards. I know of a number of similar examples also of places struggling to get close to the sept 2014 GV prices at auction. Any one who bought between then and now could see a 100k or more down the drain
Yeah - plaster homes will be the ones to really suffer first.. (There has been a lot of bad press about new immigrant building standards but remember these houses were built by the local top notch kiwi builders who now consider themselves brain surgeons with the rates they are charging)
With the plaster house sales a falling tide shows who has been bathing naked etc etc.....
Bought a plaster home not so long ago. Allowed me to get into a good suburb, with a good plot of land (623sm) and the only reason i could have afforeded it, was because of the stigma around plater clad homes (got a builders report and a cladding expert in to give it the once over). Warm, secure for the kids, low maintenance, good location, so not all bad ...
get an old time builder to look at it for you.
plaster clad and watertight do not go together. all it takes is one little crack water gets in and because new houses don't have breathable vents it does not dry or escape.
your best bet if you can afford it is to reclad
I'll leave it to the experts ... Plaster clad on cavity blocks plus a sizable cavity into the inside wall should do the trick. Having came from Europe where thats pretty much standard, but in a more extreme climate, i was happy with that .. Anway, back to topic, plaster clad is not the end of the world, just worth doing some pre work before you buy.
And for what its worth, i think the prices will drop again for another few months before it return's to BAU early next year. If i was an investor and could afford to hold out from selling for a few months, i would :-) I have said it before, but there are a lot of people on this site that all they seem to do is see the dark cloud in the silver lining for whatever reason when they should be trying to see the wood from the trees. That is all :-P
Nothing wrong with plaster clad, like any disaster it takes a series of events and not a single event to cause major problems. As long as it has eves, window flashing and a roof that doesn't leak and you clean your gutters once a year you will not have a problem with it. If the design was wrong and the builders were useless then you have something to worry about.
Of course xelnaga... all's well in landlord land. In my own situation, I have been advised by property managers that rents on several of my properties are rising by the amount of $50 per week (per property).
I am very happy with that and have no reason to sell. Not that I ever would.
When prices are rising we are told they're just paper gains and we can't factor them in until we sell. If prices are declining (which I think in a few months we will see they are not) shouldn't the same hold true? Anyway increasing rents are better than increasing values for most true investors. Increasing values are just a nice bonus... and generally lead to increasing rents.
Frazz, my friend, not everybody bought their investment property last week!
I am a long long-term property investor. Of course I have maintenance expenses but the minimal costs of my mortgages ( NB: I don't ever want to be mortgage free because no borrowings is inefficient use of my capital) mean the yields I get can easily cover all expenses and leave plenty of dough left over.
You say yields are poor. I say look at the long-term property investor's situation. In my case, a lot of properties I own are now yielding circa 20% (yes... 20%) ON PURCHASE PRICE.
Gosh mate, the lesson I keep proving to myself every day is the longer I own property the easier it is to finance it, and buy more. And, 'cause I ain't ever gonna sell, rent increases are more use to me anyway.
Hi Mastery, all the properties I own are "cash-flow positive" (as the saying goes). There's money left over after all my costs. If I sell one I will reduce my income.
So why sell one?
I have always had a long view about property. I buy them and concentrate on reducing the borrowings to a point where my overall cash flows are what they were before I bought. When yields are low (like now) I am glad I don't have too much borrowings. When yields rise, the extra cash means I can afford to borrow a bit more and operate with higher loan-to-valuation ratios.
I am conservative... for sure. But that's what an investor is, compared to a speculator (which is what most people on this site seem to be) or a developer.
My properties are in Auckland, north and south of Auckland's harbour bridge and in several North Island provincial cities. The Auckland properties have provided good capital growth but the provincial properties have provided better cash flows to help fund everything.
There seem to be a lot of landlords selling up in taupo. Several comments have come back that these were investments made in the 2006 era, thereafter prices dropped substantially and the recent movement in properties is giving them an out. My assessment of the properties is this. They are a mess. The little spent on some of them has since been erased by yet another tenant, most have had no upkeep. In general the housing in Taupo is awful anyway. A lot of the hardiplank tiny boxes of the 70s and 80s. We went to see one recently, private sale open home. The pics showed a spotless repainted new kitchen home. The truth. This was done in 2011, by 2015 it was a pigsty. The cheap kitchen was bugrd, the bathroom was rotten, etc etc.
Good luck finding work in Taupo. Your still better off buying than renting if you take the long term approach. How are you going to survive when you retire if your still paying rent ? answer you can't so like they say, your just going to have to keep working till you die.
First read below where rates are a rort. Personally I am not into pinching pennies, I tend to look at the bigger picture. Having spent money on my own house recently I know its not an insignificant thing to do. And how do you really improve a 1970s box? Perhaps use the spare cash and savings to put into a business? From the numbers of lanndlords looking to be ex landlords around here, and govt getting tougher on them by the day, after this rush of money into the provinces, will there be a turn the other way come the new year or will these low interest rates push the boom further..
That is crazy a house in Auckland worth almost twice that has almost half the rates.
The only advantage of renting I can think of is it makes you very mobile, probably good if your single with no kids and want to be flexible to move at short notice both around NZ or even the world if your job carries you in that direction. Probably also good if your not a practical person who cannot even change a light bulb.
You should do you own research buddy, and come to your own conclusions.
For me? Wellington is another provincial North Island city. Owning a house there - for the long term - is a great idea.
Manage the debt.
But if ya wanna buy and sell - speculate - oh well good luck, you are less patient than me.
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