It's not often you get a 100% sales rate at an auction these days but it was a clean sweep at Ray White City Apartments' Auckland auction this week.
Four units were on offer with three of them being bigger units that could have appealed equally to owner-occupiers or investors.
The larger units were a character (66 square metre) one bedroom loft apartment with a balcony on the funky side of town in Lorne Street in the CBD, a two bedroom, 65 square metre apartment with a balcony and three car parks in Mt Albert, and a 53 square metre, one bedroom apartment overlooking Myers Park in the CBD.
The compact unit was a 40 square metre, two bedroom unit in the Altitude building opposite the Sky Tower on Victoria Street.
Three of the units attracted multiple bids, with some of the bidding being quite spirited, while there was just one bidder for the fourth property but he increased his bid several times and by the end of the auction all four units had been sold under the hammer.
At Barfoot & Thompson's regular apartment auction just one unit was on offer, a 49 square metre, two bedroom unit in the Aura building on Cook Street in the CBD.
Although the property had been advertised as requiring an urgent sale, it was passed in for sale by negotiation.
Details of all the properties offered at both auctions and the prices achieved on those that sold are available on our Residential Auction Results page.
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91 Comments
Sorry to disappoint, Mrs The Point, but I don't have any "pearls of wisdom" to offer you today. (You ought to avoid becoming too reliant upon my advice anyway.)
My only comment is to reiterate what's obvious: auction clearance rates in Auckland have been consistently higher over the past few weeks.
Despite it being mid-winter and a relatively flat housing market, there's buyer confidence in Auckland.
Mrs The Point - I trust that's enough to keep you happy. Perhaps you'll celebrate by buying yourself a new frock and matching pair of high heels - in the latest winter pastel tones......
Enjoy the weekend everyone!
TTP
http://www.abc.net.au/7.30/interest-only-home-loans-under-scrutiny/9540…
Hi TTP
CN found this and I hope doesn't mind me cribbing it. I couldn't help but wonder if the lady in the story was an Australian relative of yours? Loved her filing system.
Banking crisis anyone?
Definitely the mortgage broker. If the mortgage broker (the individual, not the company) was jailed for lengthy period (say more than 2 years), then this would make other individual mortgage brokers think twice before committing loan application fraud. Definitely need a stick as a disincentive for fraudulent behaviour. When there is a carrot (large commission payment) for the mortgage broker employee, there is every incentive to get the loan through. Without the stick, there is no repercussions for the illegal behaviour.
Also the mortgage broker company should be heavily fined, so that the owners and managers will not accept the culture of loan application fraud by any employee and have procedures to terminate employees that behave in an illegal manner.
Indeed, this kind of thing makes my blood boil. 11 investment properties! At what point on a nurse's salary does that seem a little bit stretched? All in the name of greed, when it was swimming and leveraging equity was always winning she was no doubt the greatest investor this side of Warren Buffet, and now suddenly it's the nasty banks that did it, no, you did it, you applied for mortgages on 11 properties that you could never afford, so tough, now pay up.
I wonder if this is why all our nurses are looking for a pay rise? They all went to an NZPIF seminar, got a bit excited by Tony Alexander's enthusiasm and are now in a mortgage mess.
Bit more Tony required I think...talk it up TA.
Also building a buy and hold property investment portfolio is being sold by many as a panacea for those looking to fund their retirement, and those who have insufficient savings for retirement.
1) That is fine in the beginning of the property price cycle when properties have sufficient yields to have positive cashflow and be positively geared.
2) Then this attracts a number of new property investors (and lenders who have financed them) who drive up property prices. It also attracts property traders who buy, renovate and resell for profit. It also attracts capital gain oriented investors. Some residential property investors become residential property developers by adding new dwellings to their properties with vacant land (typically a house on a large section).
3) The higher property price allows aggressive property investors to revalue their property portfolios and then borrow more money to maximum allowable LVR's (aka recycle equity / equity release) to use as a deposit on the next investment property purchase, typically financing with interest only loans.
4) repeat steps (2) & (3) above a number of times, until conditions in step (5) are apparent. Note that interest rate declines since 2006 / 2007 has allowed steps (2) & (3) to go on a lot longer.
5) Property prices continue to rise to the point where properties financed on maximum leverage and interest only loans become negatively geared and have negative cashflow.
6) Capital gain oriented investors with high income levels continue to purchase investment properties even though they are negative cash flow. Property traders continue to buy properties to renovate, and resell for profit.
7) Meanwhile as property prices rise rapidly, owner occupiers and first home buyers have a fear of missing out and feel compelled to buy or they will miss out.
8) Those cashflow oriented property investors unwilling to buy at negative cashflows then buy in areas with higher rental yields which allow properties to be positive cashflow - this has likely driven up property prices in former high yielding locations - for Auckland property investors, first the move was to Hamilton, then other areas further abroad - more recently it has been Hawkes Bay, Kawerau. Kawerau has been one of the locations with a low price point for property investors - since 2014 the average property price have risen 95% - now imagine the impact on that with leverage. For property investors with 62,000 of available capital to put down as a deposit, they can still buy in the Wairoa district (lowest price point) with current 65% LVR's.
9) In their search for returns, and as LVR'S on residential property become the same as commercial property, some residential property investors start venturing into commercial property investments. Increased investor demand for commercial property drives up prices, particularly for those at lower price points.
10) Then something unexpected causes the music to stop ...
Great. It shows what the media trying to potray and influence.
Headline could be 100% Sale in Ray White auction AND 100% Failure in Barfoot Auction OR to be fair 80% sale in Aparment auctions in city (4 sold out of 5).
"Is the glass half full or half empety" a common expression, a proverbial pharase used to reflect optimism or pessismism or as a general litimus test to simply determine an individuals world view.
Mate, you say the same comment every time. Do you know that locals also need houses and need somewhere to live. Have your attended any of these auctions. I have and I can tell you that they were NZ residents. Unless of apply the Labour party test, some of them didn't look Kiwi (i.e. white). They must be foreign buyers like 50% of Auckland.
Do you qualify for kiwibuild, just about anyone can. Why don't you get the govt to help you out. I think those Kiwibuild are definitely "Houses Overpriced".
Anyway gotta go to my "white" colour job now. Have a great day abusing anyone who doesn't share your view on this site.
lol, you're really a specimen aren't you..
you are so scared that the kiwibuild is going to ruin your life, that you are becoming a crotchety old woman.. take it easy, no matter how much you try to hit out, it will just come back to bite you..
now go on, and upskill yourself...
Wow Cheesemaster, why are you so hung up on race? I presume you mean "white collar job", no need to bring race into your job description. Also I believe Labour based their foreign buyer comments around surnames, not skin colour. Considering over 20% of the Chinese population is named Wang, Li, or Zhang it is not such a preposterous way of looking at a pretty poor data set.
It's mine and HO joke about "white colour" instead of "white collar" jobs. I hope he sees the funny side of it. Most comments here are not serious anyway and like an ahole everyone has an opinion. Some people get seriously offended but I come here for a laugh. No where else is such a pessimistic view of the world offered. Haha
Hi Houses Overpriced,
Chessmaster and DGZ are absolutely correct.
There's no indication that foreign buyers are particularly active in the market right now.
But those buying in the present market have adopted a counter-cyclical strategy - buying when the market is relatively flat.
They'll reap a benefit not immediately, nor in the shorter-term - but when the next upswing comes. (The great majority of buyers are NZers - who are well familiar with the market.)
TTP
With asking prices plummeting it will be interesting to see if those who think they are buying and getting a good discount at the moment feel the same way in a few month time.
I'm guessing today's discounts will be considered over inflated in hindsight.
Still predicting a 20-25% price drops from peak in Auckland
Of course whats happening in SYD right now will never happen in holy AKL
https://www.businessinsider.com.au/sydney-house-prices-downturn-apra-ho…
A number of my friends who moved to Aust 5 years + ago, are on their way back to Auckland. Their kids can't get University education without paying huge fees. I get a feeling the Australians don't like us Kiwis. Guess they'll be buying homes too, right. Thoughts or abusive responses ??
Because they doubled in the last 11 years so just extrapolate that data forward. Easy as man.
Wages will go up at 2% P.A. and house prices will go up at 8% P.A. In 20 years time, the average wage will be $116k (up from $80k) and the average house price would be $3.97 million up from $920k. House price multiple of 34.
Anyone with a spreadsheet knows housing is a 1 way bet.
Based on current trends (2% wage inflation and 8% house price), in 30 years from now the average salary in Auckland will be a whopping $145k and the average house price will be a mere $9.2 million.
A person on the average salary will need to save $1.8 Million for a 20% deposit on an average house or 13 years salary. That leaves them with a $7.4 million mortgage, by then we will have 1% interest rates and 60 year loan terms so the weekly mortgage payments will be $3154 out of the $2000 per week they take home.
The problem is, in 13 years time when the person finally saves up that $1.8 million for a deposit the average house price is now $25 million and salary is $190k. The banks go "yeah okay you have a good savings history 7% equity is fine", so they lend them $23 million at 1% over 60 years. Mortgage payments are now $9804 per week out of their $2600 take home pay.
Auction on-site at 3pm tomorrow. DGZ. Let me know if you're attending. Otherwise I'll keep you posted with the selling price. https://rwremuera.co.nz/auckland/remuera/12-brookland-place-18724521/
Update - this house has been SOLD under the hammer at this afternoon's onsite auction. The whole street was full with parked cars with people spilling out on the street during the auction. Happy vendor and happy buyer I hope ^^
https://rwremuera.co.nz/auckland/remuera/12-brookland-place-18724521/#s…
I had to attend to another location in a hurry after the auction. I am sorry I couldn't stick with my real time reporting for you all but a sale is a sale and there are quite a few bidding groups. Spare some thought for me going around my neck of the woods in the weekend to get a report for you readers ^^
Indeed, I saw the release of the white doves from my house! All the little children in their best clothes are walking home now, beaming with joy. The baby deer have peaked out from their cover at orakei basin, wanting to know if it met reserve, a bright star shines in the sky and three men (wise men?) are travelling to the auction house now with gifts of gold, myyhr and frankencense. The people of the neighbourhood have talked of little else!! Joy of joys!!
#sadpropertypornaddict
Bobster yes it is an addiction but it's better than smoking drugs or going out killing people. Here's a 2-bed apartment that was sold for $1,675,000 in another auction at 10am today. CV is $1,450,000 so it's 13.8% over the CV. I didn't attend this auction but found out later today. Ex Expat should be happy with this result in postcode 1071 ^^
https://nz.raywhite.com/auckland-city/st-heliers/1903805/
Please have a look at this and let me know which one you like.
https://www.youtube.com/watch?v=vOAecEIqQaA
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