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The price of a pimped up apartment given a quick flick increases by $150,000 in three months

Property
The price of a pimped up apartment given a quick flick increases by $150,000 in three months

Capital gain is the name of the game and there was plenty of capital being gained at this week's Ray White City Apartments auction in Auckland's CBD, with a 50 square metre unit increasing in price by $150,000 in three months.

According to QV.co.nz the two bedroom unit (pictured) in The Crescent apartment building on Eden Cres near the Auckland High Court, came with its own 10 square metre courtyard (pictured below) and had been purchased for $220,000 in April. Since then it had been refurbished and was also offered with a new furniture package.

The vendor may have been happy with the opening bid of $300,000, but there were several keen bidders and by the time they had finished it sold under the hammer for $370,000.

Several other apartments which had been owned for longer periods of time also showed impressive price gains, with one that had been purchased for $190,000 in September 2012 selling for $316,000.

There was competitive bidding on all five of the apartments offered at this week's auction with four selling under the hammer and one being passed in for sale by negotiation.

The full results are below:

  • 101/36 Eden Crescent. The Crescent building. A 50 square metre, fully furnished, two bedroom apartment with a 10 square metre courtyard (pictured below). Vacant. Sold for $370,000. Rates were $836 and the body corporate levy $4710. According to QV.co.nz the unit had been purchased for $220,000 in April this year. The agents were Krister Samuel and Mitch Agnew.
  • 1102/53 Cook St. The Aura building. A 49 square metre, two bedroom furnished apartment with harbour and city views. Rented at $470 a week. Passed in with a highest bid of $351,000. The agents were Daniel Horrobin and Damian Piggin.
  • 8H/34 Kingston St. The Altitude building. A 40 square metre, two bedroom, furnished apartment located just around the corner from Sky City. Sold for $316,000. Rates were $1113 and the body corporate levy $3574. According to QV.co.nz it had been purchased for $190,000 in 2012. The agent was Leo Zhu.
  • 602/152 Hobson St. Fiore building. A 47 square metre, one bedroom apartment with a car park, storage locker and balcony and just up the road from the City Mission. Vacant. Sold for $409,000. Rates were $1212 and the body corporate levy $2663. According to QV.co.nz it had been purchased in 2009 for $320,000. The agent was Aileen Wu.
  • 1318/10 Waterloo Quadrant. A 22 square metre, furnished studio under management contract to the Quadrant Hotel until July 2016. Sold for $280,000. According to QV.co.nz the unit had been purchased for $160,000 in 2006. The agents were May Ma and Mark Li.

Pictured below: the courtyard of the apartment that sold for $370,000.


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21 Comments

That courtyard would look stunning with a macrocarpa planted in the middle.

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Nice. That put a smile on my face.

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George Clarke's amazing spaces could house a family of 8 in there. No doubt Nick Smith has this on his list of buildable sections ...........

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drop a landscaped bonsai garden in there? options are endless..

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Do you think this could possibly be a way to launder money?
Mate 1: I'll buy this chilly-bin sized apt for 200k with REALLY dodgy money
Mate 2: ok I'll buy it off you for like 400k in a few months with money from our last deal (slightly less dodgy)

rinse and repeat?

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Headhunters?

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Jafanese?

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...you missed the bit where the 'tenants' pay their rent in cash each week. Turning the ill gotten cash into legit income. Tenants are either part of it or non existent...so the empty homes In Auck aren't actually empty....theyre laundromats...

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except, with a wide market you don't _actually_ have to do it with the _same_ house. You can use the same technique with different vehicles, agents, proxies, trusts, and companies to actually grow the game. Just introduce private or offshore debt of ...lets say..about $50k... on each trade.

Then all you need is patsies who have vested interest in the game, and no loyalty to NZ, and who have distrust of authorities and rather loose moral code so they have no reason to ask questions, do critical thinking, or rat you out to anyone. (someone in an insular community would be perfect - without your beneficence where would they go?)

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Clearly it is not a problem as no one does anything about it....
Must be students that are coming to NZ and changed their minds ... or .... first home buyers that have changed their minds... immigrants coming with cash ..buying and....changing their mind. Surely people buying/selling are not speculators...

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IRD where are you?

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The story only gets better yet! You can claim all the costs against your income to reduce your tax, and then take all the gains without any tax! Is there any other country in the world that offers such a great deal?

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please explain how you can take the gains without tax

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sell after 2 years

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higher prices -> higher CV -> higher rates -> council happy
higher prices -> higher CV -> higher insurance -> insurer happy
higher prices -> higher mortgage -> bank happy

it is clear who is the winner here!

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Well I pay double the rates that they are paying in Auckland, and somehow still paying for the roads in Auckland as well. Though I have to admit, they do have the best roads in NZ, which cheers me up as I bounce down the gravel road to drop the kids off at the bus stop.

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yes I know a lot of young people that were patting themselves on their back with how much their house had gone up until they got their rates then the smiles turned upside down

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Can't believe those Aucklanders bleating about a thousand or two extra on the rates bill when they're happy to pay a hundred thousand a year extra for their houses.

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house prices have zero impact on the total rates received by the council. House prices simply determine the portion of that falls on individual houses.

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if that were true why do my rates stablise when house prices drop, and have larger numbers when the prices are going up (ie QV and Rateable Values are rising)

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individual rates are affected by individual house prices. If your rates are going up more than average, then someone elses are going up by less than average (or even going down). The media makes allot of noise about the current auckland council rates increase for those whose properties have skyrocketed in value, but there is very little mention that 22.5% of households are seeing a rates decrease.

http://www.aucklandcouncil.govt.nz/EN/ratesbuildingproperty/ratesvaluat…
http://www.aucklandcouncil.govt.nz/EN/newseventsculture/OurAuckland/med…

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