An apartment purchased for $290,000 sells for $350,000 two months later

An Auckland apartment in a building located beside railway tracks has increased in price by $60,000 in two months.

According to QV.co.nz the two bedroom apartment at 6 Porters Ave in Eden Terrace was purchased for $290,000 on July 31.

Yesterday it sold at auction for $350,000, a 21% increase in two months.

The property was located in a block adjacent to the railway tracks and alongside a level crossing with barrier arms and warning bells a short distance from Mt Eden station, but that didn't seem to deter several prospective buyers bidding to own it.

However it also has much to recommend it because it was relatively spacious by modern standards with 75 square metres of floor space on two levels. It had two bedrooms, two bathrooms and a tandem car park (accommodating two cars if parked one in front of the other).

It's location in the CBD fringe suburb of Eden Terrace made for a short trip into the city and it was five minute's walk to the corner of Symonds St and Mt Eden Rd.

It had a 2011 council valuation of $245,000.

It was sold at what was a lively apartment auction conducted by Ray White City Apartments yesterday, with strong competition from buyers and all seven apartments that were on offer selling under the hammer.

A mix of apartments that would appeal to both owner occupiers and investors was offered and potential buyers for both types of properties were out in force.

There was good competition for the investment units and a notable feature was that two units were offered in the Zest building, which was one of Auckland's largest shoebox complexes, and both sold for substantial premiums above their original purchase prices. 

The full results are below:

1906/1 Courthouse Lane. The Metropolis building. A 44sq m, one bedroom apartment, fully furnished and fitted out. Sold for $326,000. Vacant but rent appraised at $450 a week, which would give a gross rental yield of 7.2%. Rates $1262. Body corporate levy $5092. According to QV.co.nz the property was originally purchased for $285,000 in 2005 and sold again for the same price in 2011.

2i/220 Victoria St. The Beaumont building. A 114sq m apartment with two bedrooms, two bathrooms and two car parks, overlooking Victoria Park. Sold for $800,000 compared with its council valuation of $475,000. A previous sales history was not available. Rates $1927 and body corporate levy $8327.

16/6 Porters Ave, Eden Terrace. A 75 sq m, two bedroom, two bathroom apartment on two levels with a tandem car park. This apartment was located adjacent to the railway tracks near Mt Eden station but that didn't deter potential buyers and it sold for $350,000. Rates $1185 and body corporate levy $2849. Vacant but rent appraised at $540 -$560 a week if rented furnished. According to QV.co.nz it was originally purchased for $257,000 in 2006 and resold for $290,000 in July this year.

315/72 Nelson St. The Zest building. A 23sq m, one bedroom shoebox. Sold for $150,000. Rates $765. Body corporate levy $1742. It was rented at $280 a week fixed until next March, which provided a gross rental yield of 9.7%. According to QV.co.nz the apartment was originally purchased for $126,000 in 2003 and resold for $94,000 in 2008. 

412/85 Wakefield St. Tetra House. A 39sq m one bedroom apartment with two bathrooms, managed as part of the Waldorf complex. Sold for $202,000. The management contract provided rental income of $1365 a month (including GST), providing a gross rental yield of 8.1%. Rates $1799. Body corporate levy $4166. According to QV.co.nz it was purchased for $251,000 in 2006.

615/72 Nelson St. The Zest building. A one bedroom 29sq m shoebox. Sold for $150,000. Rented at $270 per week providing a gross rental yield of 9.4%. Rates $878. Body corporate levy $1791. According to QV.co.nz it was originally purchased for $195,000 in 2007.

505/149 Nelson St. Ascent building. A 41sq m one bedroom apartment sold for $160,100. Rented on a periodic tenancy for $320 a week providing a gross rental yield of 10.4%. Rates $828. Body corporate levy $2337. According to QV.co.nz it was originally purchased for $101,000 2003 and resold for $102,000 in 2008.

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