What does three quarters of a million dollars get you in Auckland's property market at the moment?
At Bayleys auctions last week it would have purchased a two bedroom home unit in Pakuranga, which sold for exactly $750,000.
It was fairly standard fare for this type of property, brick and tile with a single attached garage, open plan living inside and pleasant courtyard and garden area outside.
Not so long ago units such as this would have been a good option for first home buyers, but at $750,000 they would need $150,000 for a 20% deposit and the payments on a $600,000 mortgage would be $1513 a fortnight (at Westpac's Choices three year fixed rate of 5.19% over 30 years).
Rates on the unit were $2032 a year which means on an 80% mortgage the combined mortgage and rate payments would be $1591 a fortnight and that's before allowing for other property-related expenses such as insurance and maintenance.
Although there's very little talk about the possibility of rising mortgage interest rates at the moment, they will go up at some stage and if they increased to 7.19%, which would still not be high by historical standards, that would increase the mortgage payments to $1871 a fortnight and take mortgage and rates payments combined to $1948 a fortnight, which would likely put a property such as this beyond of reach of most young couples.
Other properties auctioned by Bayleys last week included a three bedroom brick and tile house on an 883 square metre section at Avondale which sold for $1.04 million, a two bedroom plus study house at Pt Chevalier that went for $1.15 million, a modern four bedroom house in Hamilton that went for $520,000, and an 80 hectare farm block at Tirau that sold for $4.35 million.
See below for the full results of Bayleys' auctions last week, with photos and details of all properties, including those that didn't sell:
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