Auction results: Not much change from $500,000 for a house in Otara

Property

Prices at Harcourts' Auckland auctions ranged from $240,000 for a 1 brm unit in Mt Wellington to $3m for an Epsom pad, plus results from Hamilton, Christchurch, Wellington and Blenheim

13th Apr 16, 6:03am by Greg Ninness

There was only one house that sold for less than $500,000 at Harcourts' Auckland auctions last week (ended April 10), and that was a three bedroom house in Otara (pictured) that went for $480,000.

However you could also have picked up a one bedroom home unit in Mt Wellington that went for $240,000.

At the other end of the price scale a house in Epsom fetched $3 million and five others sold for more than $2 million.

By contrast all of the Hamilton homes that Harcourts sold at auction last week went for less than $500,000.

We also have the latest auction results from Harcourts' auction rooms in Wellington, Palmerston North, Kapiti, Christchurch and Blenheim.

See below for the full results:

Auction results for Harcourts Marlborough:

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37 Comments

by xelnaga | 13th Apr 16, 6:45am 1460486728

By my calculations that's an average of 99.935252525259239% above CV!

by Zachary Smith | 13th Apr 16, 7:19am 1460488780

Seriously or taking the mickey? LOL Who can tell these days?
I see the Otara house went for 37% above CV. This seems to be the low end at the moment for your classic Kiwi bungalow in what was once a less desirable area of Auckland.

You know what is really interesting about the Otara property? Go to earth view and you will see huge pylons. Is this the new investment opportunity? Have people lost their fear of pylons?

by head_down_bum_up | 13th Apr 16, 8:10am 1460491812

Beggars can't be choosers...

by Zachary Smith | 13th Apr 16, 7:09am 1460488183

Savvy investors could have seen this coming. From an article about Alberta, Canada:
...buyers flocked to detached houses in less expensive neighbourhoods, pushing up prices in the Northern and Eastern parts of the city.
Probably a bit late now. I think one bedroom places will be good buys, especially if you can find a nice brick and tile one.

by ObeseBallerina | 13th Apr 16, 7:20am 1460488808

I can't see Otara gentrifying. Too much state housing for that.

by Zachary Smith | 13th Apr 16, 7:27am 1460489248

Our evil plan is to gentrify the entire Auckland area.

by ObeseBallerina | 13th Apr 16, 7:31am 1460489490

I dont know why people hate the idea so much, its bandied around as a swear word. Personally I think its an awesome idea. Who doesnt want to live in a nice area?

by Clarence68 | 13th Apr 16, 7:51am 1460490675

I guess it's what happens to the folk that can't afford to stay in a gentrified house.

by Zachary Smith | 13th Apr 16, 7:56am 1460490981

In America there has been quite a bit of discussion about this. They claim gentrification is a form of Fascism, displacing ethnic minorities in the super-cities with hip housing, boutique pubs, organic shops and Apple stores using as their shock troops an army of hipsters. There have actually been protests against organic shops attempting to get started.

I have often wondered why people don't get together and gentrify a block or even just a street. Just ensuring there is no litter and all houses and their frontages and gardens look immaculate would do wonders for house values. Possibly setup really good community surveillance to make it crime free too. Hard to determine the effect on value in these crazy house price times but maybe later.

by ian64 | 13th Apr 16, 8:20am 1460492407

i usually dump some old furniture and mouldy matresses down the road where I live. i do it around the time when my rent is up for review, to keep the lanlord from increasing

by frazz | 13th Apr 16, 8:21am 1460492467

Oos yes and idea and while your it remove the homeless too such an eyesore. Prices need to go up forever http://abc7news.com/news/homeless-man-dies-after-police-shooting-in-sf/…

by doublegz | 16th Apr 16, 2:53pm 1460775181

by frazz | 13th Apr 16, 8:36am 1460493417

They live on the street dumbarse

by dictator | 13th Apr 16, 9:09am 1460495370

What he's saying is that a high earning pan handler could be in their place earning $800/day. The homeless are displacing high end beggars which makes the economy underperform.

by buzby | 13th Apr 16, 9:10am 1460495414

There is no way you are real Doublegz. You are a parody.

by doublegz | 16th Apr 16, 2:53pm 1460775193

by Zachary Smith | 13th Apr 16, 11:35am 1460504133

I can vouch for doublegz, he's real.

by ObeseBallerina | 13th Apr 16, 4:31pm 1460521862

They can go be unemployed and live in a State house anywhere thats dying in the regions. Why do they need to live in Auckland to do that?

by KH | 13th Apr 16, 4:37pm 1460522269

Gee Obese. Haven't you worked out many of the regions are thriving. Lots of people have come to Auckland to live as unemployed in those Zombi Suburbs you have.

by ObeseBallerina | 13th Apr 16, 7:51pm 1460533904

I bet they don't.

by sharetrader | 13th Apr 16, 7:53am 1460490787

why not 30 years ago grey lynn was the otara of Auckland, it was cheap now you need a mil to buy a letterbox

by doublegz | 16th Apr 16, 2:53pm 1460775206

by Zachary Smith | 13th Apr 16, 8:34pm 1460536452

It is a bit out of my league that place. Nice view from the pool - I often walk around the Orakei basin for exercise, trekking over from the One Tree Hill side of the motorway. There are a lot of walks around Central Auckland with the volcanic cones and coastal areas. If you walk around Central Auckland you soon realise how beautiful it is and that there are many nice places to live and not many for sale
That is quite a lot over CV for such an expensive house. Interesting that there was so much interest.
I'm going to try and make it to an auction tomorrow so will report on that.

by doublegz | 16th Apr 16, 2:53pm 1460775217

by Zachary Smith | 13th Apr 16, 8:57pm 1460537825

Yeah a lot of people seem to actually be paid handsomely for the privilege of living in Auckland. That's a sentence that will wind many up but it's just a fact, an observation. The wonder is that so many didn't notice it a lot earlier and take advantage of it.

by doublegz | 16th Apr 16, 3:21pm 1460776910

by Zachary Smith | 13th Apr 16, 9:24pm 1460539465

I remember those days and actually having some sleepless nights as a 25% drop in house prices would have wiped out all my capital. Luckily I didn't panic too much although I did sell one property prematurely. People shouldn't advise others to not invest in property as they are more often wrong than right - better to say nothing.

by doublegz | 16th Apr 16, 2:53pm 1460775230

by Zachary Smith | 13th Apr 16, 9:36pm 1460540206

I'm gutted I 'lost' 300K selling that house too early!
Nah, not really at the time I thought I had made a killing, believe it or not I am happy for the new owner. I'd rather he made money than lost money by buying my house.

by doublegz | 16th Apr 16, 2:54pm 1460775241

by The best statu… | 13th Apr 16, 12:47pm 1460508421

I needed some more anchors to attach to the house last week so it would not take off.

by Boatman | 13th Apr 16, 1:31pm 1460511063

Bloody nuts ! we are talking a blue collar working area ........how can any blue-collar worker and his wife and even an extended family ever pay this kind of loot for a home .

Furthermore , the buyer , if he is an investor , needs to get some yield , at this price he gets almost zero yield in a low socio-economic area such as this

by Aspiring home owner | 13th Apr 16, 2:16pm 1460513781

What would this rent for though? $450 per week* - so $23400 per year (4.9% yield)? Interest on a $432k mortgage @ 5% = $21.6k. Doesn't seem that bad an investment or owner-occupier purchase provided interest rates stay low and houses keep appreciating. Could be terrible if either changes though!

Also wouldn't 4.9% represent a reasonably good yield in Auckland at the moment? My landlord is getting around a 2 - 2.5% yield on his property.

*Very uneducated guess - happy to be corrected.

by KH | 13th Apr 16, 4:42pm 1460522534

Clearly then at those numbers the business approach is looking for Capital gain Aspiring. It's being bought to sell so tax on the capital gain applies.
If you have ever claimed a tax deduction and had negative tax flow, you will be paying tax on your capital gain. Every single one, no dispute.

by Zachary Smith | 13th Apr 16, 8:09pm 1460534994

A FHB may have put down 100K deposit on the Otara home and is now paying around $300 a week in interest on the mortgage. This doesn't seem so bad especially when you consider that renting the place may cost $450 a week. That would mean the 100K deposit was saving them $150 a week which is almost 8% tax free return!
Buying is still better than renting.
An investor with 100K may be better off to buy this place and rent it out rather than keeping the money in the bank.

by ian64 | 14th Apr 16, 6:07am 1460570867

450 for a shack under a HV pylon in otara? take away rent subsidies now.

by Carlos67 | 13th Apr 16, 8:48pm 1460537287

Thats a cheap "P" lab in Otara ! LOL. Wow that cost more than my 4 bedroom place on the North Shore 10 years ago.