Almost 40% sold at Bayleys and Eves auctions in upper North Island

Property

Prices started at $615,000 at Bayleys' latest Auckland auctions, plus auction results from Waikato, Tauranga, Rotorua

30th Jul 18, 2:07pm by Greg Ninness

There was a 39% overall sales rate at the latest auctions held by Eves Real Estate in Tauranga and Bayleys in the upper North Island.

At Bayleys' upper North Island auctions, held in Auckland, Hamilton, Tauranga and Rotorua, 21 properties were marketed for auction and sales were achieved on 10 of them.

At the Auckland auctions, prices ranged from $615,000 for a two bedroom brick and tile unit with a basement garage in Howick, to $2.49 million for a four bedroom house with triple car garaging at Greenhithe on the upper harbour.

Eves real estate in Tauranga had 10 homes scheduled for auction last week and achieved sales on two of them, with the rest passed in for sale by negotiation, while Bayleys sold one of the three homes it auctioned in Tauranga last week.

Details of all of the properties offered at Bayleys' and Eves' latest auctions and the prices achieved on most of those that sold are available on our Residential Auction Results page.

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31 Comments

by Houses Overpriced | 30th Jul 18, 2:12pm 1532916762

wow, the results are astounding, setting a new low every week

by Tui12 | 30th Jul 18, 2:47pm 1532918868

Was back in town this week visiting my Brother and his family in Royal Oak. Saw a flyer from the local agent on the kitchen bench with a list of a dozen recent sales in the area. Only 2 of them were above CV, some close to and the majority well below.
Just think about that for a moment and imagine if you are a seller.

by HeavyG | 30th Jul 18, 2:59pm 1532919568

I'm imagining I am a seller that bought the property I am selling 10 years ago at 20% of the current CV....

So far so good?....

Still imagining....

by theglc | 30th Jul 18, 3:18pm 1532920730

True! its always the speculators that enter at the top that get the biggest hurt

by bw | 30th Jul 18, 4:06pm 1532923566

For those that followed the System, that property from 10 years ago has been leveraged up, perhaps several times during recent years and the portfolio is still at a ~80% debt level. That could likely be the downfall of some - holding on for 'the next bounce to get out' that doesn't come, or if it does, too late...It's the value of the whole that matters, not any part in isolation.

by HeavyG | 31st Jul 18, 4:01pm 1533009718

So every home owner either bought in the last 2 years at CV (according to Tui) or even if they bought earlier has borrowed up to 80% of CV on their home (according to you).

Where are you guys getting this info from?

Stuff reports housing stock was worth $1 trillion as at March 2018 and mortgages were $242 billion (24% debt level):

https://www.stuff.co.nz/business/102430579/new-zealand-housing-stock-wo…

If Stuff's figures are crap or part of a conspiracy theory please provide the source of yours.

by Nzdan | 30th Jul 18, 5:02pm 1532926971

We bought last year with a 25% deposit. As soon as we were handed the keys, we borrowed an additional 5% to bring us to 80% borrowed.

As our homes.co.nz estimate has creeped up, we have borrowed to keep in line with the 80% borrowed figure. I thought that was the whole idea of LVR's, you need to maintain a 20% equity buffer at all times.

by Nic Johnson | 30th Jul 18, 5:12pm 1532927546

Nzdan

You want to start paying off more than that mate, not borrowing more. When the beauty parade begins for re-financing the better rates will be offered to those with 40% or more in equity (the best rates will be for those that banks feel most comfortable about). And remember that the market is already shrinking equity.

Pay the bloody thing down please, the madness is ending.

by Nzdan | 30th Jul 18, 5:53pm 1532930020

It’s okay I was just having a laugh, nobody would be that stupid...... surely........?

by Pragmatist | 30th Jul 18, 7:37pm 1532936260

Oh, I dunno. Comments by some suggest otherwise.

by Retired-Poppy | 30th Jul 18, 7:57pm 1532937429

Nzdan, how do you think people can afford those 4x4 tractors, boats, and garages to fit it all? Of course heaps of people have done it. Many out there will now struggle to pay off a mortgage now that easy gains are gone burgers and will have to forego that holiday, car upgrade or even private schooling for the kids (even though they couldn't afford it in the first place). There's a lot less room to wriggle now the air is draining from this bubble. It's going to hurt going in reverse.

by Houses Overpriced | 30th Jul 18, 5:27pm 1532928429

wow, this says a lot about you

by HeavyG | 30th Jul 18, 5:46pm 1532929596

HeavyG turns to NZdan and says "that's great little man, run along now so the adults can talk", turns back to the conversation at hand..

by Nic Johnson | 30th Jul 18, 5:22pm 1532928122

HeavyG

Here's one of my comments from that article.. best Nic

'‘The combined stock of residential housing in New Zealand is now worth $941,611 billion, up from $667,718b in 2015’.......

Does anyone else look at this and appreciate how silly that statistic really is.... given NZ GDP growth over the period. Just because GV’s get Re-rated and someone counts all the houses in the country and assumes they can all sell for their GV - doesn’t make it true.. there have to be real buyers to be prepared to take the debt on..and you’d have to be a mug to want to do that now they’ve exposed to the market how silly it all is. I’ve just told my kids to stay at home with us for a few more years and save their money for a half price house!'

by HeavyG | 30th Jul 18, 6:39pm 1532932786

So what's your valuation of the housing stock? $242 billion in mortgages divided by 80% = $302 billion?... (Oh look, bw was right).

I hope you provided your kids a call option to buy a house at 50% of its 2018 value in "a few more years" (you need to be more specific really) otherwise you may have just screwed them.

I have bought houses for my children so they don't get stuck with high prices when they want a home (but then I am just bourgeois greedy c***).

by Retired-Poppy | 30th Jul 18, 4:24pm 1532924664

Tui12, many are indeed selling under CV. Those few with special appeal, above. Certainly imaging that of what's happening in Australia who are boasting auction clearance rates in the 50s!

by Rex Pat | 30th Jul 18, 6:19pm 1532931560

Royal Oak is in the Mount Roskill electorate, a Leftie stronghold. I’m not surprised if values are tanking there.

by Retired-Poppy | 30th Jul 18, 6:34pm 1532932444

Rex Pat, I suppose you'll next claim Tony Alexander is nesting in your electorate ;-) Fill your boots if there's still room.

by Rex Pat | 30th Jul 18, 8:03pm 1532937810

I haven’t seen him. I know Mark Richardson lives close by.

I have my eyes on a couple of properties for my children. I need to have zero income as at 1/4/19 to get WFF so that’s the ideal date to ditch the TDs.

Btw Core logic is still valuing at CV in 1071. A bit scary how often it’s revalued for the bank.

by Retired-Poppy | 30th Jul 18, 8:16pm 1532938567

Ha-ha-ha :) A deflection that's almost worth bottling! BTW, deliberate deprivation of assets and income will only serve you a debt to pay back! Enjoy.

by Rex Pat | 30th Jul 18, 8:38pm 1532939916

It’s called tax management not evasion. There is no evasion in minimising taxable income. If we lever the properties to have no taxable income then where is the debt to repay? We would buy with the goal of giving each child a home when we pass. We can’t do that with one home. WFF is the icing on the cake. Free money.

by Retired-Poppy | 31st Jul 18, 8:38am 1532983096

Rex Pat, I think you'd be better to stick to your original plan "A" put that extra room on the house - lol!

Sounds to me like your getting anxious about being left behind in a race to riches that doesn't exist. If by leveraging you mean paying out loads of dead money to accountants, bank, council, insurance and tradespeople to make income neutral? Besides, I suspect your kids will wind up tapping their fingers waiting for you to pop your clogs if they know what awaits them. Best some things are not discussed with kids. They are more likely to find the energy to make their own way in life, respect you as a parent rather than an ATM.

Subject to your comment not being a Troll in the first place, I'd suggest you check with IRD regards any income and asset deprivation clauses before you race ahead.

Do you have Kiwisaver?

by Rex Pat | 31st Jul 18, 8:43am 1532983396

Building costs are exhorbitant and an extra room puts the home out of balance. More property gives us a better outcome longer term and sorts out the real goal which is to leave this world with our children sorted with homes. Just need to decide on the timing and location.

by Retired-Poppy | 31st Jul 18, 8:51am 1532983872

Do you have Kiwisaver? Your comments a contradictory. If you have confidence in property then what's an extra bedroom on the house earning an tax free income from boarders plus enhancing the value of your home? Are you in the best house in the worst street or something? Choosing your time to construct matters too. Costs won't always be this exorbitant.

by Tui12 | 30th Jul 18, 4:01pm 1532923289

I dont really see what 10 years ago has to do with more recent times. What is says to me is that the market is correcting and almost everyone who bought in the last 2 years will have a revaluation that is under the watermark.

by HeavyG | 30th Jul 18, 4:11pm 1532923899

Now you telling me what I can imagine?....

Are you saying that everyone in NZ bought their homes in the last 2 years?....

by Nic Johnson | 30th Jul 18, 4:20pm 1532924417

HeavyG

Try again.

by Houses Overpriced | 30th Jul 18, 5:28pm 1532928516

the issue here is your 'imagination', not a reality

by HeavyG | 30th Jul 18, 6:13pm 1532931231

That's my reality. Been there, done that, have houses to prove it.

by Tui12 | 31st Jul 18, 10:57am 1532991441

"almost everyone who bought in the last 2 years will have a revaluation that is under the watermark."

Have another read HeavyG as comprehension and attention to detail doesn't seem to be a strong attribute of yours. What do you do for a living,? I hope you're not a lawyer.

by HeavyG | 31st Jul 18, 3:05pm 1533006312

This was your initial post:

"Was back in town this week visiting my Brother and his family in Royal Oak. Saw a flyer from the local agent on the kitchen bench with a list of a dozen recent sales in the area. Only 2 of them were above CV, some close to and the majority well below.
Just think about that for a moment and imagine if you are a seller."

Where do you premise your comment "imagine if you are a seller" to a seller "WHO BOUGHT IN THE LAST TWO YEARS".

That is why I asked a question "Are you saying that everyone in NZ bought their homes in the last 2 years?...." (Can you see the question mark in my comment? Do you know what it means? Are you tired of being wrong all the time?).

Also, try replying to comments so they stay in the original thread instead of starting a new thread every time you talk drivel.

I hope you are still at school because you clearly have a lot to learn!

Don't tell me you're a lawyer because I think you need to find a new job.