A desperate owner is quitting his townhouse in Auckland's Parnell after a soul-destroying three rounds of remediation for leaks and floods.
The three-bedroom end of terrace house at 1 Cotesmore Way is now being advertised for sale with the headline “Sentenced to 6 months behind bars!”
The tired owner, who asked to be anonymous, said that despite trying to hang on, after the latest run around since the Auckland Anniversary Day floods at the end of January he’s had enough.
“The indeterminate nature of the repair timeframes has been very stressful. Completion dates have been revised and pushed out four times so the initial six to 10 weeks has become 26,” he told OneRoof. The final date for completion of repairs is still not firm.
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City Sales agent Ainsley Lewis is bringing the nearly-repaired property to auction on August 23. Sales manager Scott Dunn said that while the company has sold many units in the complex in the past, this is the first since the flooding.
“Our seller won't wait. He'd rather escape Auckland and go sailing in the sun,” the advertising for the property states.
The owner, who lived in the home, had a long-term tenant on the lower floor and ran a successful Airbnb business as well, until being forced out in early March to enable the flood repairs.
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“Living in vastly inferior temporary accommodation, periodic moves and insurers challenging every cost despite their legal obligations, has been soul destroying,” he said.
The owner said the loss of both his $330 rental per week from the tenant, plus some $300 to $400 a week from the short-term let has been financially crippling.
Battles with the insurance company have now “gone legal”, he said.
“Early on in the process the insurers were very obliging and matters were being dealt to quite promptly.
“Their position soon shifted, presumably as the full extent of claims became apparent.”
The owner found that initial undertakings by the insurers have been reversed, and because he also lived in the property he has been declined any loss of rental income cover – a sum now topping $20,000 since February he estimated.
The terrace house in Cotesmore Way, Parnell, has been vacant for over 26 weeks while owners wait for repairs to be completed. Photo / Supplied
Owners are paying around $800 a week for rates, body corporate and ground rent, with no rental income since January. Photo / Supplied
“I’ve lost count of the hours spent trying to move things along and get just compensation,” he said.
“I spent several full days early on, and now at least one hour a day sorting this out. I estimate I've lost a full month of work days to addressing the fallout from the floods, and that’s a big hit for someone who is self-employed.”
Dunn, of City Sales, said the leasehold terrace houses had leaky issues which were resolved in 2015 and a new certificate of completion was issued then.
“But during inspection of the flood damage, contractors discovered that the remedial works done to fix leaky issues were not done to standard and need correction. The properties now require what will be their third CCC, due over the coming weeks,” he said, adding that as the weeks went by the vendor could no longer wait.
The 41 three-level townhouses made headlines in March when residents were given only a week's notice to move out for flood repairs.
Auckland flooding at the start of the year, looking at Beach Road at the bottom of Parnell. Photo / Tom McCondach
The development, off The Strand at the bottom of Parnell, was extensively damaged in flooding with water up to knee height. To add insult to injury, the vacated homes were then looted and vandalised until the area was wrapped in barbed wire fencing and the complex staffed by 24/7 security guards.
“Many of the owners are stuck paying rates, body corporate levy and ground rent to the tune of approximately $800 per week with no rental income,” Dunn said. “They are haemorrhaging money and have been since the flooding. We understand some owners have stopped paying outgoings in protest, which will put the complex under financial strain.”
Dunn said the owner tried his best to wait until the complex is finished before selling, but constant delays and communication issues had him at breaking point.
“He needs the money urgently.”
Dunn said that selling the home “as is, where is” without CCC would likely attract only a limited pool of buyers.
The advertising suggests that the price will consider current condition and status, adding that the seller is going against recommendation and selling now for whatever he can get rather than waiting a few weeks.
“You'll need to be a cash buyer. But you won't need much of it. You might have to withstand a short period of time before you can inhabit or [rent] it out. But the dates for reoccupation are not far away!” the advertising says, pointing out that the rebuilt ground floor will be virtually new.
Dunn said: “The first phone calls in these situations are from people who already own properties in the complex, as they are familiar with the issues and the timing.”
Records show the owner paid $335,000 for the home five years ago, but Dunn said more recent sales last year, before the flooding, were more likely to be around $150,000.
“There’s only so much a person can handle,” he said.
- 1 Cotesmore Way, Parnell is for sale by auction on August 23
