A lifestyle property on the outskirts of Hamilton with an RV of almost $1 million is to be sold under the hammer next month with a reserve of just $1.
It’s the first time in more than a decade that a property in or surrounding Hamilton has been auctioned with a $1 reserve.
LJ Hooker managing director Aaron Davey said the out-of-town owners had been renting out the property at 160 Cemetery Road, in Whatawhata, and did not want to be landlords anymore.
“It’s a do-up, there’s a fair bit of wear and tear there and for all those reasons they just want to meet the market.”
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The property has a three-bedroom, one-bathroom home, an older shed that was historically a stables and tack room, and another garage with a sleepout that has a kitchenette, toilet and – perhaps bizarrely – even a chandelier dangling from the ceiling.
“The kitchen had been replaced a couple of years ago, but there’s still a lot more work to be done on the property.”
Photographs show the windowsills and skirtings in need of painting and, according to the listing, “a little bit of love will enhance the original features of the home” such as the native floorboards.
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Davey said the entry-level lifestyle property would suit someone good at DIY and who wanted to add value to the home or liked taking on projects and wanted a big shed to do it in.
The 8442sqm lifestyle section also meant there was plenty of room for stock while still just being 7.1kms from the Hamilton City boundary, the listing said.
It has an RV of $960,000 and, according to OneRoof property records, last changed hands for $700,000 in 2018.
Entry lifestyle properties in Whatawhata usually sell for just under $1m, Davey said. Last year a property on Te Pahu Road, in Whatawhata, on a 18,091sqm section sold for $650,000, while another on the same street with a 5033sqm section sold for $735,000, according to OneRoof-Valocity data.
However, Davey said the $1 reserve gave buyers confidence that it would definitely sell when the auction was held onsite on October 14.
“The benefit to the buyers is they know they are not going to waste their time with a vendor that is unrealistic and they know the property will be selling, they know that they can come along and give it their best shot, and bid to a level where they are comfortable – but needless to say it will be selling.”
A new kitchen was installed within the last few years. Photo / Supplied
A sleepout attached to the triple garage has a chandelier hanging from the ceiling. Photo / Supplied
The last and only time a property in Hamilton was sold with an advertised $1 reserve was in 2012 when Lodge real estate agent Trevor Palmer decided to auction off his three-bedroom, one-bathroom rental property on Rhode Street in Frankton at a no-reserve auction. The risky tactic paid off for Palmer who ended up selling it under the hammer for $232,000, which was within the estimated market value at the time.
Another $1 reserve auction is also being held for a beachfront property in Thornton Bay in the Coromandel next month after the house was destroyed by a slip earlier this year.
The elderly owner, Dennis Raines, was evacuated from the property at the end of January and doesn’t have the energy or money to rebuild so has moved into Thames and put the property on the market.
Harcourts salesperson Steven Bridson told OneRoof last week that he expected the auction to have bargain hunters who would be able to see the potential of buying a waterfront section in a sought-after area.
The $1 reserve auctions are more common in Auckland with several selling under the hammer this year. A new two-bedroom townhouse on McLeod Road, in Te Atatu, Auckland, that was taken to auction with a reserve of $1 in August ended up selling for $660,000 after intense competition.
A fire-damaged home on Roscommon Road, in Clendon Park, which had an advertised reserve of just $1 sold for $661,000 at the end of February. The owners also couldn’t afford to rebuild so had decided to sell it as is instead.
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