A large rental property in the heart of the capital city heads to auction later this month, but buyers will have to imagine what it looks like inside.
The listing for 1 Sheridan Terrace, in Johnsonville, makes clear the house has been split into three two-bedroom units. But the interiors are a mystery as the listing only has photos of the exterior.
The agents tasked with selling the property make clear that viewings are by appointment only: “All viewings are strictly by appointment only. Please DO NOT visit the property without an agent.”
Bayleys Wellington general manager Grant Henderson told OneRoof the agency had been appointed by solicitors to sell the property on behalf of the bank after several earlier attempts to sell proved unsuccessful.
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OneRoof records show 1 Sheridan Terrace was bought in 2016 for $890,000 and has a 2021 RV of $1.89 million. The listing said this was an “opportunity for potential development, to renovate the existing dwelling, to explore the potential income”.
Henderson said the property had “wide appeal” and could suit investors, developers, flippers or even extended families.
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Previous listings had marketed the property along with drawings of a 12-house development on it.
“It’s just going to be a great opportunity for someone to renovate, explore the development opportunity and get stuck into it,” Henderson told OneRoof.
“It’s not common at all – to find half an acre in Johnsonville. It’s elevated with sun, it’s not far to walk to the supermarket and things. It’s down a hill, but it’s not far to get to.”
Henderson said the property was currently tenanted but was expected to be vacated by settlement.
He said there had been a lift in mortgagee sales compared to last year, but they weren't as high as many had anticipated.
“At the moment our mortgagee sales are not doing what they thought they would do. I think the banks are looking to assist as much as they possibly can and that seems to be the narrative that we are getting from the banks that they are really willing to help people through the situation.”
Only exterior photos are shown on the listing. The agents say the property is currently tenanted. Photo / Supplied
During earlier attempts to sell the property, the listing carried an artist's impression of a proposed townhouse development on the site. Photo / Supplied
But there were still some circumstances when a mortgagee sale was the only option, he said. “The banks’ moves on interest rates have certainly helped the mums and dads out there, but possibly not the developers.
“We will see some more mortgagee sales, but I think we maybe over the worst in that respect.”
Henderson said about 75% of the time buyers could get inside mortgagee properties, but when they couldn’t, like 1 Sheridan Terrace, it was at the purchaser’s own risk. “You just don’t want to know what you end up with when you purchase it.”
However, he said it was unusual for the owner to strip everything out of the house after it had sold. “Other mortgagee sales we’ve had, from the time we’ve inspected the property to the end of the sale there’s usually no further damage done.”
The buyer pool was smaller for mortgagee auctions, he said, because the purchaser had to pay in cash or have lots of equity, as well as the ability to insure the property.
“You’ve got to have some really good property knowledge to secure a mortgagee auction so a first-home buyer is not going to go and do it, but you will definitely have property flippers, developers, builders – people who have property knowledge and understand how you can move within some of the parameters that are required to be successful in the game. It’s not an easy game to play.”
- 1 Sheridan Terrace, in Johnsonville, Wellington, goes to auction on October 24
