An abandoned two-bedroom flat in Auckland's Mount Albert sold this week for $425,000, after a fiercely fought auction.
The flat, the middle one in a block of seven 1960s units on Rawalpindi Street, a block from Carrington Road, has a CV of $620,000.
However, the City Sales agent, Lucy Piatov, who marketed the property wasn’t exaggerating when she said in her advertisement “you’ll need more than a paint brush”. The flat was completely rundown, with mould ingrained on the walls and floor, waist-high weeds and a falling-down fence in the backyard, awful carpet and a tired bathroom/laundry room.
The listing said the current owner had a change of circumstances and “abandons ship”.
Start your property search
Scott Dunn, sales manager of City Sales, which auctioned the property today, said: “We consider it ‘unliveable’ in its current state,” but added there was a lot of interest in the property, with 14 bidders placing 42 bids in the seven-minute auction.
“That’s a screamingly good deal in a desirable suburb.”
Read more:
- Downturn over? Auckland house prices rise in March as buyers go hard for $2m-plus homes
- ‘Can I really afford it?’: Fears for mortgage holders as cash rate jumps to 5.25%
- Remuera’s ‘best buy’ sells for second time in six months - but vendors take a $82K hit
Auctioneer Ted Ingram opened the bidding by saying “you can smell the money to be made here” and the crowd of mostly investors agreed, swiftly running up bids in lots of $10,000 and $5000.
Dunn said that buyers returning with their builders to look at the flat had estimates for renovations, including re-wiring, new kitchens and bathrooms, landscaping and fencing, as high as $170,000.
The two-bedroom flat on Rawalpindi Street in a block of seven had been abandoned by its owner. Records show it sold 20 years ago for $180,000. Photo / Supplied
Viewers estimated it would take up to $170,000 to renovate the flat to health homes standards for renting out. Photo / Supplied
“If you wanted to get it to healthy homes standards to rent it’s more, there’s insulation, heating, ventilation. But you’d be looking at $500 to $600 per week rental when it’s done,” he said.
Piatov said the concrete block flat had potential to become a smart rental property. Sited at the end of a cul de sac, it has two bedrooms, an off-street carpark and its own backyard.
Rawalpindi Street is a block from Carrington Road, handy to Unitec’s Mount Albert campus, cafes, the train station and motorway access. The street of former state houses is rapidly transforming into a well-designed high-density housing neighbourhood with new developments including a Kainga Ora block of 12 two-bedroom and 12 three-bedroom walk-up apartments. Another block recently on the market is looking for buyers with over $700,000 for a brand-new two-bedroom apartment.
The flat included an over-run back yard with collapsing fences. Photo / Supplied
The main living room, which opens to the backyard. Photo / Supplied
OneRoof figures show the rundown flat last sold 20 years ago for $180,000. The most recent sale in the block was in September 2018 for $635,000.
In other auctions at City Sales this week, two three-bedroom investment apartments on Whitaker Place in the city fetched $142,000 and $143,000. The freehold pair in The Empire block are under management lease to Auckland University student accommodation providers, and buyers could not see inside the apartment before bidding.
Last month a studio in the same block made headlines when it sold, sight unseen, for $51,000.
- Click here for more properties for sale in Mount Albert
