The owner of a three-bedroom rental property in Palmerston North is taking a gamble today, when his investment property goes to auction with a $1 reserve.
James Faber told The Hits’ Breakfast with Jono and Ben this morning that he was feeling nervous ahead of the auction of 67 Clyde Crescent, in Roslyn, but he was determined to sell – even for the declared reserve – to offload the property.
The 1950s-build ex-state house has a 2021 RV of $570,000, is Healthy Homes compliant and is currently tenanted. According to OneRoof records, the property transacted in 2017 for just over $300,000.
The house is listed with Property Brokers agent Pollie Ensing and her marketing makes clear the property "will sell on auction day".
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"No tricks or fish hooks on this, my vendor simply has to sell. This 1950s ex-state home is solid as a rock."
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Faber admitted that going for a rock-bottom reserve was “a bit crazy”, but he was having to take action because he had run into problems with another property he owned in the city. “I had a hard time selling another property. I didn't want to put up with all of that stuff again. So this one, I just wanted it sold.”
Jono said he thought it was a “bloody huge gamble”. The home, which sits on a 393sqm section, will be auctioned today at 1pm. “Anything over $1 is what it’s going to sell for”, the “tired and stressed” Faber told the Breakfast show.
The home, says Faber, has a “heat pump and a wood burner and all the insulation, and an extraction fan. There’s a great tenant there at the moment paying 500 bucks a week.”
Faber admitted he wanted a bit more than $1 for the house. “The agent appraised it at $480,000 at the start when I was listing it with her and I agreed and said that ‘yeah, that’s about what I thought in this market’. I had been just hoping to achieve somewhere in the early fours, you know, below market value, but there's not a single first-home buyer interested in this property.”
Faber said earlier this month that he was selling up because he had to repay a $300,000 loan to his mother.
“I bought this other development project a year and a half ago, and expected to have the old house sold and at least one new-build sold by then to pay mum back, but as you can expect everything has dragged on and dragged on,” he said.
The sale of 67 Clyde Crescent, in Roslyn, follows several others that have set their reserve at $1. Last month, a South Auckland townhouse sold under the hammer for $641,200 after being advertised with a $1 reserve and in December a problematic box-style cottage on Auckland’s North Shore sold for almost half a million dollars.
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