Investors are back and fighting over properties that offer dual dwellings – and dual incomes – on a single site. This was good news for three homeowners who pocketed tens of thousands of dollars more than expected at auction this week.
An older property on Rosebank Road, in Papatoetoe, which had a three-bedroom home and a second two-bedroom dwelling, sold for $1.432 million in a fierce auction at Ray White Manukau this week.
There were 17 investors and developers registered to bid on the property that needed some work which sold for $32,000 above RV after a total 43 fast bids.
Ray White listing agent Denise Wong said properties with two houses on them were a safe bet for investors and developers as they promised lucrative incomes while they were getting consents in place to develop the 1012sqm site.
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The new owner of the Rosebank Road property planned to continue to rent out the two properties in the short-term before eventually subdividing it, she said.
The vendors had owned the property for many years and were now in their 60s and wanted to retire. One of the tenants had lived in the home for 20 years.
“They decided to cash out and luckily investors and sub-dividers are actively back in the market and looking.”
Properties with two dwellings such as this one on Rosebank Road, in Papatoetoe, that sold for $1.432m offer better yields for investors. Photo / Supplied
Meanwhile, a large house with a granny flat at the end of a cul-de-sac on McDonald Road, in Papatoetoe, also saw seven developers fighting over the ready-to-go project in the same auction room.
The property sold for its RV of $1.45m, which Ray White listing agent Chatty Verma said was a good price seeing it was on the edge of Papatoetoe, and had made the owners very happy.
While the three-bedroom home and granny flat generated $1130 a week income, he said the main drawcard was the fact it had a resource consent in place for seven new homes.
“There was nothing on the market with resource consent, building consent and EPA (engineering plan approvals) ... They were like we are getting a complete project – the money is ready, the bank has given us the money – and we just want to go and start the project now.”
A home and granny flat on McDonald Road, in Papatoetoe, already had a resource consent for seven new homes and will be developed immediately. Photo / Supplied
Verma said the current owners had already committed to another project overseas so had decided to sell this one.
In Hamilton, the bidding got down to tiny $500 increments for two units on a corner site on Hibiscus Avenue near Hamilton Lake.
The auction opened at $900,000, it was announced on the market at $914,000 and the hotly contested property eventually sold for $978,000 after a total of 48 bids at Lodge’s auction room this week.
At one point Lodge auctioneer Jeremy O’Rourke commented that he didn’t even have to call the numbers as the investors standing side by side increased their bids by $1000 each.
“Second by second there were just one thousand dollar rises. It was a nice paced auction,” Lodge listing agent Chase Gray said.
The local investor who placed the first bid also placed the last bid.
Out of the six registered bidders, five were investors and one was a family buying it as a home and income.
“It went beyond what we expected, but you are getting two incomes of $500 to $550 a week. The property was marketed with the tagline ‘Two is better than one’.
“It was a corner site, centre of the city by the Hamilton Lake so the future development potential is there too. It’s a great land banking opportunity.”
An investor paid $978,000 for two properties on one site on Hibiscus Avenue, in Hamilton, which had a total rental appraisal of about $1000. Photo / Supplied
Gray said dual dwellings on one site that were in good areas and attracted good tenants usually drew a good amount of attention and Thursday’s auction showed there was demand for them.
“We’ve got people left over now searching for that kind of thing because you’re on one big freehold site, but you are getting two incomes off it and you’re not paying as much in rates.
“Yesterday was kind of the proof in the pudding that investors are back and having people come down from Auckland and bid and do their due diligence on those types of investment properties are really good signs.”
Meanwhile, a run-down duplex on Kingsway Avenue, in Frankton, also promising dual incomes from the two-bedroom and one-bedroom units failed to attract as much competition at the same Lodge auction with just one person bidding on it. The auction paused at $630,000 and after some negotiations outside the auction room sold for $635,000.
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