A do-up lifestyle property in the Waikato with “fixable structural issues” is selling at auction with a reserve less than half the price of other properties for sale in the area.
The dated five-bedroom, two-bathroom homestead at 1268 State Highway 26, in Eureka, could sell for as low as $640,000 due to needing its foundations remediated and cosmetic work when it is auctioned tomorrow afternoon.
The property, which has an RV of $720,00, was first put on the market last year for $799,000 but was later pulled off after two conditional offers fell over for separate reasons.
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The first contract collapsed because of the buyers being unable to sell their current house in time, while the second buyers walked away after a detailed building report identified uneven foundations which they hadn’t budgeted for as part of the renovation.
The owner then decided to fund her own builder’s report and engineering report outlining options for remediating it, which has been provided to prospective buyers and has now committed to selling it at auction with an advertised reserve of $640,000.
The property would benefit from new carpet and paint. Photo / Supplied
The kitchen and bathrooms also need modernising. Photo / Supplied
It had been a lengthy process subdividing the property off from a larger section – and the original 1940s concrete home on a 2968sqm section was now surplus to her requirements – but now it was finally completed.
Lodge listing agent Simone Parkes said the $640,000 reserve was extremely realistic and factored in the work needed to bring the property up to scratch.
“It’s fixable – there’s fixes for it, but we also wanted it to be priced at a level where buyers were comfortable that there was going to be some fat left in there for it if they took it on,” she said.
“It was a beautiful grand old house once and I think it will be amazing once the right people buy it and do the work to it.”
The price is certainly cheaper than any of the other Eureka properties currently listed for sale on OneRoof, which are priced between $1.299 million and $1.45m with sections ranging from 7000sqm to 40,000sqm. A 1520sqm section on Eureka Road has an asking price of $675,000.
Parkes said while at $640,000 it was in the first-home buyer price bracket, it wasn’t a house for first-home buyers because it was unlikely banks would approve it given the level of work required.
The foundations require re-levelling. Photo / Supplied
“We’ve had so many people enquire about it and get excited about it and put in an offer who need finance and the bank takes one look at it and goes ‘yes well you’ve got the money to make the purchase but where are you going to get the money to do the remedial work required?’.”
Instead, she expected it to attract builders, experienced renovators or people with a background in engineering or access to this expertise who would do the work and reap the benefits.
“A lot of people want to have a house that they want to do up, but there’s varying levels of expertise that they are comfortable with. A lot of people are happy to slap a coat of paint on a wall, but some people wouldn’t even know where to start with structural side of things.
“It’s a great opportunity for someone who wants to do something like that, and I think the finished result is going to be beautiful and I can’t wait to see how it ends up.”
Parkes said Eureka, which is about 20 minutes from Hamilton CBD, was an “up and coming” area that offered more bang for your buck than other Waikato lifestyle areas.
“You just get more for your money in that area than you might in some other more established areas of Hamilton.”
The property was also zoned for sought-after Hamilton schools including Hillcrest High School and appealed to people who had holiday homes in the Coromandel due to being on the eastern side of the city.
- 1268 State Highway 26, Eureka, Waikato, goes to auction with a reserve of $640,000
