- Holiday homes at Lake Rotomā are selling for under $500,000, much cheaper than nearby lakes.
- Many properties are on Māori land, with prices starting at $199,000 but with annual ground rent.
- Freehold properties are more expensive, but leasehold options offer affordable lake views and attract holidaymakers.
Bargain-hunters are being urged to check out a quiet lake in the Bay of Plenty where holiday homes are selling for less than half a million dollars.
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Agents told OneRoof Lake Rotomā is just as beautiful and much more affordable than its richer neighbours, Lake Tarawera and Lake Rotoiti, where waterfront properties easily command upwards of $2 million.
A large portion of properties at Lake Rotomā is on Māori lease land. These can sell for as little as $199,000 but ground rent can be between $6000 and $12,000 a year.
A new two-bedroom, two-bathroom section with lake views on a leasehold section has a price indication of mid-$600,000. Photo / Supplied
A two-bedroom, two-bathroom bach at 229 SH30, in Lake Rotomā, is priced at $400,000-plus. Photo / Supplied
There is a pocket of freehold and cross-lease properties near the lake, which is a hot spot for fishing and water sports and has a reputation for being one of the clearest non-glacial lakes in New Zealand.
Property Brokers agent Lisa Crowe said leasehold properties sometimes got an unfair rap and people had to see them for what they were, which was an affordable way of owning a property with amazing views of the lake.
Crowe said they tended to attract holidaymakers from Te Puke, Gisborne, Manawatū and even Wellington, who wanted a lake bach without paying millions.
“Yes, they are leasehold, but all these properties are around $300,000, $400,000 to $500,000, $600,000 but if they were freehold they would be $2m-plus. Because they are right opposite the lake, they’ve got the view.”
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Most of the properties in Lake Rotomā currently listed for sale on OneRoof are on Māori land and range in price from around $300,000 for leasehold to $750,000 for freehold.
The cheapest lakeside property on OneRoof is a two-bedroom bach on 809sqm of leasehold land, at 567 State Highway 30. The agent, Judy Thompson, has it priced at $199,000.
At the upper end of the leasehold market, Crowe is selling a new two-bedroom, two-bathroom home at 75 State Highway 30 with a price indication of mid-$600,000s and another at 229 State Highway 30 inviting buyer enquiry over $400,000.
Crowe said leasehold properties did take longer to sell than freehold ones, “but what you get is bang for your money”.
A two-bedroom bach on a cross-lease section at 115 SH30, in Lake Rotomā, is inviting buyer enquiry over $580,000. Photo / Supplied
Arizto salesperson Cheryl Butler said the freehold properties at the lake, such as the $659,000 bach at 18 Oxford Road, were more popular, but usually a short walk to the lake.
There is also a handful of cross-lease properties past the petrol station on SH30, including a two-bedroom, one-bathroom home at 115 SH30 inviting buyer enquiries over $580,000 with an “amazing view”.
Butler said the advantage of the leasehold properties was that they all tended to have lake views and were across the road from the bach.
“It’s hard to get a view that’s not leasehold. And to be honest, I don’t see the point of being out on that lake if you haven’t got a view,” she said.
“Even though the lake’s right there, you will be surprised that every house has a different view. It’s a beautiful place to live.”
The Oxford Road area is the only part of Lake Rotomā where there are freehold sections. Photo / Supplied
A cabin on a 2003sqm freehold section at 37 Oxford Road, in Lake Rotomā, has a price indication in the $400,000s range. Photo / Supplied
The same leasehold lakefront properties on freehold sections would be worth millions, she said.
Those buying leasehold properties at the lake tended to pay for them outright because bank finance was more difficult to obtain for leasehold.
Often people bought them as their holiday homes and after a few years moved into them permanently.
Bayleys agent Sabina Andresen told OneRoof she had a 2003sqm freehold property for sale at 37 Oxford Street just two minutes from the lake.
The property currently has a basic pod on it, but has potential to be subdivided or for someone to build their dream home on it.
“They [current owners] were quite happy to use it as a little crash-out pad. Everybody brings a tent or a caravan or whatever and that’s it,” she said.
The owners purchased it in 2020 for $220,000, according to OneRoof records, and were now selling it due to a change of circumstances. The property is being sold by tender and has a price indication in the $400,000s range.
“It’s probably the most affordable option if you want to be around the lakes.”
Andresen said the only reason she could think of why Lake Rotomā was more affordable than the other Rotorua lakes was that it was 20 minutes further out from Rotorua. “That has to be the reason. What else could it be?”
She added: “I think it’s just as gorgeous. We used to waterski a lot and we would always go to Lake Rotomā.” It also had amenities like the other lakes including a petrol station, takeaway shop and a boat ramp.
- Click here to find more properties for sale in Lake Rotomā
