PHOTO: FILE
An Auckland apartment, initially set for auction with a mere $1 reserve, fetched a surprising $62,000 in yesterday’s sale.
Grant Elliott, the listing agent, disclosed to 1News that the bidding commenced at $1, escalated to $2, and then swiftly leaped to $5000.
The seller acquired this two-bedroom, two-storey property situated on Quay Street eighteen years ago, as per RayWhite.
A change in circumstances prompted a sudden auction, according to the listing, which emphasized the property’s leasehold nature and affordability, albeit requiring some refurbishment.
Although currently rented out for $630 per week, Elliott estimated that with a bit of refurbishment and painting, the rental appraisal could soar to $750-800 per week.
Explaining the surprisingly low sale price, Elliott pointed out that the apartment was situated on leasehold land, necessitating payment of ground-rent to the freehold landowner, which amounted to $17,344 per annum for this particular townhouse.
The sale, which occurred at auction yesterday, underscores the unique nature of leasehold property ownership, where the purchaser acquires the dwelling but not the underlying land, which remains freehold.
This distinctive arrangement involves the creation of a title leasing the land for a definite or indefinite period, with costs typically reviewed every seven years, as elucidated by Settled.
The auction date was set for March 14, with initial reports highlighting the perceived risk associated with an auction starting at a mere $1 reserve.
SOURCE: 1NEWS