$1 reserve for red-stickered beachfront property
Auction for home destroyed by landslip
Abeachfront property destroyed by a large landslide earlier this year is to be auctioned with a $1 reserve. The home at 312 Thames Coast Rd, in Thornton Bay, was one of the highest-profile casualties of the extreme weather that struck the Coromandel over Auckland Anniversary weekend. The storm caused a slip above the property that knocked the house off its foundations.
Homeowner Dennis Raines, 95, had been sleeping inside and had not heard the slip or the house creaking from the pressure. He was whisked to safety after a local handyman came by to check on him.
Raines’ home of 27 years was redstickered and is uninhabitable.
His son, Clive, told Oneroof: “At 95 he cannot handle the stress involved to rebuild and could not afford to rebuild.”
The insurance payout he received was not enough to fund a rebuild so they had decided to sell the property “as is, where is” with a $1 reserve. Raines has already purchased a unit in Thames to live in.
Harcourts agent Steven Bridson said the property, which has a rateable land value of $560,000, would suit people looking for sections close to town while still enjoying the beach lifestyle.
The 809sq m section does not have any covenants so there are options for people who might want to park their campervans or relocate their tiny homes there, he said. There are two sheds at the front of the site that appear to be less affected by the slip.
Bridson said prospective purchasers should do their own due diligence, but all indications suggest the main dwelling needed to be removed or demolished and a retaining wall erected at the rear of the site.
However, he did not think the slip
earlier in the year would deter opportunist buyers.
“If they have the same line of thinking as me, I think not. I believe if people do their due diligence, they’ll understand the potential. The $1 reserve will attract bargain hunters and section buyers wanting a well-sought-after area.” Bridson said because it was being sold with a $1 reserve, the eventual
sale price was anyone’s guess. “It’s a bit like playing the lottery — you’ve got to be in it to win it. This is a perfect example of how the market decides the value in a fair and open auction setting.”
Last month a property directly next door to 312 Thames Coast Rd sold for $800,000 — $70,000 above RV. And a property slightly closer to town in Thames Coast Rd fetched $918,000. Both Thornton Bay sales happened after the weather events affected the roads and some properties at the start of the year.
Most of the $1 reserve auctions held so far this year have been in Auckland. A new two-bedroom townhouse in Mcleod Rd, in Te Atatu, Auckland, that was taken to auction with a reserve of $1 in August ended up selling for $660,000 after intense competition.
A fire-damaged home in Roscommon Rd, in Clendon Park, that had an advertised reserve of just $1 sold for $661,000 at the end of February.
The owners also couldn’t afford to rebuild so had decided to sell it as is instead.