Apartment to be auctioned with $1 reserve
A two-bedroom, two-level city apartment in Auckland’s Quay St is currently rented for $630 a week, which makes it an attractive investment for landlords. And the chance to purchase it for a song will likely make it even more so.
The apartment is being auctioned on March 14 with a $1 reserve. Listing agent Grant Elliott of Ray White Auckland Central says: “You could buy this twobedroom cash cow on your credit card.
“Leasehold and cheap? You bet,” he says in his listing. “A little tired? Not as tired as you might think.
“What's the catch? The bank won’t lend on it – you'll need a little bit of cash and the ability to read. Upside? It's perpetual passive income for virtually spare cash ... like ... forever.”
Elliott says the owner bought the corner apartment 18 years ago for $280,000, and wants a quick sale. “He has tried to sell it before, and now he’s getting on, he doesn’t want it to be left as an inheritance mess. He is tidying up his affairs.
“The most attractive way to sell is to put it up for auction. It was the vendor’s choice to sell it with one week’s notice, which puts the pressure on buyers.”
The risk of the apartment selling very cheaply is accepted. “If we only get one buyer that turns up on the day, it will be on the market even if the first bid is $1.”
Elliott says the current tenants have been in the apartment for quite some time, paying $630 a week. “You could get a lot more if it had a refresh. It still has a colour scheme from 20 years ago, and the blinds are falling apart.”
Being a corner apartment, there are side windows and plenty of sun. It comes with a car park.
The apartment is above a commercial block at 20A/8 Quay St, Auckland City, close to several fast food outlets, and opposite the container port.
The agent says another apartment in the block sold last year for $88,000.
The ground rent for the unit is $17,344 annually, and it has a Ngāti Whātua 150year lease.
Prices for leasehold apartments vary depending on a range of factors, including the length of lease remaining.