Greed has a lot to answer for

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13 years 1 month ago #27083 by Stikkibeek
Scrolling through lifestyle block sales in TM, I came across this piece of land for sale which seemed interesting precisely because it appeared unkempt and yet the house appeared to have good sound structure. www.trademe.co.nz/property/lifestyle-pro...uction-153034592.htm
I did a further search in a $700,000-$2,000,000 but failed to find it elsewhere, so, curiosity aroused I decided to email the agent for some info. Now I know that land in this area is currently valued at $40,000 per acre but you could have heard a pin dropping when I read the agents reply which was :

Thanks very much for your enquiry. This property has stayed on the market since 2008, because the vendor is staying overseas all the time and expectation is very high like $7 million.

If you're still interested in this one or something else, please contact me for further information.

Thanks and regards,

Well after the initial laugh, I got to thinking, that all those land banking Asians, have really done the ordinary land loving people of NZ such a huge disservice. Apart from the unrealistic prices they paid purely for investment greed, and aside from the money that did come into the country, they are now sitting on land that is not producing, will never sell at that price in the current market, will remain derelict, and prevents good people who might make something of the land, from buying.
I have it on good authority that with the change to the super city, the stage 2 development plan for this land and other land in the Takanini area, will now sit, unsold unless the Asian land bankers take a loss, because land which they were sold as development assured, (in the next 3-4 years) has now been pushed out to 50 years.
So whose to blame here? The real estate agents pushing for big commissions, or the greedy land bankers after a quick dollar. It all comes back to greed. Plain and simple and has a lot to answer for.

Did you know, that what you thought I said, was not what I meant :S

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13 years 1 month ago #374149 by ame
Replied by ame on topic Greed has a lot to answer for

Stikkibeek;366561 wrote:
So whose to blame here? The real estate agents pushing for big commissions, or the greedy land bankers after a quick dollar.

Let's not forget that some of these land bankers are greedy Kiwis.

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13 years 1 month ago #374162 by DiDi
Replied by DiDi on topic Greed has a lot to answer for
stikkibeek - interesting topic! The thing I have not worked out is are they greedy landbankers or are they people spending $X in the country to get their children in here for a free education? or residency? or some other reason. I have not researched the topic so no offence intended but my instinct tells me it is all of the above? I stand to be corrected.

Before I sold my place, I was aware of an Asian woman who bought a local 10 acre block - a beautifully maintained block with a recently renovated house. Not my taste (the block and the house for reason such as sun) but about market price at sale. No problem with that for the seller BUT two years or is it three down the line and the property has been on the market again for at least 12 months, in this market, an inflated price. No one has lived on the property in all that time even though a local has kept the paddocks tidy with his sheep and someone comes in to clean the pool BUT it makes no sense! Why did they buy it in the first place?

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13 years 1 month ago #374167 by Stikkibeek
I happen to know that the property next door to the one featured above, sold for $2.8million probably about the time that this 18.6 acres sold. The other property had been owned by the same family for many years, so when such an outstanding offer came along, naturally they sold. But, in this case, the purchaser asked them to stay on an rent the property back. Now this is I think a win/win situation. The Asian owns that land and is probably in it for the long haul, the family who owned it, rent it back and can afford to with 2.8 mil in the bank generating income, and the owner has people renting who actually care for the land and the home.
The 18.6 acres is not really the best land soil wise. It has a hard pipe clay pan under it and is subject to getting pretty wet in the winter. It's initial value would be in its close proximity to Papakura. That double yellow line on the map, is a gazetted road, that will likely be opened up if ever the area becomes residential development, but until or unless the 50 year hold on futher land development is changed again, then according to my calculations, 18.6 acres x 40,000=$744000+ a conservative value for the house at $300000 makes the property worth $1,044,000 which is a long way short of the owners unrealistic expectation of $7,000,000, unless he wants to pay for that Clevedon end of the gazetted road going in, in which case he may be able to cut it up into 2 acre sections and develop it for residential living.

Did you know, that what you thought I said, was not what I meant :S

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13 years 1 month ago #374168 by Simkin
Stkkibeek - that's how property developers make their money. Buy for 1.1 million and resell - in small parcels - for 7 millions.

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13 years 1 month ago #374174 by Stikkibeek

Simkin;366584 wrote: Stkkibeek - that's how property developers make their money. Buy for 1.1 million and resell - in small parcels - for 7 millions.

Yes except he has that on the whole block! A few K away there is 25 acres for sale for $1,000,000

Did you know, that what you thought I said, was not what I meant :S

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13 years 1 month ago #374269 by DiDi
Replied by DiDi on topic Greed has a lot to answer for
Even more interesting is that the property - given the address - is impossible to find on a rates search of Auckland or Manukau ratings database.

I have a friend who was approached by an Asian person to sell his farm and he did, happy with the price, and now that property is basically Botony. How the hell do some people get the information about what is (without City plans) know that this is on the agenda so far out?

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13 years 1 month ago #374271 by Doug
Replied by Doug on topic Greed has a lot to answer for
My wife and I farm our 35 acres. Is there any way we can send it to Auckland please for resale there? We would not be wanting the $7 million thanks, $6.5 million would be acceptable ;-)

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13 years 1 month ago #374273 by blimeyvicki
Holy Moley, I cannot believe the asking price on that property!! I am also pretty familiar with that area and drive along that road frequently. I would think that the proximity to papakura township is it's only saving grace. I think you are being generous with your $300k for the house Stikkibeak. The value is almost always in the land and that house needs some serious updating! Only a rezoning would possibly justify that price, sounds like the owner has anticipated that change by around 50 years!!
Maybe that person has some reason that the house has to be on the market - some financial or legal obligation and has listed it at an outrageous price so nobody buys it. In our business when somebody asks us to quote on a job that we really don't want for one reason or another we give them what is call a "f**k off quote" (sorry ladies) and hope that it frightens the person away. Amazingly enough sometimes we win the work at that ridiculous price!! Maybe that person will sell their property. LOL.

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13 years 1 month ago #374274 by kiwi_jon

DiDi;366699 wrote: Even more interesting is that the property - given the address - is impossible to find on a rates search of Auckland or Manukau ratings database.

It's Rateble Capital Value is $2.4 million.

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13 years 1 month ago #374275 by Stikkibeek

DiDi;366699 wrote: Even more interesting is that the property - given the address - is impossible to find on a rates search of Auckland or Manukau ratings database.

I have a friend who was approached by an Asian person to sell his farm and he did, happy with the price, and now that property is basically Botany. How the hell do some people get the information about what is (without City plans) know that this is on the agenda so far out?

Didi, you'd have to look at Papakura rates. I think the rates would be in the vicinity of $4500 per annum, just based on another block I know in the same area, that is 15.5 acres.

I suppose the real estate agents who specialise in off shore transactions would have a fair idea of what councils are planning. They might have got caught on this one though with the Super city change, there have been deferred plans.
Not to say those plans could have gone ahead.
An elderly friend of mine had 25 acres and wanted to cut off 5 acres as a retirement block. (Had been offered this about 10 years earlier but not acted on it) and it was all surveyed and passed through Papakura district council, but then, the ARC blocked it, citing more pressure on water reticulation, sewerage, and rubbish collection. The stupid thing about that was, that there was already town water on the whole 25 acres, there was only a septic tank and there was rubbish collection, no bus services.
Changes in the status of the property would have been minuscule. In the end, he was allowed to take 2 acres, and the balance was sold and transferred to the dairy farmer next door, so that title could not be granted to the other 23 acres. Madness.

Did you know, that what you thought I said, was not what I meant :S

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13 years 1 month ago #374277 by Stikkibeek

kiwi_jon;366704 wrote: It's Rateble Capital Value is $2.4 million.

I wonder if that is assessed on the original sales price and the property next door selling at $2.8 million.

I see the entire super city is going to have a new QV done this year to pull all provinces into the same time frame instead of being scattered over a few years. It will be very interesting to see whether the rateable values go up or down given the current economic climate.

Did you know, that what you thought I said, was not what I meant :S

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13 years 1 month ago #374288 by DiDi
Replied by DiDi on topic Greed has a lot to answer for
Kiwi jon - how the dickens did you find that? I thought I was quite good with data searching but obviously not!

Stikkibeek - I suspect that for this year all will be kept quiet to allow the transition but having been told that the rates requirement is 14%, I am not looking to buy in the Auckland area into the future!

Given also that 70% of the new Super City is rural while the central area, the Rugby world cup, the fanciful dreams of the current Mayor and Government are all about Central Auckland, you have to wonder why they have forgotten about the rural input to GDP.

Convenient as the majority of the population are in the City (politically) but let's forget that the majority can't and won't access trains and buses let alone cycle to work. Why get a train to the airport when there are companies like Park and Fly that look after your car, shuttle you to and from the airport for $6 a day? For short term flyers like me, why would I want to access anything different? What world do these guys live in?

Don't even get me started on the rural fast broadband that will in reality deliver peak 0.5Mbps in 12 years time. Perhaps better than what you are getting now on dial up but what a crock we are being sold as the rural roll out. Who cares - it is the current spin without research that will convince the majority that this is a good thing - without the facts being explained in basic English.

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13 years 1 month ago #374323 by igor
Replied by igor on topic Greed has a lot to answer for
Welcome to the world rural Aucklanders. Now you have some idea what rural Dunedin ratepayers have lived with since the council amalgamations of the 90's. I've been told that, measured by land area, Dunedin City is the biggest single local authority in the world. The rural ratepayers there have been getting screwed by the city folks too, just like you all will be. I could go on at great length about this but I think it best not to in a friendly non-political forum.

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13 years 1 month ago #374401 by Stikkibeek
Well now the mystery on this property deepens. I drove past there today, not that you can see much of the house from the main road, but there appeared to be no roof on the house. I got the distinct impression that it is being demolished rather than having a new roof put on it, so maybe it is being cut up into residential slices.

Did you know, that what you thought I said, was not what I meant :S

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