Orewa good time to buy?

[Damap]

I have an "in" on 2 units close to the beach at Orewa. Anybody living or investing there have any comments about that market right now. I am getting no joy on price but great terms on the purchase so can't decide what to do!!

[kmor110]

I have an "in" on 2 units close to the beach at Orewa. Anybody living or investing there have any comments about that market right now. I am getting no joy on price but great terms on the purchase so can't decide what to do!!

Hi Damap - are these the two red brick units on Florence Ave? Excuse my ignorance but what do you mean by terms of the purchase?

We own a standalone 2brm 75sqm close by. We bought for 380k mid 2013 and have spent about 60k on much needed renovations since. We have had a valuation, waiting on the final result but expecting 500k+. Rental valuations have been 430-450 p/week.

According to local agents I've spoken to, the market is a lot more active than a year ago**, but I do see a fair few units sitting on the market for a while. I think because the yields are quite poor (most people are asking high 400s to low 500s for 2brm units) these are not very popular. Whereas sub-divisible sites or new homes get a really good price.

Orewa is IMO a good area for steady capital growth. Good quality tenants generally (speaking to people who own rentals in the area) and capital gains over time. The trade off is low yields and high price to get in to the market. Quality greenfield development happening at Millwater including schools and commercial driving prices up in the area especially Orewa/Red Beach.

Depends what you are going for I guess! Let me know if you want any other info.

*these agents are trying to get me to list my house so take what they say about the market with a grain of salt!

[Damap]

Thanks Kmor. No not those units, it is 2 apartments over the road from the water but with sea views. It's sort of a rent both for now and eventually live in one of them sort of deal. Terms I mean I can take a fixed price option for 24 months on one unit and 12 months closing on the other with right to rent until settlement :-).
I just can't decide if the area is a bit overheated. These are 170sqm apartments but they will be close to 900K apiece.
If the other owner ever sells I would then have the whole site and that is a whole different ballgame then I guess.....

[kmor110]

Thanks Kmor. No not those units, it is 2 apartments over the road from the water but with sea views. It's sort of a rent both for now and eventually live in one of them sort of deal. Terms I mean I can take a fixed price option for 24 months on one unit and 12 months closing on the other with right to rent until settlement :-).
I just can't decide if the area is a bit overheated. These are 170sqm apartments but they will be close to 900K apiece.
If the other owner ever sells I would then have the whole site and that is a whole different ballgame then I guess.....

IMO the area will only go from strength to strength especially in light of the recent development nearby. I wouldn't bank on it turning in to 'the Gold Coast of NZ' as some have suggested but it is a beautiful location, relatively close to the city with good but improving infrastructure and services. I am talking long term here, I personally wouldn't bank on prices rising much further in the next 6 months, though there may be some upside in the seasonality of winter vs summer market in Orewa.

If you can afford to get in to a quality property (or 2) now, lock in today's price (assuming it's better than average) and pay tomorrow (figuratively speaking), AND it work's with your PI strategy, then it seems to be a good opportunity. The added potential to have the whole site is a nice touch but you can't bank on it of course!

Another thing to consider is the possibility your view is built out... be careful as many of those beachfront properties could be developed in to apartments eventually.

...Another thing to consider, if there is only one other owner in the complex - why not ask them if they will sell and try buy all 3 at once?

[Damap]

Cant be built out, SLSC is opposite. We have tried to get the other owner to sell but he said he will die there. He is very old so that isn't a long term problem necessarily :-).
However we have gone from "let's get somewhere cheap to retire to close to a beach" to "Let's find 2.7 mil and buy 3 beachside apartments as a development opportunity" :-)

[kmor110]

I think you have answered the question with your last sentence!

Orewa is the best, rent up here while you wait for the perfect property. I can recommend the northern end it's a bit quieter. Elizabeth St was the best street in Orewa when it was originally developed (according to Gladys, an octagenerian local) ��

[BigDreamer]

Orewa is a goldmine at the moment for resales. Problem is not good for rental return as still relatively low rents. I was heavily searching for 2 bedrooms in Orewa/Silverdale and the market is very active there. I would recommend you engage a real state agent to give you an appraisal and that should help you decide.

[Leftette]

Yields are dismal and prices won't rise a lot in the next 6-12 months. So why would you? Those 2 particular 2-bed one-level brick units are overpriced imo.

[kmor110]

Yields are dismal and prices won't rise a lot in the next 6-12 months. So why would you? Those 2 particular 2-bed one-level brick units are overpriced imo.

Hey Leftette, I did wonder how much they were after. Are they charging a premium for the 'land' as people seem to do with a matching pair of cross leased sites in Orewa. Have you seen that one in Pine Road?... 800s for a run down cottage and a converted garage on two sites.

[kmor110]

Unrelated, but can anyone tell me how to add an avatar? I can't figure it out :S

[Damap]

They're not single level leftette they are 2 floors of a 3 floor building. Thats why they have views....

[Damap]

I looked at 3 places on Pine Rd, they are all crazy expensive....

[Leftette]

I wasn't talking about your one, Damap, but another that was advertised recently. Is yours the recently-reclad apartment complex on the main road opposite the park? That had leaking issues I understand, but the reclad looks pretty good.