Bayleys Commercial Auction

[King13]

Hi

Wondering if anyone attended or has the results of the Bayleys Commercial Auction held on 2 April 08 and can post them here.

Cheers.

[Davo36]

Didn't attend sorry. I'd like to see the results too.

David

[PeterEmpowerEd]

Bayleys auction results 2 April 2008

Available here: http://www.EmpowerEducation.com/down...08_results.jpg (230k jpeg)

[Davo36]

Thanks Peter.

Interesting. 3 sold on the day, 1 prior, 2 post. 6 out of 18. Makes 33%. A bit different to the 90 odd percent they usually state.

Lots still avaialable and some with prices for a change. All in line with buyer demand dropping and vendor expectations still a bit high in my opinion.

David

The other thing I noted is that Dominic Ong is part of virtually every sale. They must be happy with him. I have bought at auction through him once. He's efficient and will say just about anything, (including doing a complete 180 on each point about a property once you have bought it) having said that I can't help liking him!

[Julian]

Davo

Dominic does seem to be bloody nice guy. I too have bought with him and was happy with the whole experience.

For a while I didn't even consider dealing with Bayleys because of a less than satisfactory relationship with another salesperson ...that is, until I realised that such an action (on my part) might be cutting off my nose to spite my face.

It's funny how a seemingly inconsequential rudeness can put you off dealing with a whole agency. It took me a long time to get over one agent's rudeness, although it was relatively minor. I'll tell you what it was: He didn't even interrupt his cell-phone conversation to say "Hello" when I got in his car, and it was a personal call he was having. I thought, "I'm a potential buyer going to possibly spend a few hundred grand and you can't even afford me the civility of a polite greeting." In that particular case I bought the building despite the agent. He got a commission, whereas if the world was a just place, he would have had an ice pick slammed between his temples - just to teach him some manners.

Don't knock it 'till you've tried it - it works - think about this: how many rude people do you see wandering around with an ice pick between their temples?

With Dominic the whole process was made easy - not that buying a building is particularly difficult. His greatest attribute was his communication. If he said he would call he called, and he did it when he said he would. Pretty much everything he said he would do, he did, and with a smile, and a follow up call just to keep you in the loop.

Communication - it's everything!

Apologies for veering off course.

Julian

[King13]

Bayleys Commercial Auction

Thanks, Peter for posting the results.

Any thoughts on why the Manukau retail units did not sell? Has anyone looked at them?

[Davo36]

Julian, I too get annoyed with rude salespeople.

I try to just tell myself that they're probably just as rude to other purchasers looking at the property and so figure they're probably putting most of them off and so may in fact be helping me to buy a property cheaper.

Sometimes it can be worthwhile dealing with an incompetent agent (more commonly found in the residential area) and helping them to sell you a property despite themselves! On 1 or 2 occasions I've had to rewrite agreements for sales staff, correct mistakes like incorrect legal descriptions, write some of the clauses and even calculate their commission for them (as a vendor) because they can't! I just try to focus on whether it's good for me or not.

I also get annoyed, but try to stay calm when I'm dealing with an unreasonable purchaser or more commonly over the last few years an unreasonable vendor. You know people who have a crap property, full of rubbish but want the earth for it. Lots of overdue maintenance, can't even be bothered tidying it up, bought it 2 years ago for 50% of what they're now asking and won't negotiate at all. They've let it run down but want to make a fortune out of it. Aaaaggghhh!

Times, they are a changin' tho.

David

[Glenn]

I know I have jumped threads but thought this thread might be more relevant.
I went off to my Bayleys auction in Blenheim for the strata title property yesterday.
It appeared I was the only person there actually interested in the building, and I was still a conditional buyer.
The market change from just three months ago is unbelievable.
Natually there were no bids for the property I was mildly interested in and none for the other one up for sale either.
At the last minute the vendor was offering to top up the rent by another $16000 per year for two years. Nothing like a keen vendor suddenly discovering that his wonderful investment is not worth as much as he dreamed it was.
With good desirable properties selling in Auckland for over 8% it would seem reasonable the same logic to spread out to the hinterlands of the country.
I wonder how long I will have to wait before I can buy cash positive again like 10 or 11%.

[Julian]

No one can predict the future. It is reasonable to expect yields will increase, but by how much and how soon is anyone's guess.

If you read Saturday's Herald you might note that yields seem to still be pretty low in the Waikato, which, if it's indicative of small town New Zealand, might mean any correction isn't going to be as big or as quick as some people might think.

It is easy to draw conclusions from one or two personal experiences, but it must be remembered that one swallow does not a summer make.

Not everyone is geared up to the max. Unemployment is still low. Dairy payouts are still big. Retiring baby boomer farmers still need a relatively safe place to put their money. It's not all doom and gloom just because a few lenders, who offered easy money to high-risk borrowers, went belly up.

Julian

[Glenn]

No one can predict the future. It is reasonable to expect yields will increase, but by how much and how soon is anyone's guess.

Too true but thinking aloud (like posting here) helps clear the mind
When I read what my fingers have just squirted out it can come as a surprise.
I do like your comment about Hamilton.
Small town NZ?
Everthing looks big when you come from a little city like mine.

I think that the fundamentals that everyone talks about will count for nothing. Hysteria and herd mentality is what makes markets roar not logic.
Everone can hear Auckland moaning and groaning at the gates.
Its gates are about to spring open and flood the rest of the country with its vial orgasims.

[Julian]

I take it you don't rate the Queen's city too highly. I too prefer smaller towns, and love Nelson - but there are times when Auckland seems pretty darned special as well, such as when we were hosting the America's Cup. We have just had one of the best summers in a long while, and that goes a long way towards compensating for our traffic woes. People are still in swimming - and that's pretty rare for April.

Agree that illogical sentiment can play a significant part in market behaviour, but only for a little while, then common sense starts to take over. I would feel a lot more disconcerted if the wheels were falling off our economy - but they aren't.

America's a bit off-colour at the moment, but Australia is still roaring along and so is Asia. I'm not feeling too gloomy about our outlook.

Julian

[Glenn]

I take it you don't rate the Queen's city too highly.

Never take me too seriously. I grew up on the shore.
Just a bit of creative writing.
What I mean is that when I lived there it was common for Aucklanders to feel the rest of the country that made the laws and so on just could not understand Auckland and as such Auckland was not well represented.
I think today this is even more true. However its market is a lot more volitile than ours. When things get thrashing around in Auckland these ideas and rumours can spread to the rest of the country when in fact there is no need for such reactions.
Clearly at the moment the real estate market in Auckland is headed down at a greater rate than down here. I wonder how long it will be before we catch the bug also.
So for me it can be handy. If I want to know what is going to happen in the future all I need do is look at Auckland and often it will happen elsewhere.

[Julian]

Glenn,

The filter-down thing always works, whether its good sentiment or bad. The difficulty is in trying to predict the timing, the order and the extent - which is different every time

The logical thing is to try to stack the odds in your favour, and as a commercial investor you're well familiar with how to do that.

As for Auckland, I encourage those PTers that have never been here to come up (or down), spend a bit of time, get in with a good active crowd (not too active) and enjoy the place for what it has to offer. You will hopefully have a blast.

Mind you the same could be said for most of this country - every place has its strengths, and if that's not enough (dare I say it) we've got about the best neighbours anybody could hope for - just across the ditch - and their playground's pretty bloody cool as well!

Julian