advice on Onehunga market

[keenbean]

I know this website is about PI - and one day I'd love to be in the position to be a PI... but we are in a bit of a financial quandry.

We sold our house in Onehunga in June 06 for 530. It resold less than a year later for 630

We are renting a scummy box on the edge of Onehunga/Mangere Bridge with two kids and no back garden. We've seen a house - northfacing 4 bd bungalow on full site in Onehunga (no garage - but room for one) that we could just afford but it's on a main road - and I'm v reluctant to buy on a main road.

The guy selling apparently turned down 490 at auction 4 months ago and is now v keen to sell. He is going to sell at auction - its CV is 450 - RA says we may be able to pick it up for around 460-480. RA said a year ago they could have sold it for 550 but market has changed in past three months and properties in Onehunga have dropped 10% in the past three months.

A house just round the corner (i.e. not main road) is on market for 650...

We wonder if we wait another six months if the 4bd northfacing bungalow of our dreams - not on a main road - is available in Onehunga for our purchase price....

what do you guys think? Am I dreaming or should we just buy this one - which seems like a bargain and is better than where we are currently living for not much more outlay.

[flyernzl]

Two parts to your quandary:
- forgetting the price, would you be happy living in the house of your choice (location, size, condition etc.) No point in buying a house that you would be unhappy in purely on dollars.
- can you then afford/finance your preferred choice. If the two houses appeal equally, at least you can then attempt to play off one vendor against the other in the current market.

Right now, no-one can predict which way things are going to move price-wise. Everyone is guessing, and your guess is as good as anyone else's.

[SuperDad]

Why don't you find a better rental property?

[Davo36]

The guy selling apparently turned down 490 at auction 4 months ago and is now v keen to sell. He is going to sell at auction - its CV is 450 - RA says we may be able to pick it up for around 460-480. RA said a year ago they could have sold it for 550 but market has changed in past three months and properties in Onehunga have dropped 10% in the past three months.

I would say the selling price of this house may be higher than you think. With auctions the agents try and make out to the buyers that it could go cheap. This is to get plenty of people along to the auction. They start bidding and are soon out of their depth. But you only need one of these buyers to get carried away and bid higher on the day.

If the vendor previously turned down 490 then I doubt they'll sell if for less now unless they're desperate for some reason i.e. bought another place.

David

[casacamo]

We are renting a scummy box on the edge of Onehunga/Mangere Bridge ....

.

Doesn't this put you on (or under) the Mangere Bridge,

or maybe in a boat on the harbour.

[keenbean]

very close...

to the harbour.. we live opposite the Onehunga wharf!

[keenbean]

Superdad...

Why don't you find a better rental property?

- sorry don't know how to do the quoting thing!!

Trying hard to find a better rental but places with decent backgardens are v. hard to find for under $500 in this area....

Thanks for all your input everyone. Just feeling very frustrated and want our own home... don't want to have to move to Mangere or Otahuhu to get it!

[keenbean]

With auctions the agents try and make out to the buyers that it could go cheap. This is to get plenty of people along to the auction. They start bidding and are soon out of their depth. But you only need one of these buyers to get carried away and bid higher on the day.

If the vendor previously turned down 490 then I doubt they'll sell if for less now unless they're desperate for some reason i.e. bought another place.

I think you are right. RA just doing her usual pre-auction drum up. Will keep an eye on it. I know I don't want to live on a main road so will sit tight. However, I do think the owner is getting desperate as they have already lined up a new place in Tauranga.

[mlkmnz]

I wouldn't get too desperate. Onehunga had a huge increase in value a couple of years ago but there's been a lot of rationalizing of late and you're right, values have gone down. I sold a place there 2 years ago and made 50% in a year, the people I sold it to subdivided, managed to sell the rear house and cant shift the front one without losing on the whole deal.

Just bide your time, go to the auction, see how it goes and if you don't win, there'll be plenty more.

[keenbean]

thanks milkmnz

It does feel as if prices are easing and we don't LOVE the property - even though I still think it will be a good buy as there is room to improve.

It is great to be able to ask people who are looking at properties all the time for their opinions. Thanks to everyone who has posted.

[keenbean]

An update

Just to let you all know the house sold at auction last night for 453k... 3 k over its CV. So I guess that is further evidence of a downturn!

Feeling V confident of getting our own home sometime in the next six months. Yay!