Finally on the Board - First Investment Property Purchased

[Bluekiwi]

Well since my 1997 little property frolly into folly.

I would like to thank everyone who has answered my endless questions and for all the other posts they have put on this site (Even Kiwi)

This has been invaluable.

Mortgagee Auction (The strangest I have ever been to)
Price 236K
CV 350k
Nice Rosehill / Opaheke area of Papakura
Full site, 4 bedrooms, 2 bathrooms, garage
Rental estimate $400 per week

[mattnz]

Sounds like a good deal Blue Kiwi, congratulations.

What was so strange about the auction?

[SuperDad]

Well done BK!!!!!

Tell us more.

Paul.

[nzfrazer]

Nice return Blue, 8.8%, should give you some cash in your pocket before tax, looks like you banked some equity as well.

[Davo36]

Well done BK, have you settled yet?

[Bluekiwi]

Winner of a Crazy Auction

I wanted to put in a pre-auction bid to the bank of 250k, but they didnt want to look at as there wasnt enough time to contact other potential purchasers.

From my research I knew that it was a good deal at 250k as it is a quality property and in a good area.

The occupier had not allowed anybody access to the property but further DD proved my inkling to be correct, that the property had been owned for 9 years by my old boss in the 90's and I had in fact been in the property twice
Plus I knew that the extension he had done, had been done well.

Further calculations revealed I could go to 280k but then further due diligence revealed Caveats and Tresspass notices on the windows.

This caused me unease even though they were revealed as rubbbish claims, so I factored in 20k poss costs and restricted my max. poss. bid to 250k.

But before the auction I actually decided I wouldnt bid, as a man with a very young family, I didnt need potential troubles like this.

Then the Auction:

The weirdest auction I have been to.
A small room, with 12 people crammed in.
Just as the auctioner was about to start the bidding.

Some nutter interupts the proceedings handing out phamphlets and tresspass notices and starts in on this huge speech.

Finally the auctioner tells him to sit down.
He then offers me a phamplet which I reject, so he throws it at me.

I rejected it because I had just decided there was no way I wanted to buy this property now !!!

All through the auction, every 1 minute, he starts yelling out, in a very small confined room.
About tresspass notices, unlawful bidding, the corrupt NZ Govt, how we are comiting a crime, that by bidding we open ourselves up to criminal action, fines and prosecution.

The auctioner then loudly and agressively yells out at him that this is his auction and for him to be quiet, but that does not stop him.

At this stage I think, there is no way I ever want to buy this house and all the hassles that will likely go with it.
And so must everyone else as the bidding stops at 220K, way too low.

So I think oh well I might as well get in some bidding practice, so I go in at 230k along with a tirade of abuse.
The other phone bidder goes 235k.

Here I think lets play a bit and just go 236k.

Well blow me down, there is silence, what couuld this mean ?
I think oh well, maybe It will be passed in and I can negotiate a few terms with the bank.

Then all of sudden the auctioner start yelling out loudly and pointing at me, screaming above this other guy.

ITS ON THE MARKET, ITS SELLING NOW, THIS MAN HERE, THIS MAN HERE !!!!!

And I think, oh shit is this really happening, someone else bid please

Haha.. afterward this guy had been ejected, and Insurrance sorted, I felt better, even if there is 20k of hassle I have still done well.

8.8% on a quality property not some shoe box.

The whole office of the agents were genuinely astounded I had bought it at that price.
They said that he had put 2 bidders in the room off, and the phone bidder who went to 235k had also heard the commotion had also stopped bidding.

[Contrail]

Seems like a winner provided interest rates stay sane in the next 5 years.

I presume you'll be P+I to ensure against this.

[k1w1]

How much did Tane cost you? Great idea, btw.

[Keithw]

Great story
good luck with it

[k1w1]

This guy could single-handedly cost the banks thousands in reduced sale prices.

If the bank was run by a man named "Don", "Fat Tony" or "Carmine", I'd not want to be hanging around with him.

[Heg]

I'll pay him to come to the next auction that I'm bidding on

[mattnz]

Was the protestor at the process the former owner that the bank had foreclosed on?

If so you need to be careful that they haven't done serious damage inside or taken all the chattels, carpets etc.

[ActionMan]

Great story

I'll pay him to come to the next auction that I'm bidding on

Me too . Maybe Richmastery could put this in their archive of ways to get a deal.

[k1w1]

If he's on some vendetta to stop mortgagee sales, all he's doing is hurting the desperate vendor by reducing the selling price. What a knob.

[Bluekiwi]

Was the protestor at the process the former owner that the bank had foreclosed on?

If so you need to be careful that they haven't done serious damage inside or taken all the chattels, carpets etc.

No

I think he was roped in by her partner.

The partner is causing all the trouble, but the wife is the owner.

Yes, I am insured.