Kaipara Harbour Sections

[Davo36]

I've been verbally offered 3 sections in a farm park type setup on the Kaipara Harbour as a trade for my commercial property in Papakura. They're part of Kauri Point Farm Park on the Tinopai peninsula, the name of the road is Te Wairoa Road.

They have a combined value (via 2007 registered valuations) of $1.9 million supposedly but I'm sure they're not worth nearly this much.

The GVs from 2005 (I've asked for updated ones but haven't got them yet) only add up to $805,000.

Now I'm a bit cagey about taking on 3 lifestyle/coastal sections. They of course have no income and only costs associated with holding them. And I might well not be able to sell them for ages. And I don't know if I'd want to build on them, and even if I did, who would rent or buy in this area?

I think there's a fair bit of land available around this area, with not much of it shifting I imagine.

Does anyone know anything about this development, or even about land in this general area? And help/info would be much appreciated.

David

[drelly]

Hey David,

The Kaipara was still getting pretty high growth in prices fairly late on in the boom... as late as 2007. However, the drop has been greater than Whangarei or the Far North. I believe that there's been a lot of speculation in that area. It's a massive harbour... one of the biggest in the world. There's also an under-sea power plant project in the pipe-line.

[Davo36]

Drelly, thanks for that. Hard to know if they power things would have any effect.

I've told the agent unless they come up with more money or more property, I'm going to leave it for now.

[Davo36]

The agent has come back to me sweetening the deal, they want to trade a commercial property in Nelson plus some Kaipara Harbour property.

However, I also found out there's a coal mine next door to the Kaipara Harbour property! Imagine that!

There's also notes on the titles stating that the sections they have for sale are subject to the Coal Mine Acts 1971 and 1979. This seems to mean the government owns any coal on the property and come and get it if they wish! Lol.

David

[drelly]

Ha! Better start digging before the Govmint gets it!

[muppet]

The Greeeeeenies will put a stop to that.

[Davo36]

I wonder what would happen if you dig a hole and throw a match in? Does the ground burn? Could make for handy winter heating.

Not much of a selling point for a lifestyle section though.

David

[Philmc1]

Lot of guessing and ifs and buts in this one - I'd leave it and wait for the next purchaser to come along for your property. I suspect the purchaser sees this as a way of getting rid of the Kaipara properties which he wouldn't otherwise be able to do.