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To Sell on or to build up in New Lynn..

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  • To Sell on or to build up in New Lynn..

    Hi there, I am pretty new to this sort of thing and i'm looking for a bit of advice for a friend of mine in regards to his property..

    So my friend has a property that he has owned in New Lynn (Seabrook ave) for the past 12 years, the land is 1440 sqm with a 110 sqm dwelling on it. There is a slight decline on the land but other than that it is suitable to build on. It has been subdivided in the past and there is a neighboring property that shares the driveway. The neighboring house is 446 sqm with a total land size of 1886 sqm. The properties are not freehold so by my understanding any improvements or building couldn't be done until the neighbor agrees and additional services are put down the driveway.

    Now he talked to me yesterday about a real estate agent who has been trying to push him into selling his house for the past 5 years or so, coming around with information about surrounding houses and whatnot and it seems like every time this agent comes around hes offering my friend a higher and higher price. The offers have started around $700k and have since increased to $1.2m in his hand to walk away from the property.

    He has also mentioned that he has spoken to the neighbor and they seem very happy to freehold the property as it will increase her house value and generally clean up the driveway and parking areas.

    What is the best thing to do in this situation? $1.2m is a very temping number for him, (his current morgage is only about 40k) he would most likely buy two houses with the money, a small 2 bedroom to live in and a rental property to make those capital gains on. Another option could be to sit on the property, maybe get it freehold and have the services ready and sell it at a later time or to build on it himself.

    Cheers.

  • #2
    Originally posted by Enzee View Post
    Hi there, I am pretty new to this sort of thing and i'm looking for a bit of advice for a friend of mine in regards to his property..

    So my friend has a property that he has owned in New Lynn (Seabrook ave) for the past 12 years, the land is 1440 sqm with a 110 sqm dwelling on it. There is a slight decline on the land but other than that it is suitable to build on. It has been subdivided in the past and there is a neighboring property that shares the driveway. The neighboring house is 446 sqm with a total land size of 1886 sqm. The properties are not freehold so by my understanding any improvements or building couldn't be done until the neighbor agrees and additional services are put down the driveway.

    Now he talked to me yesterday about a real estate agent who has been trying to push him into selling his house for the past 5 years or so, coming around with information about surrounding houses and whatnot and it seems like every time this agent comes around hes offering my friend a higher and higher price. The offers have started around $700k and have since increased to $1.2m in his hand to walk away from the property.

    He has also mentioned that he has spoken to the neighbor and they seem very happy to freehold the property as it will increase her house value and generally clean up the driveway and parking areas.

    What is the best thing to do in this situation? $1.2m is a very temping number for him, (his current morgage is only about 40k) he would most likely buy two houses with the money, a small 2 bedroom to live in and a rental property to make those capital gains on. Another option could be to sit on the property, maybe get it freehold and have the services ready and sell it at a later time or to build on it himself.

    Cheers.
    1440 Sqm property in New Lynn? You could get 6+ houses on a site that size!

    your friend would be a fool to sell for $1.2 million - I would definitely recommend getting some registered valuations done and tell the agent that is knocking on his door to f@#k off with his lowball scumbag offers.

    it wouldn't surprise me if this would be worth $1.5 million or more.

    have you tried getting a free online valuation at least? Go to homes.co.nz and type in the street address and see how you go.

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    • #3
      I have a similar situation on a 1500 sqm section: homes dot co dot nz doesn't seem to account for the subdivisability. FYI homes gives is a median value of 930K an agent quoted 1.2 M 6 months ago when i went into their office for a chat. A registered valuation would be prudent for your friend, also I would suggest they trawl homes dot co for similar properties with and see how many have sold and for how much. Unless they are in a hurry to sell probably best to take their time and consider all angles. Noting that there will have to be some value for a person to buy and subdivide so they won't necessarily be able to capture all of the future value. SOmehow I think there was a podcast by property ventures featuring Gillian (?) on this topic a year ago???

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      • #4
        I thought the max you can have is 4 with the rezoned value of 300sqm per house. The website you liked gave me a valuation of 905k which seems very undervalued. I will link him this thread though so he can see the different opinions that might get posed. Thanks.

        Comment


        • #5
          FYI recently we were looking at a property A (section @1200) and sharing a driveway with another about same size section. We went to seek advice from a planner at Manukau city council and were advised that subdivision in A will have to meet a minimum driveway width (think 3.6m) requirement.

          I am unsure if this is the case in other Auckland suburbs or that advice is credible. In any case we did not pursue any further.

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