Regional auction watch: Strong demand for family home

Wednesday 29 June 2016

Bidding was fast and competitive for a large family home generating an income at a Rotorua auction.

By Dana Kinita

The four bedroom house came with a one bedroom flat in the sought after area of Lynmore. It went under the hammer this week at Eves Realty Rotorua.

The downstairs flat had its own driveway and was currently tenanted for $200.  Set on a 1201sq m section, the property also had potential to subdivide.

Six people attended the auction but it was clear only two would be contesting for it.

The opening bid of $500,000 suggested by the auctioneer was quickly picked up before it was raised to $520,000 with a further counter of $560,000.  The auction was paused once it reached $580,000 to check with the vendor if it would sell.

It was purchased for $585,000 - far above its capital value of $450,000.

Meanwhile a block of four units which were passed in at auction last week in Fenton Park have sold.

With two 3-bedrooms units and two 2-bedroom units on Gibson St, it had a rental return of $695 with an appraisal to reach up to $900 per week.

Failing to attract any takers for it's $600,000 auction bid, it was later sold for $620,000.

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