An Auckland apartment that went to auction with a $1 reserve sold for $62,000 yesterday.
Speaking to 1News, listing agent Grant Elliott said the first bid was $1, then secondly $2 and then jumped to $5000.
According to the listing, a change of circumstances and mindset led to a short notice auction. The previous owner bought the two-bedroom, two-storey home, with a garage, on Quay St 18 years ago.
This week's listing said: "You could buy this two bedroom cash cow on your credit card. Leasehold and cheap? You bet. A little tired? Not as tired as you might think.
"What's the catch? The bank won't lend on it, you'll need a little bit of cash and the ability to put your hand high.
"Upside? It's perpetual passive income for virtually spare cash... like... forever."
The property was being rented for $630 per week, but Elliott said some "TLC and paint work" would lift the rental appraisal to $750-800 per week.
Asked why the home sold so cheap, Elliott said the apartment was on leasehold land, meaning the owner had to pay ground-rent to the freehold landowner. In the case of this townhouse, it was $17,344 per annum.
"You purchase an exclusive right to possession of the land and the buildings on it for a specific period of time according to the terms of the lease. Unit title ownership is most common in a building development where there are multiple owners," according to Settled.
Elliott said the purchaser was buying the dwelling but not the land it sat on.
"It's where the land is freehold below, however, a title is created on top leasing the land definitely or indefinitely at a cost which is usually reviewed every seven years."
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