WATCH THE REMEDIALS
With our City Apartment Market now 15 years old (apart from the eight “original” apartment buildings comprising 226 units that were all that were permitted in our CBD prior to 1991) there are a few traps out there for the young and restless.
The New Zealand “Real Estate Agents Act 1976” requires full disclosure from Agents on issues that may affect a transaction and that simply staying silent is termed “misrepresentation through non-disclosure”.
As Auckland's apartment experts the difficulty arises of an expectation by the public that City Sales knows all – but would you fall over yourself when listing with City Sales to add…”Oh, by the way, the building is full of fungus from leaks but new roofing and a total reclad could fix it – make sure you tell everyone at the OPENS.”?
Some Vendors are tempted to list with suburban housing agencies who quite innocently don't even know what a Body Corporate is – however the issue will inevitably come back to bite them should known problems not be disclosed.
We currently have 20 complexes on our flagged list where staff are not allowed to sell without a written acknowledgment from the purchaser that he/she has been advised there are remedial problems.
The reason I mention this today is that at this week's auctions a couple bidding had nearly bought into a complex where I believe the entire edifice needs to be replaced. Another, near City Sales House, has cost owners $120,000 each to repair leaking and been under reconstruction for a year.
Not that this makes apartments needing remedial work “saleproof”.
We sold last month a superb one bedroom with carpark needing some repairs, near the University, by auction for $175,000. With no issues I guess $230,000 would have been its weight. I think the Purchaser got a bargain.
I guess the belaboured message this month (was that also last month – and the month before???) is to deal with the good guys. I mean experts. I mean self-proclaimed experts.
Oh, and yes, the market is still firming.
MARTIN
