A house for $50k - it's there if you're willing to look for it

Thursday, 14 June 2018

A 'doer-upper' in Nightcaps, Southland, is listed for sale for $47,000

If you want a house for less than $50,000, you don't have to travel back in time. But you might need to travel to Gore.

New Zealand's median house price has jumped to a new record but there are still cheap properties to be found if you know where to look for them.

The Real Estate Institute has reported the country's median house price was $562,000 in May, up $27,000 on the year before.

Northland, Tasman and Manawatū/Wanganui all reached record median prices.

* Aucklanders flee the big city for more affordable housing

In Wellington, Lower Hutt had a record median of $530,000 and Wellington City hit a record $736,000.

'Of the 16 regions in New Zealand,13 saw an annual price increase – five of which were double-digit increases - showing that the demand for good property continues unabated. Only three regions saw a year-on-year price decrease – Auckland, Gisborne and Southland,' said chief executive Bindi Norwell.

'The record median price achieved in Tasman ($612,000) has seen the region skip both Wellington and the Bay of Plenty to become the second-most expensive region in New Zealand in just a single month highlighting just how popular the region continues to be – even as we head into winter.'

But data from Trade Me showed there were still affordable properties available around the country.

This Gore property needs work but is listed for sale at about $50,000.

A 'doer-upper' in Nightcaps, Southland, is listed for sale for $47,000. In Gore, a property needing 'loving tender care' is listed at just under $50,000. A two-bedroom bach in Selwyn is listed for $55,000.

A local Gore real estate agent, who did not want to be named, said she had more buyers than sellers for property in the region. Prices had lifted about 10 per cent year-on-year, she said.

Even in Christchurch, a leasehold property was listed as 'must be sold' and under $100,000.

ASB chief economist Nick Tuffley said whether those prices would rise in future would depend on things such as the population growth in a region or any increase in household income.

'Often when you have higher house prices, they are in areas where population is putting pressure on land prices. Higher incomes mean greater ability to pay more for a house as well. These factors tend to be an influence. There's a huge difference in the cost of living between a place where you can buy a house very cheaply and an inner-city Auckland suburb.'

Auckland's median price dropped 1.3 per cent from the same time in 2017.

The number of houses sold in May across the country was 1.3 per cent up on May 2017. But seasonally adjusted, the number of sales was at its lowest level since October last year.

The median number of days it took to sell a property increase by one day to 38 days.

Trade Me's least expensive listings in the main centres (based on expected sales price listed by agents):

Auckland

35 Maungakiekie Avenue, Greenlane

1A Siota Crescent, Kohimarama

28 Simkin Avenue, Saint Johns

(Note these are leasehold properties)

Wellington

8 Barclay Street, Newlands

14 Governor Road, Northland

26B Cheltenham Terrace, Newlands

Christchurch

8 Richards Avenue, Papanui

138 Rocking Horse Road, Southshore

8 Albemarle Street, Sydenham