Property Investment Blog

All Posts

Auckland house sells for 3 times CV

cash_finance_small.jpgA property in an ordinary Auckland suburb sold for three times its paper worth, topping the list of properties selling above their capital value last year.

The sale represented the highest percentage margin above CV in 2016, according to Homes.co.nz.

37 Man St in Queenstown - with a CV of $680,000 - sold in April for $1.81m.
SUPPLIED
37 Man St in Queenstown - with a CV of $680,000 - sold in April for $1.81m.

The fact Auckland houses were on average selling for 43 per cent above their CV showed "how unhelpful they are to those trying to understand value," Homes.co.nz head of marketing Jeremy O'Hanlon said.

"I'd be wary of using the CV for anything more than an indication of the rates you'll have to pay.

"Recent sales in the area are a great place to start when seeking to understand the value of a home."


Real Estate Institute of New Zealand (REINZ) spokesman Bryan Thomson said he felt such comparisons were irrelevant.

"The CV is set for rating purposes; it's not set to reflect the market value.

"The reality is, I could find you a property which has been renovated and not re-rated and sold for four times its CV."

PROPERTIES THAT SOLD WELL ABOVE CV


Within Auckland:

* 2/66 Arawa St, New Lynn: Sold in November for $1.376m with a CV of $460,000 (three times CV)

* 2/156 Coates Ave, Orakei: Sold in February for $2.05m with a CV of $800,000 (two times CV)

Outside Auckland:

* 15 Mills Rd, Brooklyn, Wellington: Sold in June for $970,000 with a CV of $400,000 (2.4 times CV)

* 8 Valley View, Mount Pleasant, Christchurch: Sold in November for $896,000 with a CV of $340k (2.6 times CV)

* 37 Man St, Queenstown: Sold in April for $1.81m with a CV of $680,000 (2.7 times CV)
Real Estate Investar Editor
Real Estate Investar Editor
Real Estate Investar provides intelligent software, tools and data to help you save time and make money in the residential property investment market.

Related Posts

[On-Demand Webinar] How to Find Affordable Capital Growth Properties

Most investors are either priced out of inner or middle ring capital city suburbs or have to resort to sacrificing their lifestyle to be able to afford the out-of-pocket holding costs. Join us for this live webinar and learn how to find and analyse affordable gentrifying areas which are primed to support solid sustained medium to long-term capital growth.

RBNZ Announcement - 13 November 2019

Reserve Bank of New Zealand Announcement - 13 November 2019

[On-Demand Webinar] How to Find Positive Cash Flow Properties

Learn how to find and analyse positively geared investment properties In this webinar replay, you will learn how to find property that will pay for itself, assist with finance serviceability and provide income regardless of what's happening in the property market.