Ross Stanway, chief executive of Realty Services, which operates Bayleys and Eves, said buyers were prepared to look at properties outside their ideal. Photo / John Borren
Ross Stanway, chief executive of Realty Services, which operates Bayleys and Eves, said buyers were prepared to look at properties outside their ideal. Photo / John Borren
Leaky homes, outdated decor and homes that are one bedroom short are being snapped up in desirable suburbs as Tauranga's property market tightens.
Harcourt's general manager Nigel Martin said there were more buyers opting for "do-up" properties in a bid to get on the property ladder.
Others wanted to buy in sought-after, established parts of Tauranga and Mount Maunganui, which meant buying older, outdated homes that needed work to bring them up to today's standard.
"Some people want to be close to the action and the downtown."
Others were happy to pay similar prices to buy new homes in The Lakes or Papamoa East.
Vendors were being open and upfront about the issues and the selling price reflected the need for repair work to be done on the property, he said.
Ross Stanway, chief executive of Realty Services, which operates Bayleys and Eves, said buyers were prepared to look at properties outside their ideal.
"Definitely people are looking at buying a house that they can adjust and improve to end up with what they want," he said.
"If they can't locate the perfect property then they do look at alternatives like buying a house that needs some work on it."
The stigma around leaky homes had been overtaken by people factoring the repairs into the purchase price, he said.
"Issues are well disclosed and people can make their own judgment to correct it or level the house because the section is what they're after."
Tauranga Refresh Renovations franchise owner Mike Archer had Tauranga clients renovating homes, adding bedrooms and en suites, rather than forking out for larger homes in less desirable locations.
"We're starting to see more and more of that. They like where they are. If you can do an addition for $50,000 to $70,000 then the maths is there supporting the renovation," he said.
He had also had a lot of clients buy homes that they didn't like aspects of and renovating them to suit.
Price and location were the biggest drivers to buy, rather than the home itself, he said.
"They like the area, they like the schools, they like the access to the CBD because that's where they predominantly work," he said.
"It's busy, between new builds and renovations; it's a huge market here."
Tauranga, Mount Maunganui and Omokoroa First National owner Anton Jones said there was an increase in people looking for properties to work on.
"The whole market in general is very busy across the board really, but people are trying to look at getting a bit of captial gain, trying to get ahead.
"With the demand being quite high in general, it's pushing prices up a little bit now so [do-ups] are what people can afford as well."
David MacKay says the houses on offer have been well cared for. Photo / John Borren
Te Puke homes ideal for property investor
Papamoa resident David MacKay recently purchased an investment property in Te Puke and is now hard at work turning a solid, older house into a modern home.
Mr MacKay, who moved to the Bay from Auckland three years ago, says the older houses on offer in Te Puke have often been owned by owner-occupiers and are in well-cared-for conditions.
Working with a team of reliable tradesmen from Jack's Maintenance and Construction, the property has been turned around quickly and made ready to rent.
Most of the work he has done involves modernising the home by adding a heat pump and replacing the hot water cylinder with a gas system.
"A lot of emphasis goes in to warmth and insulation with an aim to provide quality living conditions for any tenant. This in turn means higher rent can be asked for and better tenants attracted."
He had also removed the swimming pool and surplus outbuildings.
Mr MacKay saw major potential in the small rural town. "I think it's the best shopping centre round for east Papamoa," he said. The new highway also meant the beach was only a few minutes' drive away. "The best of both worlds," he said.
The 400 or 500sq m sections being sold for new homes in Papamoa cost the same as 890 to 1000sq m with house in Te Puke, he said.
"The beauty of the larger sections facilitates the adding of a second dwelling, thus maximising an investor's net returns."
While the market had been slow in Te Puke, it was "really starting to move", he said. "It's a good service town for the rural sector with all of the services you could wish for."
A second property investment in Te Puke will bring the number of rentals Mr MacKay has owned to nine.
