Leaky building catchline latest sales ploy

It's not the most obvious advertising ploy. But property experts are praising agents who highlight leaky building problems, while warning would-be buyers to investigate fully.

Barfoot & Thompson agent Jill Jackson is marketing an Auckland block with the phrase "Leaky Building Bailout". Trade Me listings contain phrases such as "Dare To Buy". Jackson said the approach had paid off, with huge interest in the block of 24 apartments at 3 Morningside Drive, close to Kingsland.

The ad had drawn about 500 viewers and helped seal the sale of 15 apartments since March.

The one, two and three-bedroom apartments, which include washing machines, dryers and dishwashers, were being sold below capital valuations. Prices range from $135,000-$220,000, which includes a building levy for recladding work. The advert says that when all levies are collected, a contract would be signed and work will commence.

Jackson said there were "no guarantees" and repairs could cost more, but prospective buyers should investigate, get advice, and assess the risks before buying.

Property consultant and investor Olly Newland said he liked the upfront approach but warned potential buyers to fully investigate any leaky home. He said some punters could get a bargain if the numbers worked out, but he wouldn't touch such a home "with a 20-foot bargepole".

Other leaky properties advertised on Trade Me include:

A two-bedroom/two-bathroom townhouse in Mt Eden selling for $289,000 under the banner "Dare to Buy Mt Eden Chic". The listing says the body corporate is negotiating leaky building syndrome.

A three-bedroom apartment in Gulf Harbour, Rodney, selling for under $200,000 because of the leaky issue.

One note of caution should be sounded by the story of teacher Larisa Boyko. In December 2007 the Herald on Sunday reported she had been driven to three suicide attempts because she owned two leaky apartments, one in the Morningside Drive complex.