KEY POINTS:
An Auckland couple lost 83 per cent of their investment when they sold a property in one of the city's best urban precincts.
As the gloss goes off the Auckland housing market, the Mt Albert pair, who paid $349,000 three years ago for a Beaumont Quarter apartment, have sold it for $58,600.
The couple bought the Freemans Bay unit in July 2005 through the now-collapsed Blue Chip property investment business.
The level-two 42sq m one-bedroom unit with a balcony, off Beaumont St opposite Victoria Park, attracted bargain-hunters when it was auctioned on Wednesday.
Agent Matt Jones of Ray White said some bidders arrived at his firm's Lorne St offices expecting to pay only $10,000 or $20,000 because ground rents at Beaumont are about to be significantly increased.
The sellers decided to auction the apartment quickly without any reserve before ground rents rocketed.
"They were pretty devastated," Mr Jones said. "They accepted it but they were not happy. They didn't want to come to the auction."
Bidding opened at $30,000 and a Howick woman bought the unit.
It is rented for $375 a week, bringing in $19,500 a year.
