03/09/2022
* Property Thoughts with B&T lead auctioneer Murray Smith *
Murray Smith is an outstanding auctioneer with almost 30 years of experience in Real Estate and has handled more than 15,000 property and charity auctions (and counting). He is a former National Auctioneering Champion and a finalist in the National Auctioneering Championships on numerous occasions.
Read on to hear his latest thoughts on the Property Industry...
"In a hot market there are regular headlines barking about property prices DOUBLING every 10 years, which means the value rises by 7.2% per annum. STOP THE PRESSES!
If buyers look at the long game with property, they would never quibble about the purchase price ever again. I have three recent sales in mind, where the picture is so much better than that.
House 1 in West Auckland - Original sale price 50 years ago, $8000. Sold recently for $790,000. This equates to 9.6% growth per annum, or 7.6 years to double.
House 2 in the Grammar Zone - Sold 50 years ago for $24000. Sold last week for $2.75m. That’s 9.9% growth per annum, or a double growth every 7.3 years.
House 3 in Central Auckland - Sold in 1987 for $86000 and sold again earlier this year for $2.6m. This is 10.2% of growth per annum! Which meant that it doubled every 7.1 years!
The only house that had been renovated in the period between the two sale dates was the first one (West Auckland). However, that had the slowest growth (strangely).
It is so frustrating watching buyers quibbling over a few thousand dollars when it comes to the point of purchase. I understand that affordability is sometimes a factor, but it is really sad to hear them say “it’s not worth it” and to see that people are prepared to walk away from their dream home for what is in essence a paltry sum when you look at the far bigger picture.
When will we realise that we are in probably one of the most affordable cycles in years? Is this something we can take on board today, in the current market, or will we have to wait 20, 30, 50 years before this rings true for us, by which time multiple opportunities would have passed us by?"
Happy Sunday everybody! 😎
Amos
Picture for attention but if interested, link to property here - https://www.barfoot.co.nz/816988