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‘As is, where is’ home in Merivale zoned TC3 tops $1 million

‘As is, where is’ home in Merivale zoned TC3 tops $1 million

16 April 2014 – An ‘as is, where is’ home in Merivale, one of Christchurch’s most sought after suburbs, has sold at auction for a top price of $1.130 million.

The 721m2 section is zoned TC3, or technical category 3, indicating it is prone to moderate to significant land damage in further quakes although only minor land damage was evident at the Rhodes St property.

Listing agents Jenni and Jarod Rolton, of Harcourts Holmwood, say the price fetched for the land and house equates to $1567/m2 and compares with recent bare land sales in the chic suburb of more than $1000m/2.

‘As is, where is’ is the post earthquake term coined to describe homes which are sold without any insurance or EQC payments in place. They are either deemed uneconomic to repair or the vendor has decided to take the payout and move on.

“This home had a rental assessment of $950-$1000 a week, so bidders did see value because the structural engineering report saw it as safe to inhabit.

“The value in these properties is in the eye of the beholder,” Jenni Rolton says.

“Demand for ‘as is where is’ properties is extremely strong in some areas of Christchurch where land prices are higher. Interest is across the board. Developers see an opportunity to land bank, and rent out the home in the short term while there are still plenty of private buyers keen to take on this sort of project and use as investments.”

Rolton says the shortage of houses for sale in Christchurch, coupled with a scarcity of rental accommodation, is fuelling interest from both groups of buyers.

The 20-year-old Tuscan-style Rhodes St home was bought by a family who are looking forward to living there, she says. Occupied by the original owner before and since the earthquakes, the house comprises three bedrooms, three bathrooms, two living areas, kitchen, laundry and three car garaging.

A pre-auction bid of $930,000 opened the auction and there were five bidders.

Rolton says the insurance company commissioned a very thorough structural engineers report which was available to potential buyers, giving them confidence.

ENDS

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