Otara bargain: No bids yet

The Otara house was up for $600,000 but has failed to draw interest. Photo / First National

A bargain property on a quarter acre in South Auckland with a price tag of about $600,000 is still failing to attract much interest.

The real estate agent selling the property says the biggest problem was the people who would live in the Otara house still cannot afford the deposit on it.

Only five groups - all investors - attended the open home this afternoon at 13 Sandbrook Avenue in Otara and no one has made a bid on the property, despite intense media coverage last week.

First National marketing agent Lez King said while interest in the five bedroom, two bathroom property was up on last week's open home when no one walked through the door, it was still not as much as he had expected. Especially when the listing had over 3000 views on Trade Me within 10 days being listed, which was usually the amount recorded over a two month period.

"At least there were people coming through and positive comments but that's where it is at the moment. But five people is five more than last week."

Another person had arranged a viewing for tomorrow.

Open homes did appear to be quieter over long weekends, but Mr King said that was not the biggest barrier.

"The real underlying problem is no one has a deposit other than investors. The sort of person who would be very happy to live in Otara doesn't have $100,000.

"It's very very tough for the South Auckland buyer. The way it's going everyone is going to be tenants. It's a sad fact."

The 30 per cent deposit now required by banks for investors did not appear to be a problem as he said many "were fairly well heeled" so could use equity in their other properties to fund it.

The property was currently tenanted below market value and needed some work. Mr King expected it would rent for at least $500 per week although no official market appraisal had been done as yet.

The owner wants the property sold next month and Mr King said he would be surprised if he did not have an offer to present to the owner by Wednesday. "I honestly expected to get my hand bitten off."

The details

• 13 Sandbrook Avenue, Otara NZ

• 5 bed, 2 bath

• 1158m2 section, 140m2 floor space

• Vendors want low to mid $600,000

• Offers before May 10

• Private fully fenced section with a park view