Property riches: Mount home earns $2.4 million in profit

A Mount Maunganui home sold this year made the biggest resale profit of $2.4 million during the first quarter of 2019. Photo / GettyImages

A Mount Maunganui home has reaped nearly $2.5 million in resale profit, new data has revealed.

CoreLogic's latest Pain and Gain report showed the sale made the largest profit of all Tauranga properties sold between January 1 and March 31.

The $2.475m profit was made on a 330sq m home on Oceanbeach Rd, which was bought in 2013 for $1.7m and sold for $4.175m at the beginning of this year.

The majority of Tauranga residents made a median profit of $245,000 per property, while the city's gross profit from sales was $116,303,895.

The median for Tauranga properties sold at a loss was $31,250, with a gross loss of $506,000.

Properties in the city that resold for a gross profit in the first quarter were held for a median 6.5 years, while houses resold at a loss were owned for a median of 2.9 years.

CoreLogic senior property economist Kelvin Davidson. Photo / File

CoreLogic senior property economist Kelvin Davidson said the drive in resale profits was not surprising as house prices in the city continued to rise.

"If you have held for five or 10 years you are going to make a profit. Tauranga is a popular market and people want to live there," he said.

General manager of Tremains Bay of Plenty and Waikato, Anton Jones. Photo / File

General manager of Tremains Bay of Plenty and Waikato, Anton Jones, said an increasing market, demand for property, population growth and an "all-time low" in interest rates had each contributed to an increase in capital gain.

"However, we are not seeing as much capital gain as if you bought your property last year as opposed to five years ago," he said.

OneRoof editor Owen Vaughan said people did not buy houses to make a quick profit but sought affordability.

"It is their biggest purchase," he said. "It is about making sure their biggest purchase is going to be worth what they paid for it."

For people whose home value was not reflected in the sales price, Vaughan said, "Don't panic".

"If you have managed to take down a chunk of your mortgage means you might have enough change to stretch into your dream home," he said.

Bridie Holland bought her first home in Te Puke off her parents in 2005. Photo / Andrew Warner

Bridie Holland bought her first home in Te Puke off her parents in 2005.

In October 2018, the 43-year-old decided to sell her three-bedroom 1950s-built renovated home.

"My kids left home and I wanted to downsize," she said.

By December, Holland had put her home on an 830sq m section with double garage and sleep-out on the market.

"It sold within a week. It was very, very quick. I was amazed at how quickly it went," she said. "The big section was a drawcard and the garage and sleep-out."

Holland said the home sold at a profit, which she did not wish to disclose, after 13 years.

"I was pleased with the price ... When I bought, the market was down and when I sold the market was up," she said.

Holland has not yet spent her resale profit and is renting in Pāpāmoa until she finds the right home to move into.

"I am weighing up my options," she said.