Our First Home Titirangi property sells for $721,000

The second property in TV One's Our First Home has sold at auction tonight, exceeding expectations as it sold for $721,000.

The Schreuders bought the Titirangi property for $480,000 before embarking on the 10-week renovation project. The reserve was set at $530,600, leaving them with a sizeable profit of $190,400.

Bidding started at $540,000 and quickly rocketed up past $700,000.

Image 1 of 23: The Gourley's kitchen before renovation.

A property expert had picked the house to sell for between $660,000-$710,000 ahead of the auction.

Last night, the Gourleys made $143,500 profit after selling their three-bedroom Avondale home for $720,500.

That represented a 24.87% increase in the property's value, compared to the Schreuders' 35.88 per cent increase, which puts them in the lead to win the $100,000 cash prize.

But the family may not walk away with the full $190,400 if the Inland Revenue Department follow up and demand they pay income tax on the profit.

The family could be liable for 33 per cent tax on the profit made at last night's auction, which would see them forced to handover $62,700 to the tax man.

They will now compete with the Wardlaws, who will auction their Te Atatu South property tomorrow night in the hopes of winning the $100,000 cash prize.

More than half a million viewers tuned in to watch last night's live auction show, making it the highest rating episode of the season and putting it well ahead of X Factor NZ, which saw just 262,000 viewers tune in.

- nzherald.co.nz