Number 10 Crown Lynn Place. Photo / Janna Dixon
With an asking price of just $50,000, this New Lynn apartment could be Auckland's cheapest property.
The one-bedroom residence comes with a car park, shared outdoor pool, bbq area, gym and sauna. It is close to public transport and schools, and has happy tenants who are happy to stay on
and keep paying rent.
But if you think it sounds too good to be true, it probably is.
The advertisement bluntly describes the property as an "opportunity for the brave".
Ray White estate agent Damian Piggin confirms No 10 Crown Place is a leaky building - and a lengthy court battle lies ahead. The body corporate wants to sue Auckland Council for the full cost of repairs. Piggin estimates the case could drag on for three years.
Property lawyer Tony Steindle said prospective buyers should not count on court settlements, because council sometimes were not bound to pay people who knowingly bought a problem property.
"A conservative investor wouldn't factor in a windfall," he said.
Steindle added prospective buyers should get their hands on builders' reports, quotes and the minutes from body corporate meetings and watch for red flags such as disputes between the owners and questions over the cost of the repairs.
Best case scenario, the repairs could be completed quickly and the apartment could be sell at a profit in a few years, Steindle said. "I've seen people do it, but it's not for the faint hearted."
Piggin said identical apartments in the block were selling for around $180,000 before the structural issues were discovered. A few weeks ago, one sold for just $50,000 after nine months of the market.
He said there was a huge potential for a risk-savvy buyer to profit in the long run.
"It's highly probably the council will lose," Piggin said. "It's always a hard one, though - these buildings end up with a bit of stigma."
