A sprawling Herne Bay house on one of the country's priciest waterfront streets is up for sale for little more than the value of the land it sits on.

Several renovations around the pool and interior of the Marine Parade house do not meet building standards and the garage has no code of compliance certificate. The 1944 art deco original also leaks after being reclad in the 1990s for then owner Ross Munro.

Munro, chief executive for clothing company Canterbury, sold the property to barrister Gordon James Arthur Price for $3.15 million in 2003. Real estate prices have boomed in the area in the last decade but Price put it on the market last week with a price tag of $3m.

Auckland Property Investors' Association president David Whitburn said the house would be worth more than $4.5m if it did not have its problems and could become a profitable investment for a buyer with a knack for project management.


"You're buying a headache," he said, adding that a buyer needed an experienced building consultant and good lawyers. "But I think there will still be keen interest. You get a lot of kudos for having a house on Marine Parade."

Sotheby's agent John Greenwood said the problems were repairable. "It's a fantastic piece of land in a great neighbourhood."

The property has beach access and views of the Harbour Bridge from all living areas and bedrooms Greenwood said "full disclosure" was important and he had comprehensive information packs on hand for interested buyers.

Insurance Council spokesman Brett Solvander said issues such as non-compliant renovations could make comprehensive insurance expensive and difficult.