House Flip Stuns Retirees
Concluding Remarks: (placed here and repeated at end)
Between July 2016 and February 2017, although the property market had somewhat flattened, properties such as this is constantly in demand.
The vendors had sold at what they had considered as the correct price having obtained an independent valuation of the property before the sale.
The purchasers had no intention of ‘flipping’ and their so-called ‘profit’ had in fact been clawed back by the latest legislation on capital gains.
All matters appear to be totally above board and the vendors have to forget about this and move on. There are brighter things to think about in their retirement years.
Look ahead, not back into the darker side of history.
{A summary of this concluding remarks in the Chinese Language appears later at the end of the Quotation of the NZ Herald report. Thanks.}
NZ Herald reported this story yesterday, April 17th 2017, at page A4.
” ‘We feel like suckers’ say the shocked pair who sold their dream home to a young family.” a quote from that page, headlined “$500,000 house flip stuns retirees”.
The gist of this story, as reported by the NZ Herald, goes like this:
Vendors: A retired pair - husband, not named; wife, Dianne Millar. Vendors built this house some fifteen years back and had been living there all this while until the sale.
Purchasers: Zhenfeng Xie and his wife Jeesy Li.
The property was not on the market in July 2016 but the purchasers visited the house to collect a Trade Me item and viewed the property at the same time. The vendors had no intention to sell at that time but downsizing to free up capital had been on their minds for some time. They obtained an independent valuation of the property and then negotiated the sale at a price of $1,950,000. The settlement date was agreed to be on January 27th.
In February 2017, two weeks after settlement, the property was on the market through a real estate agent. Millar attended an open home. She found that the house was empty and a bunch of flowers she had bought for the purchasers as a welcoming gift was displayed on a bench in the house.
Millar eventually learned that the property was sold through Raymond Kwan of First National Real Estate for $2,480,000.
This on-sale has yet to settle as at today’s date.
The purchaser Li, told the Herald that she and her husband had intended to lie in the house but had trouble raising finance and were forced to sell.
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2016年7月至2017年2月期间，虽然房地产市场有些扁平化，但房地产市场仍然不断需求。
供应商已经以他们认为在出售之前获得房地产独立估价的正确价格出售。
买家没有意图“投机”，其所谓的“利润”实际上已经被最新的资本利得法例所取消了。
所有事情似乎完全透明，卖家必须忘记这一点，继续前进。 在退休年份里，还有更明亮的事情要做。
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A search at Core Logic provides the following further details of the property:
Address: 208 Redoubt Road, Flat Bush, Manukau.
Land Area: 5,442 m2
Building Area: 374 m2
Building Age: 2000 - 2009
Government’s Rating Valuation: $1,125,000
Listed for sale by Raymond Kwan of Rutherford First National Real Estate on 10th February 2017 but withdrawn from the market on 18th March 2017.
A visit to the website of Rutherford First National Real Estate shows that the property is currently posted as “SOLD”.
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As a retired property valuer, I have done my homework on the value of the property.
I do not see anything wrong or ethical in this case.
Although there are talks that the property market in Auckland has stabilized, the fact that there is a shortage of housing in the Auckland region is real. Besides, the cost of construction has constantly been rising and the demand from new migrants to Auckland is great.
In this instance, the land on which the property stands is over 5,000 m2 and although, as yet, any possible subdivision is frowned upon, its possibility in the near future is real. The property, standing on high grounds, does have a commanding view of its neighboring areas.
Agent Raymond Kwan had marketed the property well in his description of the property thus:
Sold | House | 208 Redoubt Road, Flat Bush NZ 2013 | By Negotiation
Situated on top of the hill with spectacular 180-degree views. Welcomed by a beautiful tree lined circular driveway leading to the impressive lifestyle Manor through established park like grounds & set within 5442m2 of mature landscaping, this stunning modern property offers wonderful peace, tranquility, and privacy. There is an abundance of high stud living space with stunning views including enormous family living areas and formal lounge with modern fireplace. A stylish well-equipped, kitchen incorporating large pantries and quality appliances adjoins the dining area opening onto a large portico.
Outdoor living at its best boasts scenic alfresco dining or BBQ on paved & sheltered patios surrounded by raised gardens. The main house comprises of 4 large bedrooms including 2 en-suites on upper level with panoramic views over rolling countryside. An added advantage of a large barn offers a large rumpus, bathroom facilities and additional garaging for cars, boats, and campers or as a workshop for all your family needs.
This lovely property offers a country lifestyle with the convenience of the city. Just minutes from motorway access/exchange and the ever-expanding hub of Flat Bush and Manukau City.
Concluding Remarks:
Between July 2016 and February 2017, although the property market had somewhat flattened, properties such as this is constantly in demand.
The vendors had sold at what they had considered as the correct price having obtained an independent valuation of the property before the sale.
The purchasers had no intention of ‘flipping’ and their so-called ‘profit’ had in fact been clawed back by the latest legislation on capital gains.
All matters appear to be totoally above board and the vendors have to forget about this and move on. There are brighter things to think about in their retirement years.
Look ahead, not back into the darker side of history.