It will be weeks if not months before we see the flow on effect. One thing is sure. Some leaky building repairs may never happen or be seriously delayed because Mainzeal was one of the main players in the field.
Receiverships rarely end up happily especially for unsecured creditors . If there is any money the receivers get paid first, then some wages, then secured creditors ( e.g. banks) and way off in the distance unsecured creditors ( e.g. sub contractors) .
Below are the latest apartment sale results. Well built non leaky apartments are likely to increase in price as a result of Mainzeal’s collapse
All 4 apartments taken to auction at Ray White City Apartments today were sold under the hammer after spirited bidding, and a leasehold unit on Princes Wharf was sold before the auction.
There was less interest in 2 parking spots in an apartment building for which a 10-year lease on the rights to occupy was offered. One of them got a single bid, with no interest in the other.
Newmarket, 9 Sarawia St, unit 505:
Features: on fee simple cross-lease, one bedroom, parking space
Outgoings: rates $1089/year including gst; body corp levy $2840/year
Income assessment: $350/week
Outcome: sold for $250,500
Unilodge, 138 Anzac Avenue, unit 16 & 17:
Features: 2 parking spaces in the Unilodge Apartments building, storage lockers can be added; up for auction were right-to-occupy leases for a 10-year term
Outgoings: rates & body corp levy $41/week each, locker $4/week including gst
Income assessment: Unilodge rents out parking spaces for $57.50/week + gst with no storage locker; with a locker the return could be $60-70/week
Outcome: Unit 16 passed in at the sole bid of $1000, no bid on unit 17
HarbourCity, 16 Gore St, unit 31A:
Features: 38m², fully furnished one bedroom
Outgoings: rates $1032/year including gst; body corp levy $3044/year
Income assessment: current rent $385/week
Volt, 430 Queen St, unit 1324:
Features: 43m² including deck, furnished 2 bedrooms, parking available for rent at $50-60/week
Outgoings: rates $1033/year including gst; body corp levy $3937/year (including $141.50 arrears)
Income assessment: $420/week, but higher prices being asked for other units
Outcome: sold for $238,000
Hobson Oaks, 188 Hobson St, unit 304:
Features: 33m², fully furnished one bedroom, deck
Outgoings: rates $2156/year including gst – commercially rated but can be adjusted to residential rates if owner-occupied; body corp levy $3598/year
Income assessment: subject to the Oaks on Hobson hotel lease under 20-year lease from December 2005
Outcome: sold for $125,750 (+ gst because it’s in the hotel pool)
Princes Wharf, 145 Quay St, unit 49:
Features: leasehold 52m², fully furnished one bedroom, outlook over the wharf’s internal road
Outgoings: rates $1128/year including gst; body corp levy $8819/year, ground rent $3069/year
Outcome: sold prior for $75,000.
Below is the front cover of the latest (February) issue of the NZ Property Investor magazine which features an interview with yours truly and an excerpt from my latest book
The Rascal’s Guide to Real Estate – updated 3rd edition. Some say this issue should have been rated R18 and sold in a plain brown wrapper. Get yourself a copy — and be careful whom you show it to.