$500 for a family home?

A hapless New Zealand real estate agent has finally managed to shift a family home in Auckland, after reducing the asking price to a measly $500.

A three-bedroom Auckland residence (see photo below), which was listed by Ray White, had to be reduced to NZ$500 ($471) before finally being sold. 


The reason the leasehold property had been so hard to move is that the owner has to pay a land tax of more than NZ$37,000 per year – an annual levy of NZ$34,925 plus rates of NZ$2,133.

The property is now listed as being sold on Ray White's website. Ray White agent Benjamin Neal just last month told the New Zealand Herald that the home had been on the market for a year.

"It was at NZ$100,000, then it was at NZ$50,000 and then it was NZ$10,000 and now it's at NZ$500,” he said.

Any purchaser would be looking at a weekly bill of NZ$713. Unfortunately for the agent, a comparable home could be rented for NZ$600 per week, according to the New Zealand Herald.

The reason the leasehold property has such an expensive annual levy is that the rates have skyrocketed due to Auckland’s real estate boom.

The Ray White listing tried to make the best of a bad situation.

“Ample space for a trampoline or a vegetable garden and a freestanding garage with plenty of parking. Add your own touches to this solid home and make it yours!”

Read more: 

'How my outgoing tenant changed my investment strategy' 

6 cool snapshots of Australia's biggest developments 

What kind of property will $4 million buy you?



$500 for a family home?
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