Owner takes punt with $1 reserve

ROB KIDD
Last updated 05:00 02/02/2014

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It's 15 minutes from the middle of Gisborne, overlooks an expanse of vineyards and it could be yours for $1.

The 1082sqm plot was on the market for three months at the end of last year but there was no interest.

The owner was keen to get rid of it and rural real estate agent Warwick Searle gave him a list of options.

His choice was a surprise.

On February 27, the section will go under the hammer with a $1 reserve - the first time LJ Hooker has run an auction like it.

"The current owner inherited this lot as part of another property deal some years ago and he's just been sitting on it waiting for the market to improve but it's been fairly flat the last few years," Searle said.

"He decided to take a punt. He's obviously a bit of a gambler."

The land has a capital value of $120,000 but the experienced agent would not be drawn on how much he thought would-be buyers might stretch to.

"It's a true test of the market. If someone puts their hand up at a dollar it's gone . . . ask me on the 27th and I'll tell you what it's worth."

The house on the section in front sold for $650,000 and Searle was keen to stress there was no "catch" with the $1 reserve.

A house on the section would be easily hooked up with power and a phone line, and a geotechnical report had been completed.

"It's got beautiful views - there's really nothing wrong with it," Searle said.

"I think that'll be the biggest thing, making sure people understand that there's nothing tricky about it.

"It's just a vendor who wants it gone."

He reckoned the perfect buyers would be those looking for a low-maintenance lifestyle block.

It would require some basic earthwork before building could commence but Searle said it was nothing drastic.

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- © Fairfax NZ News

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