Demand remains consistent
With Team Griff having just chalked up its 74th ‘as is, where is’ sale, it would be fair to say that the demand for these properties remains consistent. Our most recent sale saw five active bidders sparring for the same property. It goes without saying that the owner was very happy with the final result.
Target marketing of our 475+ strong “as is” e-database as our first point of contact continues to produce good response for our clients. Equally fresh enquiry from new purchasers also continues to fuel this demand as the greater marketplace gains both a better understanding and confidence in the process of acquiring these affordable opportunities.
Not just investors buying
Last week in two instances ‘as is’ properties were purchased for family members. The first instance being a couple securing a property for their parents to live in. The second, an overseas client who specifically flew to Christchurch to purchase a property for his family and will be returning with them early next year to settle in Christchurch. Once again it’s a clear reflection that a broad cross section of purchasers are pursuing this affordable housing option.
While there is never any guarantee that any specific property will be able to be insured via a New Zealand insurer, we are now beginning to see numerous occasions where after either remedial works have been completed and or a favourable structural report (based on the structural integrity of the property) has been obtained, that several of the mainstream insurers are comfortable to re-insure these properties. It is pleasing to see that a common sense approach is beginning to prevail and more credence is being given to the integrity of the property rather than a black and white approach with regard to floor levels. We all know that around the country there are many properties that are fully insured and are “not on the level”.
More to come yet
Yes it appears that as both the policy holder and insurer are keen to reach settlement that the “uninsured” market will continue to forge ahead for some time yet. Also it is worth noting that in a way it is filling a need in the market by providing affordable housing in what is regarded by many as an overheated local marketplace, driven by the demand for housing and a fast growing population.