by Miriam Bell
Canterbury Property Investors Association past-president Lewis Donaldson says there are opportunities for investors in the city’s “as is, where is” market.
This a niche market which involves the sale of damaged homes which haven't been repaired and are mostly uninsured.
Similar to the niche market for leaky homes, people buy a property at a reduced price and then fix it up to add value for resale or to get it up to rental standards.
Donaldson says it’s a great way for investors to create equity in an investment.
“It is a bit risky – especially as there are different scales of damage and repair.
"Some properties might be moderately damaged, while others might have severe damage.
“So interested parties need to have some knowledge of what a house might cost to repair and how to go about it effectively under the circumstances.”
These factors mean the market is not as easy to navigate successfully as it might first sound, he says.
“But, if it all goes according to plan, there are rewards.”
Ray White New Brighton’s Phil Jones is a specialist in the “as is, where is” market, which he describes as “busy”.
He says the market has always been dominated by investors – for good reason.
“Prices are going up and there is potential for decent capital growth. Plus it is easy to add value to these properties by getting them up to standard.”
Tradies and parents buying property for their children are increasingly moving into the market too, Jones says.
“But it remains a market full of potential for investors.”
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