A Tale of Three Cities

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By Graham Goodisson

I’m currently wading through the murky waters of trying to sell and buy in three

separate cities. It’s in no way as impressive as it sounds. Each requires a different

strategy and each can play havoc on the emotions. Engaging all three cities at once

creates something of a perfect storm.

We’re currently living in Wellington, but right now I’m attempting to sell and buy in Tauranga,

Lower Hutt and Christchurch. This has led me to observe again how different

cities are form each other, not just in their geographies or demographics, but also

how the real estate markets differ from city to city.

Tauranga seems to have auctions and you engage an agent who has the ability to

work across all real estate companies. There are lots of houses on the

market—and lots of really badly built ones at that. I think the real decision in

Tauranga is, not how many avocados to buy, but how to not be caught with a

leaky home. Prices are similar to Wellington.

Selling in Lower Hutt is a little more reserved it seems. It will be sold on a BEO or

listed price basis and will be with the company that seemingly “owns” that

particular suburb. Succeeding here is about a realistic price expectation and also

the thought that it might take a little while. The question in the Hutt Valley is

this: “Will it occur before Christmas?” Immaculate presentation is the key. Stock

levels are still low so that is helpful.

Christchurch is another story again. There are always many questions around

earthquake repairs. Initially, we’ll aim to sell via auction to get some interest and

then we will see. Our agent is the top agent in the city and it’s interesting to be

part of his process. Only one company is involved. It’s a conservative market

with lots of houses to buy.

I’ve learnt that what I know in Wellington is only transferable in terms of doing

your checks, spending time learning the value of properties and that local

knowledge trumps all. Also, you should never be emotionally involved, and that

is just about impossible for an emotional being.

Graham Goodisson is a Registered Financial Adviser with Velocity Financial. No investment decision should be taken based on the information in this blog alone. A disclosure statement is available free of charge upon request.