We asked Ross Barnett, principal at Coombe Smith to compare the numbers on two similar properties for sale in the beachside suburb of Papamoa, in the Bay of Plenty. One new and one second-hand of similar values.
Property one is a 15-year-old, three-bedroom, two-bathroom house, with a floor are of 201m2 and land area of 577m2 and a purchase price of $699,000.
Property two is a three-bedroom two-bathroom off-the-plan new build with a floor area of 186m2 and land area of 402m2.
Comparisons such as this are always fraught. For example, Barnett points out in terms of the second-hand property, not everyone will spend $3,500 per year on repairs and maintenance. “But you will have large items like painting come up, and I would expect the investor to spend $35,000…