On House Hunt, we're tracking the highs... GLASSES CLINK ...and lows... It's just too expensive. ...of ordinary Kiwis across the country... Getting a house is very important. ...as they hunt for their first home in one of the most overpriced markets in the Western world. This week ` we return to the battleground of Auckland, and Ethan Tey's epic fight to buy a house. At 440,000, going in 10s. At 50. 95 at the front. Round us to 500. Holy moly, and my heartbeat just going even faster. And well-named couple Will and Grace... He's definitely the gay one. BOTH LAUGH ...are desperate to make adventure-capital Queenstown their home sweet home. Wow If we don't buy a house now in Queenstown, we'll probably never afford to buy a house in Queenstown. Queenstown ` home of the rich, the famous, those seeking adventure and others looking for something pretty special. It's even on the world version of Monopoly. No surprises that it's second only to Auckland in having some of the most expensive house prices in the country. Hoping to pass go and collect just one house are young British couple Will and Grace,... Yes, we are Will and Grace. Most people remember the TV show. ...but not the famous sitcom Will and Grace. He's definitely the gay one. BOTH LAUGH These two met on the ski slopes. It just kind of happened. Here we are. Five years later, buying a house together, so... (LAUGHS) What's Grace like? Quite self-opinionated,... (GASPS) ...likes things her way, but is quite... Do you want to eat for the rest of the week? BOTH LAUGH I do most of the cooking. (GASPS) After a working holiday to NZ, they just couldn't bear to leave. Yep, all good, guys. My names Will, and I'll be your driver for the next hour or so. It's just great. You know, on the weekend, you can just 45 minutes' drive up the mountain. Having all this stuff on your doorstep so close, that's the perk, really. Will and Grace have a decent budget ` $480,000 to spend. That one's a great address. But with a long queue of overseas friends and family that'll be looking to crash on the couch, they're hoping for three bedrooms. A million dollars, so... Hmm. New to property, and with Mum and Dad on the other side of the world, Will and Grace are on their own, and they've had to come up to speed pretty quickly. Pretty stressful, but we're just hoping at the end of it, it will all be worth it. It's not only a big investment; it's a big commitment. So after buying their first home, could marriage be on the cards? Pfft! Whoa, whoa, whoa, no. (LAUGHS) Everyone's like, 'Why are you buying a house if you're not even married?' No. Buying a house is more than a marriage, I think, anyways. God. Marriage hasn't crossed our mind, and I'm sure it won't for a while longer, will it? No. Jeez, no. Nope. It's the last thing, really, on our mind at the minute. No. Definitely. We won't be able to afford one anyway. So that's a no. At their age, Will and Grace are a long way from the retirement home. They want somewhere central for the nightlife and their jobs, but that'll be expensive. The first place they're viewing is this smart townhouse. It has three bedrooms, two bathrooms and even a garage for their sports gear. Its CV is $520,000, but it needs TLC, which could bring the price down. It must be this one. Yeah. I quite like that it's at the end, and it's not the middle one. Hi. Gidday, how are you? How's it going? Good. I'm Mark Martin from Bayleys Locations. I'm Grace. Grace and Will. I'm the gay one. Grace and Will. He's definitely the gay one. CRICKETS CHIRP, CURIOUS MUSIC I guess these guys missed that sitcom. Um, so what I was going to say today is go and have a walk around. There's two bedrooms and a bathroom downstairs, and then we've got a master and a bathroom upstairs. It is perfect for first-home buyers. It needs a bit of work. Go and have a wander through, guys. Cool. Thank you. This is the kitchen. Nice outside area there. Their first impressions of the lounge and kitchen are better than the first impressions they left with the agent. Cool little hatch. Nice. It's like a window to a window. I think that's known as. Stand back, real estate agents ` Will's got all the lingo. That's good. Will upstairs have even more to offer? This is the master bedroom. I like the fact that there's a lot of windows and... The round window's quite nice. They got lake views from here, which is nice. Good size wardrobe, I think, yeah. For all of Grace's clothes, probably. Yeah, probably my clothes. Some sort of stain on the carpet there. Quite weird. (LAUGHS) The en suite bathroom isn't shaking their poodle either. Be like a workout getting into the bath. Does need a bit of work, but... Yeah. ...we're not a afraid of a bit of work, you know. No. It's OK. There's the idea of a do-up, and then there's the reality. Let's have a look in the garage. Yeah, we'll go and have a look at the rest of the bedrooms. Yeah, shall we? But the good news is there's an extra toilet. This is quite handy ` small toilet. And an extra smell. (SNIFFS) Smells like there might have been a murder in here at some point. Yeah, there could have well been a murder in here. This is the main bathroom. Bit of a funky odour downstairs. The deeper Will and Grace delve into the bowels of the house, the less they like it. Do you smell that, though? These aren't as good as the ones upstairs. We wouldn't be living in these rooms, would we? Odours aside, they know it could be a sound investment. Could charge about 400 bucks a week for this room, I reckon. Yeah. Well, maybe 200. Sure. So what did you think, guys? Is there an asking price for this or...? We'd expect it to be somewhere in the fours. Mm. A property of this age and location, obviously` So within our budget. Yeah, exactly. It's within your budget, so that's why I thought, you know, worthwhile for you guys to view it. Definitely needs a bit of a refurbishment, but, you know, perfect for you guys. You know, bit of potential. That doesn't scare you too much? No, no, you know, a bit of a project. It's realistic for a first-time buyer, you know. Their words say, 'We're not scared,' but their faces say, 'We're terrified.' Probably not really for us, we don't think. No, we didn't really feel comfortable in there. We're happy for doer-upper and stuff, but... Yeah, to an extent. Will and Grace want something more comfortable, but with their budget, that means looking much further out. Also facing a move out of town is single Aucklander Ethan Tey. Like Will and Grace, Malaysian-born Ethan is hooked on NZ. When I was a student, I started falling in love with this country. It's so different from where I come from. It's a wonderful country. Who doesn't want to be a Kiwi? So far, Ethan's hard-won savings have bought him nothing but a reality check. This one was on the market for 475. Within three days of it being on the market, < we had three offers, all of them above asking. Wow. The only house and garden Ethan can afford in the city is the magazine of the same name, so he's been looking out west at a place in Massey. With a CV of $390,000, it has three bedrooms, one bathroom, wooden floors and ` compared to the inner city ` a sizable garden. This sort of house that I really love, and the CV's low, and three bedrooms, weatherboard and just a simple layout and design. Massey has had its fair share of ups and downs, and it's not everyone's choice. But as prices in Auckland continue to rocket, this is one of the last affordable spots. Hopefully it doesn't attract a lot of buyer. So there's my little sense of hope that, mm, this house, potentially, I can actually get it. The auction is going to be at 3.30 today. (LAUGHS) THUNDER RUMBLES The rain has started. Hopefully big traffic jam. All the buyer can't make it there, and then the seller just want to sell it. Perfect timing! Yeah! SUSPENSEFUL MUSIC Ethan arrives early with friends Patric and Terry for moral support. But he's not the only one. Even the rain can't put a dampener on Auckland's volcanic market. Holy Moly. I started to see what sort of buyers coming and a few more competitor coming in. THUNDER RUMBLES Even though it's raining, more and more people are coming in. Everyone just huddle inside the house. If you want to bid outside, you need to yell it out to us. I'd hate to sell it if you were trying to bid out there. You can start to feel the tensions. Start to feel my heart rate go a little bit faster. Ladies and gentlemen, good afternoon. Welcome to the auction. I throw it over to you. Someone be brave and start us off. Let's get going folks. $430,000? Should we start it there? I'm going to bid it, then, on behalf of the vendors, folks. I'm going to starts us off at $430,000. Let's get going now. At 430 with me. Make it 40. And 440 and welcome to the bidding and good luck. At 440 here... With bids coming in left, right and centre, Ethan's head is spinning. The price is already in the high fours and he hasn't bid, but he'd better. This house is about to go! UPBEAT MUSIC In the South Island, adventurous Brits Will and Grace have realised the Queenstown party zone is out of their price range. They're hoping their $480,000 will buy them a little more further out in Frankton. Local agent Kirsty Sinclair reckons it's the perfect choice for the first timers. This is a really popular area. There's several factors driving that. One, it's a flat, sunny community of locals, which can be hard to find in Queenstown. There is a brand new primary school, which is really popular. You've got a great shopping centre right on your back doorstep. This is a really popular suburb. I can't believe that we've got you here on a rainy day! Rain or shine, it seems Frankton is the place to be. Kirsty's found Will and Grace a cute, Hardiplank cottage. It's got three bedrooms, one bathroom and a CV of $340,000, and there's even a sleepout for freeloading rellies. Hello. Hello. Hi. How you doing? Come on in. Oh wow. This is cute. It's lovely, isn't it? Yeah. I like this area. Mm. This would be awesome on a nice sunny day. Wow. Wow. Love the beams. This is cute. I love the beams. It is quite cute. Just have a wee look, and then I'll answer your questions. Yep. It's a big kitchen. It's nice how it's still open plan. I like the wood burner. Yeah, it's important to have a wood burner, I think, especially for Queenstown winters. It's pretty` pretty chilly here. Oh, this is the main bathroom. It's a good size. That's quite nice. Quite a modern one. I quite like it. It's a good feature, yeah. Grace is smitten, but Will may need some persuading. It's a sink, so... it does the job, I think. Oh, so there's two bedrooms. Yeah, a second bedroom, I think. At least you'll get a lot of sun as well. The sun will be coming this way most of the time. Wow, so this is the master bedroom. Not too sure about the bed, but yeah, whatever rocks your boat, I suppose. Whatever... I love the feel of it so far. It's quite homely. The beams ` it's quite a lot of character to it. It seems quite a lot more to it than just, you know, four walls. It's nice. Wow, massive firewood. Outside, even Will is starting to see the rustic charm. Storage shed. That'd be perfect for all our paraphernalia, wouldn't it? There's a veggie garden! (LAUGHS) Amazing! Grow our own fruit and veg. Yeah, it's a nice size, kind of, wrap-around garden, which I think is good. It seems this is the house that keeps on giving. Oh, so we're back at the carport. Yeah. It's like a loop. This must be like a shed or...? Sort of sleepout scenario. Fourth bedroom, yeah. Wow, it is tiny. We could rent it out. Yeah. (LAUGHS) I don't know who to, but I'm sure we'll find someone. Someone... small. Good storage again, isn't it? The cottage has ticked Will and Grace's many boxes. But a couple of streets away, Kirsty's got another place that might be streets ahead. With two bedrooms, one bathroom, renovated and insulated, it's very flash. The CV here is also within budget, so it's well worth checking out. UPBEAT MUSIC But will it have the same wow factor? Wow. Oh, it's a big area. Those views. Wow, that's awesome. Kind of focusses on the fire there. That's really nice. Yeah, could put, like, a nice... sofa there. It may not have the character of the last place, but everything is fresh and new. They've done it out really nice. Yeah. A nice modern kitchen. You could just easily move straight into this. It's a good level of modern... ism, really, if that's a word. Modernism. (LAUGHS) Just made that up, but it works. Modernism's well over a hundred years old now, Will, but don't sweat it. Yep. Have got a few skylights, which is cool. This I don't really know. Is this like the office? Or a chill-out area? (SCOFFS) Chill-out area. It would make a good chill-out area, like PlayStation room. No, this would definitely be the wardrobe. Projector, ultimately. Xbox. Yep, in your dreams. Nice bathroom. This feels like a hotel, it's so clean and modern. Yep. Built-in laundry. That's always good. Yeah, there's even a little window. You can have a glass of champagne while you're looking outside. (LAUGHS) It's modern, clean and newer, but does it have that special something Will and Grace found so attractive about the cottage? This must be the master bedroom. Master bedroom has got lake views. Lake views are a good start, and then there's the wardrobe. It's got a walk-in wardrobe. That is an amazing wardrobe. The space and the shoe space. Did we mention the shoe space? Lots of shoes. (LAUGHS) No, that's really nice. It's a different type of house. Hasn't got the beams, and it's a more modern house. Not really so much, like, character-driven like the old house` like the other house, is it? No, no. Now Will and Grace have a decision to make ` character features or modern comforts? Back up in West Auckland, Ethan's less worried about shoe space than just getting his shoe in the door. The bidding is off to a flying start, and Ethan is already struggling to keep his poker face. At 440,000, going in 10s. At 50. 50 there. 60 here. At 470,000, make it 80. Things are moving quickly, but with a top budget of $520,000, Ethan's still in the game. Yes? If only he'd start playing his hand. Welcome back to the bidding. 80 on... There's hardly any bystanders at this auction. Everyone here seems to mean business. < 95 at the front here. Round us to 500. Five. < And 500,000 right here. Sir, the bid's behind you at 510. I need you at 15. At 15 now, and 10 with the new man straight away. With the hammer starting to come down,... Once I call it at 515,000. ...a price of $515,000 is under Ethan's maximum budget, but only just. 515,000 right here. Holy moly and my heartbeat just going even faster. Everything just boom! Am I going to bid? Am I going to raise my hand? Last chance, folks. 520? At 520 new bidder. At the last moment, a new bidder enters the battle. My heart was just like sink. (LAUGHS) With someone else in the mix, Ethan knows the price could just keep going up. < 25, sir? < 525. First call at 525. < Second call at $525,000. Well, folks, at 525, we're below the vendor's instruction. Unbelievably, it's not even hit reserve! No. I'm going to pause the auction. I promise I won't keep you too long. Just seek an instruction from the vendor Whoa, that's crazy. 525 for the house in Massey. INDISTINCT CHATTER Are they wanting 600? No, I think they probably want 550. Yeah. OK. I probably wouldn't` I wouldn't pay. It's too much for in this area. The auction pauses to allow the vendor to negotiate with the highest bidder, as the others consider their options. The vendors are after 550. You've seen the amount of interest. There's five people bidding for it. So I'll reopen the auction, and you'll confirm your bid? Yep. Yep, OK, cool. Ladies and gents, there you go. Appreciate your patience. < We have some news. Highest bidder's increased their bid to $530,000. The instructions from the vendor are to sell the property if I see no better. Last chance, ladies and gents. I'm gonna sell it. I'll take a $2,000 bid at $530,000. Make it 532 or I sell. The price is already over Ethan's top dollar. Will auction pressure make him blow his budget? Whoa, it's just an extra 2,000. Ethan, you can do it. 532! Folks, fair warning, I'm gonna sell at $530,000. Third call, then. At 530, Chorley Ave is going, it is going,... (CLAPS) it is sold. Congratulations! I have done the numbers over and over again. 530 is far too high for a single income. Still looking on internet and see, you know, low CV, save up. Yeah. Another investor takes the cake again. Looks like Ethan needs a new game plan. Thanks for coming with me. Yeah. I can't do it by myself, you know. INTRIGUING MUSIC After losing out at auction, Ethan Tey has scaled down his expectations. After starting with the CBD, now he's thinking Ranui. OMG! 18km out of downtown, this financially struggling area is better known for its crime stats than its property portfolio. Surely here might be his chance to get in ahead of the circling investors. A classic 1950s weatherboard bungalow has caught Ethan's eye. It's close to the train station, features three bedrooms and one bathroom, and a CV of just $380,000. Look at that. Isn't that, you know, a piece of NZ history? It's walking distance to the train station, which is a bonus, but I actually checked ` from Ranui all the way to the CBD it still take you about 53 minutes. 15 stops. (LAUGHS) Will this home end up being Ethan's? It's not going to auction, which has to be a good thing. It's a beautiful house. Everything is done nicely. A lot of things still quite original ` the wallpaper, the polish ri` I think it's a rimu floor. Still got things that I can change it to the way that I like it, but the house ` look at that! Isn't it wonderful? Although the CV is low, Ethan's learnt the hard way that this is a market which goes beyond all the economists' wildest predictions. I'm going to put an offer in for 520. I think 520, you know, for a CV of 380 in Ranui, I think it's quite a good offer, and it's, like, I consider paying quite a lot, so, yeah, fingers crossed. I hope I'm going to get it. UPLIFTING MUSIC Down in Queenstown, Will and Grace have a different problem ` they've fallen in love with two houses and only have two weeks till auction. Will they chose the character cottage on Douglas St or the modern townhouse on Stewart St? Douglas St. Mm. What do you think? No, I was a big fan, yeah. I thought it was really nice. Douglas St is definitely the one that is top of the list. Potentially, I mean, the one also on Stewart St in Frankton. And we'd probably prefer two bedrooms` uh, three bedrooms over two, wouldn't we? Yep. > It seems three-bedroom cosy has trumped two with a view. My worry would be that that would go pretty quick. Like, I know it is going to auction and stuff but... Yeah, yeah. We need to probably start thinking about firm figures in our heads. Yeah. It's in a couple of weeks, isn't it? Or about 10 days from now, so we need to get the ball rolling... Scary. ...sharpish with that one. We want them to book a building inspector report. With the auction looming, some sleepless nights await Will and Grace. Back up in Auckland, Ethan is having a nervous wait of his own. He's offered his full $520,000 budget on the Ranui house, hoping it's blown any other interested parties out of the water. CELL PHONE RINGS Finally, he gets the call, but is it the one he hoped for? He say the house bought by someone else. Someone had a higher offer than me. And I ask him how much, and he said 580. 580 for Ranui! Hello, that's 200,000 above the CV. I just couldn't believe that. Ethan's missed out again. If he goes any further west, he'll end up back home in Malaysia. I just want to own a house, and it just seems impossible. It's a pattern being repeated again and again, especially in Auckland. I probably just slow down a little bit, because a lot of news in the paper, the government is going to do something. Probably they want to impose a capital-gain tax for people who's buying the investment property. I think that it could be a good thing to damper the market a little bit and helping the first-home buyer like myself. Definitely something has to be done, otherwise I don't think it's good for everyone. Ethan needs time to retire and lick his wounds, but he's hoping that someday he can be back in the hunt. Next time ` will a builder's report put a dent in Will and Grace's dream? Getting a high reading there. Definitely wet. Looks like a pile of bad stuff. And can Auckland duo Jess and Simon agree on a house? I don't think there's a lot of room for expansion, really. There's no yard. Right, so you don't like it, then? Not really. I think we need to maybe talk about it some more. BOTH LAUGH Copyright Able 2015