At a time when Australian renters are facing unprecedented pressures and the housing market grapples with a severe shortage, one audacious investor is challenging conventional wisdom by turning a profit from properties most buyers wouldn’t touch with a ten-foot pole: termite-riddled homes.
Charles Corby, a seasoned investor specialising in refurbishing derelict properties, has just purchased four such properties, and now plans to cast his net wider across Australia, all in a bid to return more rental properties to the market.
Realestate.com.au data shows a number of budget-friendly, termite-infested homes are currently for sale across Australia, including five in Victoria, five in Queensland, three in New South Wales, and two in South Australia.
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“I’ve just taken on four termite-affected properties across regional areas – Grenfell, Darlington Point, Moree and Newborough,” Mr Corby reveals.
“I picked them all up at land value and I’m expecting to turn a solid profit on each.
“It sounds insane, but what’s interesting is that termite-affected homes are often written off entirely by buyers. Most people hear ‘termite’ and immediately walk away.”
Plasterboard is being pulled off one of Mr Corby’s properties to check for termites. Source: Supplied
Termites have eaten away the doorframe inside an investment property in Newborough. Source: Supplied
The common perception is that termite infestations spell disaster, leading to widespread structural damage and astronomical repair bills.
However, Mr Corby argues this is often a misconception.
“In reality, termite damage is usually localised and treatable, rather than widespread or structural,” he explains.
“In many Australian homes, particularly brick builds, the structural integrity remains largely intact. Once you identify the damage, you isolate it, treat it, repair it, and you’re good to go.”
He cites a project in Grenfell, where he purchased a termite-affected property from the NSW Department of Housing for just $161,000 at land value.
“I was quoted around $20,000 to $30,000 to remediate the localised termite damage,” he states.
“Once repaired, similar homes in the area are selling for around $250,000, and because of the low purchase price I am able to keep this as a rental property at $250 per week.”
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Damage from termites in specific pieces of timber in a home in Darlington Point, NSW. Source: Supplied
Property investor Charles Corby is looking to capitalise on termite-riddled homes.
Another success story comes from Darlington Point, regional NSW, where a property acquired for $172,000 required approximately $40,000 in renovations.
Upon completion, it’s expected to sell or be revalued at around $335,000, yielding an estimated profit of $88,800 after all costs.
“I did the same on a place on Tycannah Street in Moree – another property most buyers wouldn’t go near,” he adds.
Expert insights: Repairable, but proceed with caution
Seasoned builder Dylan Gorniakowski corroborates Mr Corby’s view on the repairability of most termite-infested homes, though he stresses the importance of professional pest inspections to check for active termites and existing damage.
“As for being too far gone I’m yet to see one myself but I would say it depends on the location of the damage, for example, roof structure, subfloor and other load bearing members,” he says.
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Builder Dylan Gorniakowski. Source: Supplied
Other than some termite damage, one of Mr Corby’s investments is completely and ready for a quick reno. Source: Supplied
Mr Gorniakowski also warns that active termites are not a DIY problem, requiring professional treatment, often involving baiting systems that can take weeks or months to eliminate a colony, followed by chemical soil barriers for long-term protection.
Real estate agent Max Hardwick of Buxton Real Estate, who has facilitated the sale of numerous termite-affected properties, notes that the presence of termites is often discovered during building and pest inspections rather than being known by the seller.
“In terms of pricing, it really depends on the extent of the damage and the type of buyer,” Mr Hardwick says.
“If the home is being purchased as a knockdown, the impact is often minimal. However, for buyers looking to live in or renovate the property, there can be a perceived risk, which may lead to some level of negotiation. Generally, any damage may already reflect the price point quoted or sold.”
Despite his successes, Mr Corby offers a stern warning: this strategy is not for beginners. “You need proper building and pest inspections, a clear handle on repair costs, and the right team around you. If you get it wrong, it can blow out quickly,” he cautions.
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