From derelict to downright dangerous, some desolate dumps have turned heads on the Sydney market this year, with their sale prices being just as shocking as their conditions.
Despite these homes being abandoned and unlivable, their sales all exceeded their price guides by significant margins.
Renovation expert Cherie Barber said the biggest appeal for buyers of derelict homes was
“opportunity”.
“The opportunity to get into a location they really want to be in, especially if it’s atightly held suburb,” she said.
“And, the opportunity to add value to the property and therefore a big chunk of profit that
increases your net wealth fast.”
Renovation expert Cherie Barber says flipping derelict homes has been popular for the last 30 years. Picture: Supplied.
Ms Barber said while derelict homes come with their challenges, the positives often outweigh the negatives, “but only if the renovation is executed well”.
She added that buying run down properties has been very popular for the last 30 years and that trend won’t stop.
“As renovated and turnkey homes continue to become financially out of reach for most people, buyers are forced to become more strategic with their finances,” she said.
“People are also more educated these days, knowing the financial and lifestyle benefits a well-planned strategic renovation can deliver.”
Some of the most expensive downtrodden homes to sell in Sydney this year prove this, with buyers willing to pay hundreds of thousands of dollars above guide to secure them.
HUNTERS HILL
The dilapidated home at 9 Earl Street, Hunters Hill sold for $4.925m.
Its floorplan includes a ‘dilapidated structure’ pictured on the right.
Even with major overgrowth, old and cracking interior paint and a stained bathtub, 9 Earl St in Hunters Hill sold for over $300,000 above the suburb’s median house price.
The home turned heads when it was listed at $4.2m, a price which it ended up blowing out of the water when it sold for a staggering $4.925m in September.
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Inside, boxes and old furniture are scattered around.
The bathroom has seen better days.
Selling agent Nicholas McEvoy of Bresic Whitney Hunters Hill told The Daily Telegraph in August that the three-bedroom, one-bathroom home was “in very poor condition” and would require “extensive renovation to be considered liveable”.
There is even a section of the property — which appears to be an abandoned shed — that is listed on the floor plan as a “dilapidated structure”.
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BRONTE
Bronte’s 41 Palmerston Ave sold for $3.835m at auction. Picture: Jeremy Piper.
Another of the most expensive downtrodden home sales in Sydney came late in the year, with the $3.835m sale of 41 Palmerston Ave, Bronte, in November.
Auctioneer James Hayashi of Ray White Eastern Beaches said at the time it was “probably the worst condition house [he has] ever auctioned”.
Twenty years of vacancy and decades of water damage had left the home completely broken down.
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Water damage has left the ceiling collapsed in the kitchen. Picture: Jeremy Piper.
The home was vacant for 20 years. Picture: Jeremy Piper.
With hardly any ceiling left in the kitchen and a bathroom where mould goes to die, it is a wonder the home sold for $835,000 over reserve.
According to Mr Hayashi, run down homes for the right buyer can actually sell for more than you would think.
“With properties that are run down or need a lot of work or they’re in original condition, I find they typically sell comparatively higher to those that are fully done,” he said.
“You get buyers coming in and using their imagination and they might have some sort of building background or connection where they can do the work themselves or they can save some money on the renovations and works that way.
“So, they’ll pay a little bit more on the purchase price that can make it up on the renovation and works.”
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According to some experts, some buyers will pay more for a derelict home that they can knock down. Picture: Jeremy Piper.
The sales price of some derelict homes, Mr Hayashi said, “goes down to just how strong the Sydney property market is”.
According to REINSW chief executive officer Tim McKibbin, it all comes down to the purchaser.
“The property may be worth more to the neighbour of the property than to others in the market,” he said.
“It is very common for purchasers to buy a property and knock the house down and build what they want,” Mr McKibbin added.
“In these circumstances, there is clearly no need to inspect the home.”
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PADDINGTON
From the outside, 40 Liverpool St, Paddington appears a charming inner-city terrace.
Inside, it is a different story. Picture: Julian Andrews.
An inspection may not have even been safe at 40 Liverpool Street, Paddington, which sold for $2.8m back in March.
The home had been cordoned off with hazard tape like a crime scene, with crumbling plaster throughout and even some old dishes and cutlery stacked in the corner of one room.
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The property has become a dump, having been left vacant for 15 years. Picture: Julian Andrews.
Dishes have been left out for a decade and a half. Picture: Julian Andrews.
Despite being vacant for 15 years, it also exceeded expectations on the market, selling for $800,000 above its initial $2m price guide.
Selling agent Georgia Cleary of McGrath, who had been in real estate in Paddington for 35 years, told The Daily Telegraph it was “probably the worst” home she had ever seen in the suburb.
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BONDI JUNCTION
170 Birrell Street, Bondi Junction was put up for sale with expectations of $2.2m.
A similar terrace home in Bondi Junction also smashed its price guide despite leaving a lot to be desired in its appearance.
Crumbling plaster, rocky floorboards and torn up tiles would not stop 170 Birrell Street from selling for $2.72m, a price $520,000 over reserve.
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Despite its horrendous condition, it sold for $2.72m.
The outdoor area is not one for hosting the family Christmas.
At the home’s auction, interested buyers were told to “enter at their own risk”.
It was purchased by a local carpenter, who reportedly planned on flipping and selling the home.
WOOLAHRA
This Woolahra home could use a little landscaping. Picture: Thomas Lisson.
In February, a dilapidated hoarder house in Woolahra sold well beyond expectations, claiming $600,000 above its $1.85m reserve.
The Rush St home was sold as a deceased estate, which belonged to a former crocodile hunter.
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14 Rush St claimed $2.45m at auction in February.
The home’s bathroom. Thomas Lisson.
According to the selling agents, the home was so full of “feral” junk that it took two weeks and cost around $30,000 to clear out.
With an overgrown yard, torn up plaster and a faded pink toilet and sink, there are some real horror film vibes about this one.
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