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31 George St, Redfern will go to auction later this month.
Crumbling homes requiring expensive repairs have become hot property as booming house prices drive a renovation frenzy.
Agents are reporting homes unfit for living in have been attracting up to 150 buyers at open for inspections and the prices have been skyrocketing – often well over better condition homes.
The popularity of the houses has been buoyed by a perception that house prices will keep climbing, allowing renovators to recoup the costs of expensive repairs and make a capital gain on the property.
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Stone Real Estate agent Eddy Piddington, who is selling a dilapidated house in Many Vale, said the increased popularity of fixer upper homes was a symptom of the current housing shortage.
129 Cardigan St, Stanmore goes to auction later this month.
“There is a large segment of buyers who want freestanding houses but it is hard because prices are high and the stock is extremely low,” he said.
“There are also people who have fallen in love with the idea of renovating. They watch reality TV and get a false idea of what it is like, so they are encouraged.”
Adrian William director Adrian Tsavalas is taking a “renovator’s delight” to auction in Marrickville today and said lines at the open for inspections snaked down the street.
The demand has been so strong that the vendors increased the price guide for the Harney St house from $1.2 million to $1.3 million and again to $1.4 million.
Close to 250 buyer groups inspected a renovator’s delight in Marrickville.
“There just aren’t many homes like this and a lot of people want them,” Mr Tsavalas said, adding that nearly 250 buyers had inspected the home. Most homes attract about 20-40 inspections.
Home seekers have also been streaming through the doors of a dishevelled Redfern terrace left vacant since the late 1980s.
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This was despite a collapsed staircase, rusted interior and a second floor considered too dangerous to occupy. No guide has been released but the house is expected to sell for nearly $1 million.
31 George St, Redfern is expected to sell for around $1 million.
Selling agent Mark Foy of Belle Property said the George St terrace, which would require at least $800,000 in repairs, was attracting “heaps” of inquiry, which was typical for this kind of property.
“In the current market, buyers want something that’s either beautifully renovated or a complete blank canvas where they can start from scratch. The properties in the middle often get overlooked,” Mr Foy said.
18 Chandos St, Manly Vale is for sale at $1.3 million.
Fixer upper homes were more attractive for some buyers because they saw rapidly increasing house prices as an opportunity spend more on the renovation without overcapitalising, Mr Foy said.
CoreLogic data published earlier this week showed prices for freestanding Sydney houses increased by an average of 2.7 per cent, or about $27,500, over the past three months.