Its ceilings are starting to cave in and a once white floor has turned black, but the owner of this dilapidated terrace in inner-city Sydney has hit the jackpot with a profit far larger than what they paid for the property 15 years ago.

The mould riddled house with grime-caked floors and a hole in the kitchen ceiling sold at auction on Saturday for $1,365,000 despite being in major need of renovation.

This was more than double what the vendor paid in 2007 and 30 per cent more than the highest offer made prior to auction.

192 Crown St, Darlinghurst sold for $1.365m.

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The two bedroom terrace in Darlinghurst went to auction with a guide of $1m before being sold for $1,365,000 after an all out battle between two active bidders.

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The “renovator’s delight” with DA approval for a three storey dwelling was listed for sale through Ray White Touma Group after the seller abandoned their plan to renovate and extend.

Photos from the listing show extensive water damage and mould on the walls of the living room and cream coloured tiles that had turned black with grime in many parts of the house.

These tiles are actually cream-coloured …

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… and there used to be balusters on the stairs.

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Exposed timber beams can be seen through a hole in the kitchen ceiling while a section of the bathroom ceiling appears to be caving in.

Selling agent Charles Touma said the successful buyer was a young professional from Sydney’s north.

“The winning bidder and his family have some history in renovating and were wanting to get their foot in the door at Darlinghurst,” he said.

A hole can be seen in the ceiling next to the light.

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The bathroom ceiling appears to be caving in.

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Mould and water damage are major features throughout.

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Records show the property last transacted in 2007 for $570,000, meaning the vendor earned a $795,000 profit – or $53,000 a year over 15 years – just by holding onto the house.

The underbidder was local investor, with both of the active bidders attracted to the terrace’s position on Crown St near the iconic Stanley Street and Oxford Streets and Hyde Park.

The terrace has loads of potential …

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… and its location is a major drawcard.

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One day it may look like this …

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An artist’s impression of the DA approved plan shows an open-plan kitchen and living area with feature stairs and exposed timber beams on the ground floor, and two bedrooms on the second storey. A third attic floor bedroom has a rear balcony.

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