Homes with gaping holes in the roof, smashed walls, or peeling paint may not be appealing to some, but other buyers are not deterred.
Fixer-uppers are attracting interest despite a long wait for builders and an increase in costs for supplies since the COVID home-building boom.
Housing Industry Association chief economist Tim Reardon said the challenges for keen home renovators are likely to linger this year, though the problem could ease over the next 12 months.
“The demand for skilled trades eased marginally in the December quarter with the return of overseas migration,” Reardon said.
“And the rise in [interest rates] means the number of new builds will slow in 2024, but given the large amount of storm damage and elevated renovation levels, the demand for skilled trades will remain strong throughout this year.”
In regional Victoria, a former rental home has hit the market at 7 Dove Place, Mildura.
The four-bedroom home has holes in the walls and damage to the kitchen as it has been vandalised since the tenants moved out.
The home has a super cheap price guide of $182,000 to $200,000. Mildura’s median house price is $374,000.
Elders Real Estate Mildura Lukas Pedder said the vendors had bought the property intending to renovate it, but have found another fixer-upper project they want to tackle.
“We predominantly see investors who want to fix up and rent out these types of properties, or flippers,” he said.
Buyers have been out in force looking at a two-bedroom beachside apartment in the Golden Mile of the seaside Melbourne suburb of Elwood.
The apartment at 11/45 Ormond Esplanade has been a drawcard for buyers looking for a bargain, Belle Property St Kilda’s Kyle Spinks said. That was despite cracks in the walls – it needs a major renovation.
The mid-century property is asking $650,000 to $700,000, while Elwood’s median unit price is $725,000 on Domain data.
Spinks said buyers were keen, despite the work involved, as the apartment was so close to the ocean.
“It’s so popular because it’s on the top floor, and it also has these really high ceilings which make it feel like a house,” Spinks said. “People say it has this very charismatic feel when they walk in.”
One of the most expensive fixer-uppers on the market is in Ultimo, in Sydney’s inner suburbs, where a dilapidated two-bedroom Victorian terrace has been listed with a guide of $1 million to $1.1 million.
The home at 165 Jones Street, is completely unlivable, according to its marketing, with photos revealing a gaping hole in the roof, rotting floors, peeling paint work and a backyard with an overgrown garden.
Belle Property Surry Hills’ Blair Cardile said the top floor of the two-storey terrace can’t be accessed due to safety concerns.
Cardile said buyers haven’t been put off by the mammoth task ahead, with professional builders and other renovators interested. The property will go to auction on April 1.
“We’ve had a pretty good response to it,” he said. “We’ve had two open houses so far and there have been double-digit inspection numbers both times.”
Another three-bedroom house in need of some serious TLC is for sale at 51 John Street, Granville, about 30 minutes west of the Sydney CBD.
The home is advertised with an $850,000 guide and has been referred to as the “ideal fixer upper.”
It was a similar story about an hour-and-a-half from Sydney, where a former holiday home/weekender in need of some love is up for sale in Blackheath, close to Katoomba.
The home, at 36 Shipley Road was originally built in the 1970s, and has not been changed since, selling agent Ray White Blackheath’s Katrina Allport said.
“Up here, people still do renovate properties, so the majority of the market is looking to put in work and do it up,” Allport said. While there is no price guide listed on the property, Blackheath’s median house price is $805,000.
Selling agent Ray White Annerley’s Bevin Powell said the property was being sold as part of a deceased estate. He said the property was representative of those that older generations had bought to live in for the long term.
“They didn’t really transact every seven to 10 years,” Powell said. The property will go to auction on March 25.
While there is no guide, Coopers Plains has a median house price of $720,000.
A three-bedroom home in need of some work in Rockingham, about 45 minutes from Perth’s CBD, has proven popular with buyers.
That’s because the home at 55B Harrison Street is just a two-minute walk from the beach, Harcourt Rockingham’s Graeme Garwood said.
Though it’s not in bad repair, the outside of the home needed some love. The property has been advertised asking for offers from $455,000.
“It’s already had a couple of offers,” Garwood said.
Article source: Queensland Property Investor