‘Lost the plot': Insane price of dilapidated Sydney house
A dilapidated two-bedroom terrace in Sydney's inner-city has hit the market for a staggering $1.4 million – and it's raising more than a few eyebrows.
The Erskineville property, which comes complete with 'peeling paint, crumbling brickwork, and an overhead flight path,' according to Domain, is being marketed with a straight face – and somehow, a straight price tag.
The 1870s 'cottage' is said to be one-of-a-kind and holds status as one of the last remaining original Victorian terraces in the suburb.
It features a rusty tin tub in the backyard with a single cold water tap that offers 'a back-to-nature bathing experience.'
Whether this feels charming or more like an at-home haunted house experience, there's no doubt the property is in need of some major structural therapy.
The 153 sqm property boasts the 'opportunity to build a statement home' with development approval granted to transform the terrace into a three-bedroom, two-bathroom family house.
Aussie landlord Jack Henderson told news.com.au that Sydney has become 'a city for the rich.'
'It's the New York of Australia, for the average young person its too expensive,' he said.
The 28-year-old runs popular buyers agency Henderson Advocacy, and has amassed a $40 million dollar property empire, securing 15 investment properties.
Mr Henderson believes the Erskineville property is going to be a 'very big auction.'
'It will undoubtedly go for higher. My guess is around $1.6 – 1.7 million.'
The property mogul has previously divided opinions after advising Sydneysiders need to 'Be rich or don't live here.'
'If you're not rich live somewhere else. Australia's a big f**king country,' he said.
'It's a great opportunity'
Residential sales expert Cameron Airlie told news.com.au that despite the dilapidation, the home provided great 'opportunity for someone who has an appetite for renovation.'
'The land-size is small. It's not a huge property, and would likely cost someone close to $1 million to renovate it,' he added.
'However, despite sounding expensive, it is affordable. Terraces and semis around the area are going for two to three million dollars,' Mr Airlie said.
The median property prices in the small inner-west suburb over the last year have ranged from $1,899,000 for houses to $1,100,000 for units.
Last year, a first-home buyer sent shockwaves through the small suburb after securing a four-bedroom cottage for $3.22 million – five fold its last sale.
So who is actually showing up to these auctions?
Mr Airlie believes the demographic is broad and could range from developers looking to flip it, young couples and families trying to get into land, or even people looking to get out of strata.
'The older generation are mainly going for penthouses or downsizers whereas we're seeing a lot more of younger people getting help from the bank of mum and dad when it comes to getting a foot in the door,' he said.
Naturally, social media had more than a few things to say about it.
'Sydney has lost the plot,' said one.
'I hate this city,' said another.
'Needs another two million to make it liveable,' said a third.
However, others were more than impressed with the narrow terrace, branding it an 'absolute steal.'
'Imagine how nice it will be once it's restored,' said one viewer.
'will be beautiful if renovated,' chimed another.
'After a renovation it'll be worth $6 million,' speculated a third.
The home is set to go auction on 21 June.
Whether it fetches more than the $1.4 million guide remains to be seen – but one thing's clear: Sydney's property prices aren't peeling back anytime soon.
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Seven buyers who signed contracts for the lots at the auction have since reneged on their offers, forfeiting the deposits. In those cases, the council has negotiated with the adjoining landholder to buy the property through a private sale. But the bungled auction process has raised eyebrows among key stakeholders, including QPRC councillor Mareeta Grundy. "At the auction, the frenzied bidding that went on was so astounding to me that I did write to the general manager expressing my concerns about the auction and the bidding wars that went on," Ms Grundy said. "I've asked for an investigation and a review of proceedings on that day." She said the council needed to establish the identities and motivations of those bidding. "What transpires from here, it must pass the test of accountability and transparency," Ms Grundy said. Peter Marshall backed her calls for an investigation, particularly into the group of people who bid on most of the properties. 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