Derelict homes worth millions

April 30th, 2013

A former boarding house at 64 Mullens Street Balmain, originally listed with a guide of $900,000 attracted a swarm of interested buyers. It looked like a scene out of Mad Max – gates rusted off their hinges, graffiti covered walls and advanced stages of concrete cancer could be seen. With wrecked carpets and cracked walls it seemed that most people wouldn’t live there if they were paid – and yet it sold $1.4 million.

“They had to pick me up from the floor,” said selling agent Elizabeth Casamento of Raine & Horne Montano.

As any good buyer knows, location is all that matters in Sydney. There may be a monstrous property for sale, but the land beneath it is golden.

Marketed as a block of five flats, despite several of the bedrooms sharing doors, the property’s numbers actually looked pretty attractive.

Balmain has a median unit price of $720,000, according to RP Data, so an extensive renovation of the 252sqm block could push the value past the $3 million mark.

At 26 St, Erskineville, a three-bedroom terrace stands about as steadily as a house of cards.

“This one is a lot of work,” said Braden Walters of True Property.

Mr Walters has interest ranging between $500,000 and $600,000 for the property, which he believes would be worth around $950,000 after a $150,000 renovation.