Are You Brave Enough to Buy The Worst House?
Thinking of buying the worst house in the best street in Brisbane? You must read this before buying!
Looking for the worst house in the best street is a bit of a real estate cliché, but if you’re keen on an affordable investment opportunity it can be worth keeping this old adage in mind.
Buying an older home in a great street, with a view to renovating, can certainly be one way to bag a bargain. A nice tidy profit may be on the horizon after a lick of paint, a new lawn or a kitchen makeover.
On the other hand, some might say the real winners are the sellers, who haven’t upgraded their home in years but are still able to sell to willing buyers, like you! In the worst cases, run down shacks may do little but put you at risk of over capitalising, no matter how good the street is.
Here are some of the very worst houses in the very best streets in Brisbane to serve as both warning and inspiration.
Detonator’s delight
Forget about booking the building or pest inspection with this New Farm property on Heal Street. It was listed as a one bedroom house when it went on the market – but you’d have to be seriously interested in open plan living! Unliveable, leaking and covered in graffiti, this detonator and demolisher’s delight sold pretty much for its land value at $800,000 in 2015.
(Image credit: Ray White Real Estate, New Farm )
Around the same time you could have bought a liveable if slightly outdated two bedroom house up the road for $845,000. Just a little bit further along, another three bedroom renovator’s delight sold for $1,170,000 in early 2016. It goes to show that there’s a huge variation in what counts as a ‘bargain’ in these high demand inner city suburbs. Land value is everything, so make that a higher priority than the state of the house.
Trendy Newmarket
This worst house on the best street in trendy Newmarket sold for the cool sum of $1.275 million in 2015. Estimated to sell in the mid to late $800,000 range and with the median house price in Newmarket $797,500, the new owners must have big ambitions – and be pretty handy with power tools and a paint brush.
(Image credit: news.com.au )
Blair Witch Project
Looking a little like the neighbourhood haunted house, this 1880s home in original condition sold in Teneriffe for $1.155 million. The couple who bought this old coach house building had rushed from a wedding to become the winning bidders. They now have something old and something new! Let’s hope the renovations don’t leave them blue.
(Image credit: domain.com.au)
With an average three bedroom house in Teneriffe selling for $1.355 million they clearly did some homework before auction day and didn’t let wedding champagne go to their heads. This property will no doubt retain its land value, though renovations on a property of this age can be impeded by council regulations.
Hopefully the new owners also booked an exorcist while booking their building and pest inspection.
Worst house in Australia
This one made the UK tabloids where it was dubbed the “Worst House in Australia” by the Daily Mail. It sold in Dutton Park for $668,000 in 2015; $168,000 above reserve. The median house price in Dutton Park is $852,750 making this fixer-upper a bargain for a keen renovator or developer. Renovations would not be easy, however, especially considering the internal supports were so worn and crumbling that you needed a Worksafe card and hard hat to even enter the building.
(Image credit: news.com.au )
If the new owners plan on demolishing and rebuilding they’re going to need some serious patience. Council planning will be time consuming and potentially expensive, as will the necessary structural engineer’s report. Any Brisbane house built before 1946 requires a report testifying to its dire condition if you’re planning to detonate. You also need to have superb hoop jumping skills to obtain formal permission from all relevant local authorities.
Bagging a bargain
Owned by the same family since it was built in 1948, this two bedroom property on Malcolm Street in Hawthorne sold for $820,000, just a little less than the suburb’s average price for a three bedroom house at $837,500.
(Image credit: Homely.com.au )
Hopefully the new owners found a creative architect to convert this exhausted, worst house in the best street into four bedrooms with a nice new kitchen and bathroom into the deal. The average price for a four bedroom house in the area at the time was $1.225 million, making it well worth the investment into an extension.
Meanwhile, marketed as the worst house in the best street in the Brisbane suburb of Tarragindi, this three bedroom house doesn’t look too bad from the outside.
(Image credit: Realestate.com.au)
Step inside and you’ll need your best creative visualisation skills to see the potential beyond the British Racing Green paint job done by a 5 year old in this very vintage kitchen.
(Image credit: Realestate.com.au)
But the new owners bagged themselves a serious bargain with this worst house, picking it up for $440,000, well below the areas average price of $666,500 at the time. As long as the building inspection report didn’t reveal any expensive termite damage or major structural problems, they would’ve had plenty of change left over for a splash of paint and a new kitchen.
Hinterland horror
If you’re planning on relocating from Brisbane to the lush green hinterland of the Sunshine Coast you can still find a labour of love to throw money at. This worst house in the best street of Maleny, just minutes from the local primary school, swimming pool and general store, had an asking price of $350,000; that was $145,000 below the area’s average house price at the time.
(Image credit: Sunshinecoastdaily.com.au
If you’re planning on living in this Maleny house while renovating, you might want to seriously consider a tent and portable shower in the back yard! Bathing in a bucket might be preferable, at least until the bathroom and kitchen are brought up to the health and hygiene standards of the current century.
(Image credit: Sunshinecoastdaily.com.au)
(Image credit: Sunshinecoastdaily.com.au)
Ask the experts
If you are seriously considering investing your hard earned money into the worst house on the best street, you’ll save yourself a lot of headaches by hiring a good property inspector. A thorough inspection for pest and structural damage before you sign on the dotted line means peace of mind while you plan your next steps.
Some points to consider and questions to ask if you’re considering purchasing the worst house on the best street include:
- Why is it the worst house? Is it architecturally sound?
- Is the property in need of a quick cosmetic makeover or more serious renovations and repairs?
- Are there any problems with the property that can’t be fixed?
- Are there any potentially costly heritage or preservation restrictions on the building?
- Will any improvements or renovations be cost effective, or will I overcapitalise on renovations and never recoup the costs when selling?
- Can you live in the house while renovating?
Will your worst house in the best street in Brisbane be purely an investment property? If so, it’s worth considering just how long the renovations are realistically likely to take. Time spent renovating will cost you twice over for every week the property has no tenants. If in doubt, call in the experts to ensure your worst house is the best potential investment.