How to spot a house with potential
Today’s prices may make buying centrally seem impossible. While the three Ps in real estate stand for position, position, position, for the first homebuyer, it should also mean potential, potential, potential. But how do you know if it's got potential or it's just a dump? The key is to look at the suburb's median and see where the asking price fits on the spectrum. Places that need work can be a steal.
Check out these inner city homes needing some lovin’. Perhaps you’ll snare a bargain and a never-ending DIY project to boot. Although these figures might be daunting, you could come out way in front after a reno.
16 Napier Street, Fitzroy
Price guide, $1.2 million+ (Fitzroy median house price, $1.62 million)
Don’t baulk at the price until you’ve noted the stellar address and the original façade on this rare gem. While that is more than double the $600,000 first homebuyer incentive cap in Victoria and New South Wales, it’s hundreds of thousands less than homes half the size in the same suburb. With striking colours on every wall, it needs some love but is one of a kind.
The kitchen would need some serious work and the wall colours aren't for everyone, but you’d be within a stone’s throw from the best tight-arse Tuesday pub deals in town.
126 Albert Street, Port Melbourne
Price guide: $1.55 million+ (Port Melbourne median house price, $1.5 million)
It’s Port Melbourne, it’s a three-bedroom Victorian, it’s… full of someone else’s stuff. But don't let the junk fool you. Polished versions of this place will easily pull $2 million plus.
First tip for selling your home is to clear the clutter and the personality. These rebels ignored the memo, but the lack of window dressing doesn’t mean you can’t peel back a few layers and see the home behind the seahorse windchime at the front door.
9-11 Little Provst Street, North Melbourne
Price guide: $720,000+ (North Melbourne media house price: $1.47 million)
Remember the Qantas and Ansett mystery flights your folks took in the 90s? This is the real estate bargain equivalent. The floorplan suggests two bedrooms and a fair storage space, but the advertising photography shows a shabby exterior and a tram coasting past the North Melbourne Town Hall. Sale price according to the internet is half the suburb's median, so it’s well worth showing up to an open house to see behind the front door for yourself.
46 Ada Place, Ultimo, Sydney
Price guide: circa $2 million (Ultimo median $1.5 million)
One of the fastest suburbs to grow during Sydney’s property boom, Ultimo is now hotly contested. Two side-by-side terraces in Sydney’s heart are rare - two which don’t require selling arms and limbs even rarer. With a suburb median of $1.5 million, you're getting two for less than the price of one here.
All up, you’d be looking at renovating eight bedrooms and four bathrooms, which may make you cry like a Block contestant, but imagine the flipping potential.
113 Kate Street, Indooroopilly, Queensland
Price guide: $585,000+ (Indooroopilly median house price, $918,000)
A home which reminds us of a big coastal property a few families would share over a long and sunny summer - complete with massive living areas and wooden paneling in the kitchen and up and downstairs patios. It needs some work, but even with a refurb you'll still get it for less than the suburb's median. There's a massive backyard, which dwarfs an old-school hills hoist, with enough space for backyard cricket and an over-sized veggie patch.