An aging three-bedroom home in Sydney’s inner west has sold for $5.4 million, almost double the suburb’s median house price and $900,000 more then expected.
The modest single-story bungalow on Poolman Street in Abbotsford was purchased by a developer who plans to knock it down and build duplexes on the 690 square-metre block.
Described as “ripe for a complete transformation or rebuild” in its listing, the home has no water views, a dated interior, a single bathroom and a plain backyard, while aerial photos show a rusting roof and shed.
But 10 parties registered to bid at the auction on Saturday and the home sold for almost a million dollars above the reserve.
Selling agent Joe Kanaan of The Agency told Realestate.com.au the auction “just went crazy”.
“Our vendor was over the moon. It was an emotional sale for him because it was his parents’ home … it just went so much higher than we expected,” he said.
The home last sold for £6,000 in 1965 – making the sale price 450 times higher than 60 years ago since the pound was worth $2 when Australia changed currencies the following year.
Abbotsford’s median three bedroom house price is $2,815,000 according to Domain, while Sydney’s is $1,464,000.
The Sydney median means that even with a 20% deposit of $292,000 a buyer would need an income of at least $285,000 a year (more than double the average) assuming a 30-year loan, an interest rate of 6.15%, and spending only 30% of income on housing in order to avoid mortgage stress.
To afford the Abbotsford home, a buyer would need an income of $1.05 million a year.
Header image credit: The Agency.
