Someone paid nearly $1 million for this renovation nightmare

 

A house in the Queensland suburb of Kedron sold for nearly $1 million last month, but it could be beyond repair.

The property (complete with two bedrooms, one bathroom and no car park) was sold by the Public Trustee, and the deterioration of the house indicates that it may have belonged to a deceased estate.

Many investors look to Public Trustee auctions for a great deal, so you could be forgiven for raising an eyebrow when this house sold for $976,000 – almost $300,000 above the median house price for Kedron.

That is, until you realise that 22 Gail Street is actually set across two 405 square-metre lots and located just eight kilometres from Brisbane CBD.

When there’s an opportunity to subdivide a property and sell off multiple dwellings or plots, the value instantly increases. Especially if demolition of the existing property looks like it might one day be carried out by a stiff breeze.

The description for the property on realestate.com.au contains only a halfhearted attempt to position it as a renovation opportunity, suggesting ways that the property could be improved before stating that “the greatest worth may be to investigate with the local council authorities the ability to redevelop the site utilising the dual lots”.

The listing also recommends any prospective buyers get a head start on their due diligence, so one can only hope those who signed the papers had the go-ahead.

Close to Padua College, Kedron Primary and Stafford City Shopping Centre, and within easy reach of public transport, the Kedron location is ideal.

The new owners will have to check for any use of asbestos, given that the construction of the building occurred circa 1920. However, if none is present, the timber framework, pine floors and VJ interior are already leaning precariously, and might be easily knocked down with a well-placed kick.

Would you attempt a renovation for this property, or would you start phoning demolition companies?

Want to find out how much your House is Worth in the Current Market??  Talk to the guys at Madeleine Hicks Real Estate Ph (07) 3355 6845

2 replies
  1. Wendy Stephenson
    Wendy Stephenson says:

    After living in Kedron until I was 24 I find the price paid for this house is astounding. Kedron Primary school is the other side of Gympie road. Would you let your children go to that school, without driving them?. Stafford is a bit far to walk to. The ceiling of the area shown in one of the photos is definitely asbestos however the rest should all be tongue & Grove. I know a few similar houses and having lived in one they do up very well.. The paint probably contains led. The posts are leaning.Time to knock it down and start again. Estimated cost of repairs upward of $500.000. Would you get your money back? No, I don’t think so.
    Wendy Stephenson.

    Reply

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