Renovation versus rebuilding: Buyers clear out damaged homes to save money – realestate.com.au

Homebuyers are showing they aren’t afraid to roll up their sleeves and clear out South Australia’s most unwanted properties, with renovating potentially more cost-effective than detonating and starting over.

Selling agents say eager renovators are among the group inquiring about some of the state’s worst eyesores, including a home in Oaklands Park that is currently uninhabitable and not safe for interior inspection.

Collapsed ceilings, loose wiring and copper pipes had not deterred strong buyer interest in 24 Albany Cres, according to Scott McKenzie, managing director of McKenzie Property Co, who said the three-bedroom house is “still good bare bones”.

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The Oaklands Park house at 24 Albany Cres is in an ideal location and position.

Some work is needed, especially on the ceilings.

In one room the ceiling has completely collapsed.

“I’m not a builder, but you’d probably need well over $150,000 to bring it back to life, and that’s not a lot,” Mr. McKenzie said.

“It would require a new bathroom (and) new wiring.

“Obviously what you find with these homes just increases the cost, but I think you need $100,000 to $150,000 to make it livable again.

“For people who want to renovate, the bare bones are there so they can come in and do the inside the way they want and keep the construction price low (compared to the cost of new construction).”

Mr McKenzie said the property was vandalized by thieves when the owner, who had lived in the house for about 40 years, moved away for a while due to ill health.

He said the worst damage was in one of the bedrooms, where the ceiling was

“barely stuck,” presumably due to someone “pushing it down or falling through” while stealing the copper pipes.

The owner did not have the money to repair the damage and had therefore made the sad decision to sell, Mr McKenzie said.

The property will go under the hammer on March 20.

No price guide was released, but Mr. McKenzie said recent comparable home sales and listings have been in the high $700,000s to low $800,000s, making renovations still relatively affordable.

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The Mount Gambier Estate at 79 Sturt St is picturesque from the outside.

However, it needs some TLC inside…

The bathroom is just one of many rooms that need some work.

“If you look at what’s selling in the area, it’s hard to find a house in such a location these days – on a large block and a corner lot – for less than $900,000, so… what you put in today will certainly serve you well for years to come,” he said.

In Mount Gambier, a ruined two-bedroom home known to locals for its checkered history also attracted potential renovators willing to look past the extensive damage and imagine a beautiful home, said Patrick Nhim, director of Adelaide Property Network.

“Anyone who is handy with the tools could do a good job of fixing the house,” he said.

“It can be saved if they can save on (repair) costs (by doing the work themselves).”

Mr Nhim declined to provide details of the history of 79 Sturt St, other than to confirm there had been “squatters in the property at one time and there was some drug paraphernalia”.

“The sellers are not local. It’s a situation where it needs to be sold and the sellers are just walking away from it,” he said.

“It presents a great opportunity for buyers who are willing to put in some work.”

Mr Nhim estimated the house could be refurbished for about $200,000.

A price guide for the property will not be released until auction day on March 4.

“If you built a brand new house it would cost you about $500,000,” Mr Nhim said.

“If you’re smart I think you could spend a bit of money fixing up (the house) and create an allotment garden (behind the house) and it could do quite well.”

Another dilapidated house, at 1650 Lobethal Rd, Lenswood, is also on the market and listed as perfect for renovation.

The two-bedroom home is being sold as is, with signs of black mold, vines apparently growing through cracks in the wall and littered with a previous occupant’s belongings, and has a price guide of $400,000 to $440,000.