Real estate: Where you can buy a house for under $40,000

Housing affordability isn’t an issue when it comes to what is probably the cheapest house on the market in Australia.

It’s not often that a real estate listing will get straight to the point when it comes to describing a house for sale.

“This property needs some serious work”, the listing for 154 Gaffney Lane in Broken Hill begins.

“Fix it up or knock it over and start again.”

The three bedroom home, which sits on a 641 sqm block of land, is currently listed as the cheapest house in NSW on realestate.com.au - available to buy for $39,950.

Sunset from The Living Desert Reserve in Broken Hill. Photo: Destination NSW

The home also features a lounge, kitchen, dining and bathroom area - with a store shed and single car garage on the outside.

Brought to market by First National real estate agents Zeta Bennett and Mitchell Halpin, the video footage of the home shows a large amount of debris strewn throughout the property, with holes in the ceiling and overgrown lawns throughout the backyard.

Housing affordability isn’t such an issue in Broken Hill. Picture: Supplied.

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A view of the backyard of the property.

Whilst the property may be the cheapest house a person could theoretically live in, there are vacant blocks of land in Broken Hill that are available for $40,000 or less - with the cheapest being $25,000 for a 680 sqm block of residential land.

Located 1000 km west of Sydney, Broken Hill has a median house price of $155,000 in March 2022 - a slight increase compared to February 2021 where prices sat around $120,000.
This is significantly cheaper than Sydney, where median house prices were nearly $1.4m

CoreLogic data suggests the property was previously sold and settled in 2008 for $70,000 after spending 62 days on market.
The longest period the house was on the market was 596 days, initially being listed in 2011 and taken off the market in 2013.

The median house price of Broken Hill is $155,000.

“The property has stood vacant for many years and has deteriorated without general upkeep and an owner being present,” Ms Bennett said.
“It has predominantly received interest from investors, it’s located in a fair residential area of Broken Hill with good access to shops, schools and a park.”

People that are currently struggling to get on the property ladder in city areas could come to Broken Hill for an easier opportunity.
CoreLogic head of research Eliza Owen said the lower prices in regional NSW would be enticing for some accustomed to excessive city prices.

A screenshot from the real estate video shows debris in front of the fireplace in the living room.

“The beginning of 2022 may be marked by a surge in demand for regional lifestyle markets, similar to the surge which followed the 2020 lockdowns,” she said in a CoreLogic Best of the Best report.
Demand for cheaper real estate in NSW would be driven, not only by rising home ownership costs in Sydney, but a broad shift by some professionals who worked from home to seek a lifestyle change.
“Our city has so much to offer in terms of lifestyle, employment opportunities and affordable living. Our housing market is very affordable and with Covid, the ability to work remotely and the desire for people to escape the city, Broken Hill is a very good option to consider,” Ms Bennett said.
“We have a high proportion of first home buyers in the marketplace and Broken Hill remains a fantastic location to enter the housing market.”
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This could be Australia’s cheapest house.

Originally published as Real estate: Where you can buy a house for under $40,000