Boarded up, gutted Geelong homes spark ‘insane’ interest
Inquiry has been off the charts for an uninhabitable Geelong West unit and a Belmont home where potential buyers are warned entry is at their own risk.
With boarded up windows, holes in the walls and smoke damage it will take more than a lick of paint to make this Geelong West unit habitable.
But the one-bedder’s sorry state isn’t deterring would-be flippers who are lining up for the chance to renovate the bargain buy.
The interest in 1/1 French St, Geelong West, has been so strong Hayeswinckle agent Matthew Roberts decided to convert its private sale campaign to an auction scheduled for February 22.
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He said banks were unlikely to lend money on the unit, given it was currently unliveable, but there were plenty of cash buyers ready to go, with almost 50 people already expressing interest.
The $219,000 to $239,000 price range is a big drawcard, though he estimates you would need to spend between $35,000 and $60,000 to bring it up to scratch.
“Everybody has been pretty willing to take on the work. It needs replastering, it needs new electrics, it needs a new kitchen, new bathroom, new flooring,” Mr Roberts said.
“I think the resale value in it is probably around $330,000 so I guess there’s just enough in it for people not to overcapitalise and obviously the rent return in that area is really good.
“It’s a bit of a niche market and the fact it would probably get a least $350 a week in rent if it was redone.
“Most people are either looking to flip it or invest in it.”
The brick unit, one of six in the complex, was previously owner occupied but has been vacant for more than 12 months.
While construction costs have tempered interest in renovator’s delights more broadly, Mr Roberts said the outlay for this one stacked up as a quick, easy project.
“The overheads are really low, whereas you could buy a house for $650,000 in Belmont and you could probably flip it for $1m but people don’t want to overextend themselves,” he said.
Those who are up for a bigger renovation challenge, however, are excited by a gutted three-bedroom house for sale at 56 Marjorie Ave, Belmont.
Described as a “diamond in the rough”, the property comes with a warning to enter your own risk and not outside open times with much of the plasterboard removed, stud walls exposed and some sections of timber floor missing.
Despite this, Ray White, Highton agent George Politis said inquiry had been “off the charts” ahead of the March 5 auction.
Buyers can expect to spend $550,000 to $600,000 on the house, where the restumping is just about the only job completed.
Mr Politis said the flexibility to finish the renovation, start afresh or develop was key to the ‘insane’ interest.
“I’m not sure what it would cost to renovate it but you could spend a couple of hundred thousand on it,” he said.
“The record in that area is in the early $800,000s so if you are going to spend a couple of hundred thousand on it you are still going to be ahead.”
Originally published as Boarded up, gutted Geelong homes spark ‘insane’ interest