Tasmania cottage named The Crack House sells for $1.3 million in Derby

A property nicknamed the “Crack House” has sold for a price that left locals stunned, but it was also a sad day for the community.

This two bedder cottage in the small town of Tasmania sold for a record $1.3 million. Picture: Knight Frank

A run down cottage in Tasmania, nicknamed ‘The Crack House’, has sold for a whopping $1.3 million — stunning locals in the small town.

Built in 1900, the property set a record for the town of Derby, but was sold under bittersweet circumstances.

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Real estate agent Justin Wiggins from Knight Frank said they “don’t normally do auctions” in Derby but they didn’t know what it was worth.

“I had hundreds of interested parties, lots of emails and phone calls and it was probably the most looked at property in my career in 16 years of real estate,” he told news.com.au.

Derby is well known internationally for its mountain biking trails.

The home was owned by Jeffrey Hayes, who purchased the house in 2018 and transformed it into a makeshift bar which he nicknamed The Crack House, a name which has stuck ever since.

He recognised a need for more bars and restaurants in Derby, especially for events like the Enduro World Series mountain biking race which was last held in 2019.

The Crack House’s bar. Picture: Knight Frank

Jeffrey Hayes created The Crack House. Picture: Facebook

It saw a number of famous riders grace the property for “legendary parties” and also spawned a range of hoodies, T-shirts and caps that are all over town now.

Virginia Valentino, a Derby resident who went to school with Jeffrey’s dad and who owns accommodation business Cascade Cottage, said the house’s nickname was “just a bit of fun”.

“Jeffrey was anti drugs of any kind, he liked a drink, it was just a play on words as the house was cracking up and falling down,” she said.

“If it had been in inner Sydney it probably would have been a crack house but it was just a tumbled down cottage on the main street in Derby.”

Tragically, Jeffrey Hayes died last year at just age 36 from a brain aneurysm.

Mrs Valentino, 71, said the story behind how Jeffrey bought the house was just as “amazing” as the record sale.

“The people who had been living in it disappeared from town and no one really knew where they went so Jeffrey decided he wanted to buy that place and he did some searches on them on social media and he located them. They had won Tattslotto and done a midnight flip and had left town,” she said.

“When Jeffrey bought the house, the beds were still made up, there was still food in the cupboards. They just literally got word they had won Tattslotto but just left and went to Queensland. We don’t know how much money they won but it was obviously significant.”

Inside The Crack House. Picture: Knight Frank

Behind a wide front veranda, there are basic spaces for enjoying and entertaining. Picture: Knight Frank

But she added while the record sale was exciting, it was tempered by the fact Jeffrey had passed away and his family is “really grieving”.

Mrs Valentino said Jeffrey was “larger than life”, a talented tradie and cabinet maker and a sociable person, while ‘The Crack House’ was known for its “legendary parties”.

“He knew Derby needed an extra place for people to party, it was right there on the main street and perfect for people to congregate after riding and to have a beer,” she said.

“Instead of having a party at his house he had it at The Crack House.”

She added locals were “flabbergasted” that the property went for $1.3 million.

“It was astounding really, but having said that, it’s a big parcel of land right on the main road, it’s got a great view over the town and bike trials and it’s a perfect spot,” Mrs Valentino said.

“The person has a blank canvas and can do whatever they want with it. The locals will be interested to see what happens and perhaps hope the heritage look of the town isn’t disrupted, it’s a little timber town and it’s got some lovely old buildings.”

Mr Wiggins, who was a friend of Jeffrey’s, said he was a “bit of a character” and was missed dearly.

He said they had expected high $800,000 for the property and only three people got bids in as the price climbed so quickly.

“Jeffrey always used to say when we had a few beers, that he would sell it for a million dollars one day and he was right,” he said.

The house is on a massive 2587sq m block and overlooks the town. Picture: Knight Frank

The new owner, who lives with his family in New South Wales, is a keen rider and loves Derby and is keen to come down and be a part of the town, he added.

“He was out riding with some friends on a farm and he had to ride away from the others and go somewhere quiet and bid for it,” he said.

“When he won he had to call his friends and ask them to come up to their house as he needed a printer to print off and sign the contract.”

Mr Wiggins said Jeffrey would have been “very proud” of the sale.

“He would have been elated and probably still have a party going on now, he definitely would have celebrated,” he said.