A severely neglected Queensland home has sold for almost $800,000, an ominous sign for buyers in an increasingly tight property market.
The property, located in Mitchelton, approximately 10km north-west of Brisbane’s CBD, opened earlier this month and includes “two spacious bedrooms”, a third bedroom/den, master bathroom and open-plan living and dining room.
The Realestate.com listing describes the house as a 650-square-meter “ideal piece of land” that can be “emptied, renovated or simply demolished.”
“The house has seen better days, but it’s all about the land,” the ad reads.
“Its excellent location creates enormous development opportunities.”
A dilapidated house in Brisbane’s Mitchelton sold for just under $800,000 earlier this month
The house was sold in very poor condition, with clothes and other items covering the surfaces
The photos attached to the listing show the exterior of the house in very poor condition, with faded paint and pieces of wood scattered around the perimeter.
The interior is no better, with photos showing piles of trash and clothes covering surfaces in living rooms and bedrooms.
The bathroom is destroyed, the dressing table is falling off the wall.
There are unusual items on display, including a giant clock, a retro TV and even a jar of vegemite.
Parts of the roof can be seen falling off, and the stairs at the back of the house have been replaced by a crooked ladder.
The property was sold “as is”, which means that the buyer was able to get all the contents of the house, including the house and land.
Even real estate agents expressed little hope about the home’s potential, stating that “it might be easier to start over.”
The house sold for less than the median house price in Mitchelton, which is currently $926,500, but for more than the Brisbane median of $773,000 (stock photo)
The home sold for less than the median home price in Mitchelton, which is currently $926,500.
According to PropTrack data, the average house value in Brisbane was $773,000 last month, up more than 7 per cent in 12 months.
In the rest of Queensland, the average house price is $622,000, while the national median is $759,000.
This month, the Reserve Bank raised the interest rate for the 13th time in 18 months to a 12-year high of 4.35 per cent, leaving many mortgage holders struggling to keep up with their repayments.
The Melbourne Cup Day interest rate rise was aimed at stemming rising inflation, with the Consumer Price Index (CPI) rising 5.4% in the year to September.
Even before the latest rate rise, it was revealed that almost half of mortgage holders in Australia are in financial distress and paying at least 30 per cent of their income to service their loans.
According to the Australian National University’s model of the Australian tax and welfare system, households spending at least 30 per cent of their disposable income on mortgage servicing will account for 48.5 per cent of all borrowers by the end of the year.