Key Highlights :
In Australia, there are still a few homes selling for five figures, but one expert advises buyers to expect there is a reason. These properties are typically dilapidated fix-uppers or rural gems that require extensive renovation. For example, the Spalding Town School in Clare Valley, which is listed for $90,000, has been without amenities since 1929. The property may require a great deal of renovation to make the original fireplace and wainscoting sing again, but in an age when few homes are available for less than six-figures, the slice of SA history is a steal.
In Australia’s combined regional areas, the median house price is more than eight times that price, now sitting at $578,486 according to REA Group. This comes as data from a Resolve poll indicates 54 per cent of middle-income earners and 63 per cent of low-income earners have given up on the dream of homeownership.
Nearly 80km towards the coast in Port Pirie, an even cheaper property with polished floorboards and three large bedrooms is begging for buyers with a toolbox handy. The property is subject to a housing improvement order. REA Group economist Eleanor Creagh told 7NEWS.com.au that while the price may be alluring for prospective homebuyers, they should consider the additional investment that would be required.
“You have to be mindful that these are the cheapest properties on the market right now, they are significantly below the median value of homes in most regions,” Creagh said. “So you would have to expect that there is a reason why they are a lot cheaper, so you are either looking at location, or the state that the property is in. In most instances, the cheaper properties do require an additional investment.”
In Yealering, Western Australia, a weatherboard home is listed for $75,000 and is full of 1960s charm, complete with a vintage wood stove. In Bourke, New South Wales, a property with three bedrooms has been reduced to $80,000, nearly half of the average house price in Bourke. In Queensland, another one of the cheapest properties is selling in Pentland, 240km southwest of Townsville. The 2032sqm property has a large, fenced backyard and three bedrooms.
The pandemic proved the popularity of rural living when disaster strikes, with the prices of regional homes “holding up” more than in capital cities, Creagh said. Now that city living has largely returned to normal, prices have followed — but a preference for regional living remains higher than it ever was.
For those looking to purchase a five-figure home, there are some benefits to consider. First, these properties are typically cheaper than the median house price in most regions. Second, they often require a smaller initial investment than more expensive homes. Third, they may offer an opportunity to build equity and appreciation over time. Finally, they may be a great way to get into the housing market for those on a budget.
However, there are also some challenges to consider. First, these properties typically require additional investments to bring them up to livable standards. Second, they may be located in areas that are not desirable or have limited amenities. Third, they may be subject to housing improvement orders, which can require additional costs. Finally, the appreciation of these properties may be limited, as they are typically priced lower than the median house price.
For those considering a five-figure home, it is important to keep in mind the benefits and challenges of such an investment. It is also important to consider the additional investment that may be required to bring the property up to livable standards. Finally, it is important to research the area and understand the potential for appreciation and equity. With the right research and preparation, a five-figure home can be a great investment opportunity.