SMSF investor snaps up derelict Erskineville terrace as price per square metre pushes the envelope

A crumbling deceased estate terrace in Erskineville fetched $890,000 at weekend auction when sold to an investor using their self-managed super fund.

Some 40 plus contracts were issued pre-auction for 43 Park Street, Erskineville, an original two storey Victorian terrace on 82 square metres located directly opposite Erskineville Park. It's price reflected $10,800 a square metre land rate given the block size.

There were 25 bidders registered with 10 pushing the price up from the initial $750,000 guide given last month.

The street's last sale was in late 2012 when a double fronted, two storey terrace on 124 square metres fetched $985,000, reflecting $8000 a square metre for the land rate.

In April, 26 John Street, Erskineville, a one-storey three-bedroom terrace (pictured below) sold for $770,000 through local agent Braden Walters. It reflected $4100 a square metre land rate given it had a 186 square metre block size.

"Bring your architect and your imagination and explore the possibilities to create something special," the marketing said for the $890,000 property.

Property investors who borrow through their self-managed super funds to acquire a property are allowed to undertake some improvements following the mid-2012 release of a final ruling by Tax Commissioner Michael D'Ascenzo.

Erskineville's median house price is $822,750, up about 9% over the past year, according to RP Data.