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.

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"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.

Jonathan Chancellor

Jonathan Chancellor

Jonathan Chancellor is one of Australia's most respected property journalists, having been at the top of the game since the early 1980s. Jonathan co-founded the property industry website Property Observer and has written for national and international publications.

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