Why Buying the Worst House in the Street Pays Off!
If you’re looking to enter Perth’s property market, then you certainly have many options on hand. Perth’s real estate market is growing at a healthy rate. However, recent reports suggest that the median price of new homes has just skyrocketed, making the dream of owning a property even harder for some.
Nevertheless, there is one very simple tactic you can use to get a property sooner – that is, to buy the worst house in the street. In case you’re not aware, the worst house will be far cheaper than the better houses in the street. Moreover, with a simple renovation you can then move in, rent it out or resell it. You’re sure to make a neat profit on a smaller investment.
For this strategy to be successfkerul, you must be capable of doing the renovation yourself. Meaning, you should have handled a previous renovation project or had prior experience with power tools to go down this route.
Today, I will be explaining more about how buying the worst house in the street pays off . Hopefully, this will encourage you to make a wise investment, like so many others have already done. You can thank me by purchasing home renovation products in Perth from us at Ross’s Discount Home Centre.
1. Most Buyers Will Overlook the Property
Buying the worst house on the best street can be a savvy move, as it often means facing far less competition. Many buyers prefer homes that are move-in ready, with modern finishes and minimal work required, so they tend to skip over properties needing substantial renovations. As a result, you’ll likely be bidding against only a small number of buyers, increasing your chances of securing the property at a more favourable price.
As Cherie Barber, host of The Living Room, notes, “You can make a lot of money from buying and renovating ugly houses. It doesn’t have to win design awards. It just has to be better than before.” By focusing on a property’s potential rather than its current appearance, you can reap the rewards of a strategic investment. Transforming a neglected property into something special is not only a financial win but a deeply rewarding process.
2. Nearby Properties Elevate Your Property’s Value
One of the significant advantages of buying the worst house in the best street is the inherent value uplift provided by surrounding properties. When a home is located in a sought-after, high-quality neighbourhood, even a modest renovation can yield a substantial return on investment. The appeal of well-maintained homes and manicured landscapes nearby will help elevate your property’s perceived value, often boosting its market worth considerably.
Renovating an outdated or unattractive property allows you to benefit from the “halo effect” of your desirable neighbourhood. Potential buyers are willing to pay a premium for a property in a high-demand area, especially one that now aligns with the aesthetic and quality standards of the homes around it. By improving kerb appeal and updating key interior spaces, you not only align your property with neighbourhood standards but also create a home that’s likely to appreciate faster than similar houses in less prestigious areas.
3. A Smart Way to Access a Desirable Neighbourhood
Purchasing the worst house on the best street presents an outstanding opportunity to gain entry into a sought-after neighbourhood at a significantly lower cost. For many buyers, this is the most affordable way to secure a property in a high-demand area known for its amenities, reputable schools, and low crime rates. While the home itself may require some work, its location can provide a solid foundation for long-term property appreciation.
For investors and homeowners alike, this approach is particularly appealing. If you’re not planning to live in the property, renovating the worst house in a desirable area can still yield profitable outcomes. High-quality neighbourhoods tend to attract tenants willing to pay a premium, providing a strong rental return. Alternatively, once the renovations are complete, finding a buyer is often easier, as homes in popular suburbs generally enjoy high demand and can be quickly resold at a profit.
4. Renovating: An Investment That Yields High Returns
When you buy the worst house on a desirable street, a renovation isn’t just necessary—it’s an investment with substantial potential returns. Unlike other property improvements that may yield marginal gains, renovating a well-located property in a high-demand neighbourhood often generates impressive appreciation in value.
In Perth’s current real estate market, every dollar spent on quality renovations adds to the home’s long-term value. For instance, renovating to modernise the kitchen, upgrade the bathrooms, and enhance kerb appeal not only increases the property’s immediate market value but also ensures sustained appeal among future buyers and renters.
A compelling example of this strategy is Melissa and Richard Heath, who bought a dilapidated house in a prime neighbourhood for just $582,000. They invested $280,000 in renovations, transforming the property and later selling it for a remarkable $1.39 million. Their strategic renovation yielded a $528,000 profit—a return that outpaced the cost of the house itself!
To kickstart your home renovation in Perth, Ross’s Discount Home Centre offers an extensive range of high-quality, affordable products. From premium tiles and tapware to top-grade appliances, fixtures, and fittings, we have everything you need for a successful renovation. Enjoy convenient delivery across the Perth Metro area and browse our online store to find all the essentials for your next project.
Conclusion
One simple way to enter Perth’s property market at an affordable price is by buying the worst house on the best street. This tactic offers many benefits. Most buyers will ignore the property, so you have a better chance of snatching a bargain. Once renovated, the better-looking homes in your neighbourhood will raise your properties’ value.
As you can see, this strategy offers a great opportunity to enter a good neighbourhood. And, the money you spend on your renovation will become a great investment in the long run.
Once you have secured your property, head over to Ross’s Discount Home Centre. We offer everything you’ll need to complete an affordable renovation in Perth. You can drop by our showroom in Guildford or shop online and take advantage of our $50 Perth Metro delivery.