Would you pay $1.5m for this dump?
THEY'RE uninhabitable homes with dangerous floors and collapsed ceilings - but Sydney's dwindling supply of fixer uppers could be the last chance for home seekers to get an inner city house for under $1.5 million.
Listing data has revealed there are now less than 140 houses within a 5km radius of the CBD still priced below $1.5 million and so-called renovator's delights make up the majority in some suburbs.
The slim choice of housing options has defied a listing surge in the rest of the city, where there are currently 21.1 per cent more homes available for sale compared to last year, figures from CoreLogic showed.
Realestate.com.au chief economist Nerida Conisbee said most of the new listings were newly built units and tended to be well outside the inner city.
There was a shortage of inner city detached houses because owners rarely wanted to let go of them, she added.
"It's a desirable area so few (house) owners ever sell in the inner city most years and even less are now selling because of the way the market is going," Ms Conisbee said.
"That handful who are selling often have urgent reasons for the sale and really need the money, so it's no surprise the houses are not always in the best condition."
Among the few inner city detached houses currently available is one of Sydney's most dishevelled homes ever listed - a one-bedroom terrace in the inner west suburb of Birchgrove.
The exterior fittings of the Rowntree St home have turned to rust, the windows are boarded up and parts of the interior are cordoned off with yellow caution tape because the floors have caved in.
Listing agent Peter Kenney of Coopers Agency said the one-bedroom house has been uninhabited for years and goes to auction August 25 with a price guide of $990,000 to $1.08 million.
"Working on this home wouldn't be like a TV reno," Mr Kenney said.
"Most of the people who have been interested are very experienced builders or capable renovators … you need to know what you're doing."
A dilapidated house in Erskineville advertised as "easily the best opportunity of the season" is also up for sale requiring major work.
The home at 86 Charles St has significant ceiling damage, peeling walls and uneven floors and goes to auction with a guide of $800,000-$850,000.
On the same street, a two-bedroom house is also up for sale requiring a similar level of work and goes to auction August 18 with a guide of $1 million.
LJ Hooker-Newtown agent Candice Huffman, who is selling 86 Charles St, said there was strong demand from buyers for fixer uppers, but most were finding it challenging to finance their renovations.
"Banks are tightening up their lending so you can't use part of your loan for the renovation any more," she said. "Instead, you need to use your own cash and not many people have that."
Ms Conisbee said inner city buyers who didn't have an appetite for renovating would have to compete with well-heeled upgraders.
"The problem with Sydney's inner areas is that they attract buyers with a lot of money, so as soon as a quality home comes on the market it is snapped up quick," she said. "The rest of the buyers then have to compete for what is left."