Sydney auction expected to generate 80,000pc profit

Sydney auction expected to generate 80,000pc profit

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A Sydney home has been forecast to sell under the hammer for $1.6 million – well above the $2,000 it fetched when it was last sold.

The property in question is a three-bedroom Victorian terrace house in the suburb of Camperdown.

This is the first time the property has been on the market since 1956, when it was sold to the grandfather of the current owner for £1,000 ($2,000).

Raine & Horne Petersham expects the property to fetch about $1.6 million at the 27 June auction.

Associate Ed Tancred said the neighbouring terrace was sold 13 years ago for about $311,000.

“It will be interesting to see what a £1,000 investment in 1956 will be worth 60 years later, without the need for any complicated modelling from an actuary attached to a merchant bank,” he said.

“No matter the final outcome of the auction, it’s sure to highlight the value of owning a quality, growth asset in a premier inner-Sydney location for a decent period of time.”

According to the most recent CoreLogic RP Data statistics, for April, Camperdown has a median house price of $1.2 million.

That represents growth of 32.2 per cent over the past year, 45.1 per cent over the past three years and 63.7 per cent over the past five years.

Mr Tancred said the property has been tenanted consistently for 13 years and is renting for $800 per week.

[Related: Sharp Sydney decline could be on the cards]

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