An old dump of a house that has been used to store paperwork for 20 years has emerged as one of Perth’s best buys.
The Subiaco home, which doesn’t even have running water, has more than quadrupled in value since the previous owner, real estate agent Niki Peinke, paid $385,000 in 2001.
With barely a penny on maintenance and being described as having “no redeeming features,” the home has seen its price rise 315 percent to settle for $1.6 million this week. The Western Australian reports.
It’s well above the 211 percent increase in the median home price over the same period. Ms Peinke bought the two-bedroom house on Gloster Street 20 years ago just to store the paperwork pouring out of her nearby office for her real estate listing business.
It seems crazy that just 20 years ago, mortgage payments on a home in upscale Subiaco were cheaper than renting a storage room. But that’s the vagaries of real estate.
“It’s basically a run-down old house where I’ve kept papers for the last 20 years,” Ms. Peinke said.
“I calculated the cost of storing and buying the house and it was cheaper to buy the house. So I just bought it for storage.”
The high-profile realtor said she’s done little repairs or renovations — aside from repairing a collapsed ceiling.
Ms Peinke attributed the home’s meteoric rise in price to “location, location, location”, with Gloster Street becoming one of Perth’s best streets.
She said homes appreciated in value until the recent spike in building costs, largely because of the size and location of the lot.
But she said greater value is now being offered in the actual buildings after construction costs have recently skyrocketed.
She believes that the new owners of the property will try to restore the facade of the 1920 house with a modern extension on the 521 sqm block.
Ms Peinke, who lives in Claremont, said she sold it so she could buy a holiday home in Margaret River and be closer to her daughter Chelsea.
House, which! The column on WA’s most interesting homes and their owners
https://www.perthnow.com.au/local-news/perthnow-western-suburbs/house-that-real-estate-agent-niki-peinke-makes-huge-profit-on-subiaco-property-she-bought-to-store-paper–c-7851877 House, which! Real estate agent Niki Peinke makes huge profits on Subiaco properties she bought to store paper