Why even ‘ugly’ properties are being snapped up in Camillo

Would you buy a property that even its listing real estate agent called “ugly”? For some savvy investors, buying a run-down real estate asset is worth it — if it’s in Camillo.

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Located approximately 25 kilometres south-east of the Perth central business district (CBD), the under-the-radar suburb has recently caught attention when it notched what is deemed to be the cheapest house sale in 2023.

A three-bedroom, one-bathroom duplex in the suburb was reportedly sold in March for just $140,000 and is understood to be the cheapest home sold in Perth this year. For added context, Camillo’s median house price currently sits at $351,000.

However, this seemingly enticing price tag came with a major catch — the property was in a dilapidated condition.

Given so little to work with, the property’s listing agent, O’Neil Real Estate agent Mark Grogan chose to do away with the traditional sales pitches, choosing a more creative route to sell off the run-down property.

“This is pretty rough folks … ‘Pretty’ is generous because it’s ugly. Rough is being polite,” Mr Grogan said in an online listing for the home.

“‘Stuffed’ makes it sound like a cuddly teddy bear … which it is not. ‘Screwed’ makes it sound like things are still attached ... which they are not. Get my point?” the listing further read.

The agent further described the property as “airy”, mostly due to the fact it was missing a front door. “It’s been tagged up inside when it was sitting empty, and so now we’ve got some paint to paint over,” he added.

He also did not sugarcoat what kind of a challenge the property presents to the hardiest of fixer-uppers, stating: “It needs a new kitchen, bathroom, doors, windows, flooring and possibly other bits and pieces too.”

Despite the property being in a state of disrepair, someone clearly saw potential in the home and snapped it up for a record low in 2023, with the sale being made on 31 March.

Is this a case of a “lemon” buy (or a property purchase that turns out to be worth far less than believed), or is it a case of a diamond in the rough?

Given the recent data, the buyer who snapped up the run-down property may have actually not just made a smart bit of business — but may have also reeled in their big investment catch.

Recently, Camillo has emerged as a top contender among numerous other suburbs in Perth, securing a coveted spot in the Smart Property Investment Fast 50 ranking for the upcoming year.

Drawing insights from a 14-strong investment expert panel and recent housing performance collected from open-source data, the Fast 50 report offers an unparalleled glimpse into Australian suburbs poised for future growth, providing valuable insights into their housing performance.

Described as a relaxed lifestyle, family-friendly environment, and convenient access to amenities with its parks, schools, and shopping centres, Camillo is an ideal destination for families, first home buyers, and investors seeking an affordable entry point into the property market.

Over the past year, the suburb has recorded a total of 134 property sales, indicating a steady level of market activity in the area.

In terms of capital growth, Camillo has demonstrated positive trends, with a median quarterly growth rate of 3.30 per cent.

On average, properties in this suburb have shown an annual growth rate of 1.90 per cent, while the 12-month growth stands impressively at 14.40 per cent.

For those looking to become landlords, investors can find enticing prospects in Camillo’s rental market, which boasts a healthy gross rental yield of 6.30 per cent.

Notably, Camillo has also been named one of the 20 suburbs where first home buyers can escape the “rent race” by meeting criteria such as affordability, high demand, a tight rental market, and a significant number of property developments in the local area.

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