For less than $500,000 and just minutes from Hobart's CBD, you could buy your own home — but you might have to factor in peeling paint, cracks in the ceiling and missing wall panels.
While median house prices are falling across the rest of the country, Hobart is still riding the wave of a housing boom and it's no longer unusual to see million-dollar price tags on properties in the inner-city or in more desirable suburbs.
The most recent CoreLogic data, released on Monday, showed Hobart was the only capital city in Australia to see dwelling prices rise in the last three months.
In the past quarter, dwelling prices — which includes houses and apartments — in Hobart rose 1.2 per cent to $464,168.
"It's no longer the most affordable capital city to be buying into," Core Logic head of research Tim Lawless said.
"We can see markets like Adelaide, Perth and Darwin more affordable than Hobart, so there's been a changing of the guard there."
But that does not mean there are not bargains to be had — if you're willing to make a few sacrifices.
Real estate agents say market entrants are willing to buy, and live in, near-derelict properties just to get a foot in the door.
New Town real estate agent Neville Crowther said "fixer uppers" might be expensive to renovate, but for many would-be market entrants, it was a small price to pay for bargain deal in a good location.
Mr Crowther has a listing for a neglected North Hobart property — just seven minutes from the city — which is on the market for just under $500,000.
He said the three-bedroom weatherboard was attracting the most interest from first-time buyers.
"While it's got fantastic city and harbour views, it needs a lot of work," he said.
"These properties are snapped up quickly because people can get into the market and they can get into a good location on a budget."
Run-down property listings on the up
Claremont-based agent Patrick Moane said an increasing number of so-called "renovators" were being listed to capitalise on favourable market conditions.
"I listed a cheap renovator property in the northern suburbs a few days ago and my phone has been ringing off the hook," he said.
Mr Moane said buyers looking to purchase "renovators" were willing to live in their own run-down property, instead of paying high rents.
"We've got a rental market that's out of control," he said.
"They buy a house, it needs some work because it's not perfect, but at least they have a property."
But Real Estate Institute of Tasmania president Tony Collidge said beauty was in the eye of the beholder.
"If it's in a really good location and someone is prepared to do the work, and they see the value there, by all means, it's up to them," he said.
"Nobody is being forced to buy property that is in that sort of condition."
