Guide $1,600,000

The property at 64 Hugo Street, Redfern, is listed with a guide of $1,600,000. Comparing this to the available data, the median comparable house price in Redfern is $1,400,000 for a 3-bed, 1-bath property. Another 3-bed, 1-bath house sold for $1,400,000, suggesting the subject property, with its additional bathroom (2 total), could justify a higher price. However, a 4-bed, 2-bath house with parking sold for $2,500,000, indicating a significant jump for larger or more premium offerings. The $1,600,000 guide for a 3-bed, 2-bath house appears to be positioned reasonably within the Redfern market, potentially offering fair value rather than being significantly undervalued, especially considering its extra bathroom compared to the median. The outlier comparable at $11 is disregarded as invalid data.

For rental estimation, Redfern is a highly sought-after inner-city suburb. Based on current market conditions and similar 3-bedroom houses in Redfern, a realistic weekly rental income for a 3-bedroom, 2-bathroom house would be in the range of $1,050 - $1,150. Given the property's likely good condition for its price point and the strong demand in Redfern, an estimate of $1,100 per week is appropriate. This estimate has a moderate to high confidence level due to the consistent demand and rental rates for similar properties in the area.

At a purchase price of $1,600,000 and an estimated weekly rent of $1,100, the gross annual rental yield would be approximately 3.58%. While not exceptionally high, this yield is typical for premium inner-city Sydney suburbs where capital growth often outweighs immediate cash flow. The key investment strengths include the highly desirable Redfern location, proximity to the CBD, public transport, and amenities, which drive strong rental demand and capital appreciation. The property type (house) in an inner-city location also offers inherent value. The additional bathroom compared to many 3-bedroom houses is a significant advantage for renters. Potential risks include the high entry price point and the relatively modest rental yield, which means investors need to rely on capital growth. The lack of parking could be a minor concern for some tenants, though less so in such a well-connected area.

Recommendation: This property presents a solid long-term investment opportunity, primarily driven by anticipated capital growth in a blue-chip inner-city location. The rental yield is acceptable for the area. Investors should focus on the property's potential for appreciation rather than immediate high cash flow. A thorough inspection to assess condition and any immediate renovation needs is crucial to confirm the 'fair value' assessment.