Guide $1,400,000

This 3-bedroom house at 10 Woodburn Street, Redfern, is listed with a guide price of $1,400,000. Compared to the provided comparable properties, this property appears to be reasonably priced, leaning slightly towards undervalued given its 3-bedroom configuration and Redfern's strong market. Comparable 2, a 3-bed, 2-bath house, sold for $1,600,000, suggesting our subject property at $1,400,000 (with 1 bath) offers a potential entry point below the median for similar bedroom counts. The average price of comparable properties is skewed by the outlier $11 listing, so the median of $1,600,000 is a more reliable benchmark. Given the subject property has 3 beds and 1 bath, it sits below the 3-bed, 2-bath comparable in terms of amenity but is also priced lower.

Based on the comparable rentals, a 3-bedroom house in Redfern can command strong rental income. Comparable 2, a 3-bed, 2-bath property, has an estimated rent of $1100/wk. Our subject property has one less bathroom, which typically reduces rental appeal slightly. Therefore, a realistic estimated weekly rental income for 10 Woodburn Street is $1050. This estimate is grounded in the direct comparison with similar bedroom counts in the same suburb and current market conditions in Redfern, which experiences high rental demand. The estimated gross annual rental yield, based on a purchase price of $1,400,000 and $1050/week rent, would be approximately 3.9% ($1050 * 52 / $1,400,000 * 100). This is a respectable yield for inner-city Sydney, especially for a house.

Key investment strengths include the property's prime Redfern location, strong demand for houses in the area, and potential for capital growth. The current price guide appears competitive. The flip potential is high due to the single bathroom, suggesting scope for renovation to add a second bathroom, which would significantly increase both value and rental appeal, aligning it more closely with the $1,600,000 comparable. Potential risks include the competitive nature of the Redfern market, which can push prices up, and the cost of renovation. The lack of parking is also a consideration, though common for this type of property in Redfern. My confidence in the rental estimate is moderate-high, given the direct comparable data, but actual rent achieved can vary based on specific property condition and market timing.

Recommendation: This property presents a solid investment opportunity, particularly for an investor willing to undertake a renovation to add a second bathroom. The initial purchase price offers good value, and the potential for increased rental income and capital appreciation post-renovation is strong. Further due diligence on renovation costs and market appetite for renovated properties in Redfern is advised.