Sydney auction tipping: Stunning renovated home in Balmain East

A Balmain East home going to auction this week could demonstrate the dangers of overcapitalising.

There’s a website, www.propertytycoon.com.au, where punters can guess what they think properties will sell for at their weekend auctions in Melbourne and Sydney. This season Property Observer readers have their own competition, which you can access here. The winner of the overall competition will win $1,000.

Since they purchased it in 2006 for $1.4 million, the new owners have “gone to town” on the renovation for 110 Darling Street, Balmain East (pictured above). Top-of-the range finishes and a view of the harbour cap off this stunning five-bedroom home.

The question for tycoons is: has the owner over capitalised? When owners spend a lot of money renovating a property their valuation can be out of whack with the wider market.