Why this garage could sell for $1 million

A garage measuring just 8.1 by 6.4 metres is set to sell for the astounding price of $1 million, but there’s more to this humble brick building than meets the eye.

The property, located at 115A Ungala Road, Blacksmiths, is going under the hammer next month, and there’s a good reason for its seven-figure price tag.

At first glance, it looks like an ordinary garage, but its prime location is the key selling point. Picture: realestate.com.au/buy

The garage is located just footsteps from Blacksmiths Beach, a popular coastal spot in the Lake Macquarie region, about half-way between the Central Coast and Newcastle.

Its prime position just metres from the ocean means the 429sqm property, which is vacant apart from the approximately 52sqm garage, is what makes it Blacksmiths’ “best build opportunity” according to the listing.

The garage is located on a prime 429sqm building block just metres from the beach. Picture: realestate.com.au/buy

The property has E1 Local Centre zoning, which means any residential development of the block would also need to provide a business, retail or community use, according to Lake Macquarie council regulations.

But that flexible zoning is what adds to the property’s appeal, according to selling agent and Sold Real Estate director Shanti Page.

Blacksmiths Beach is popular with locals and holidaymakers alike, and is one of the most sought-after beachside suburbs among property buyers in regional NSW. Picture: realestate.com.au/buy

“The zoning allows for a mix of residential with a commercial element,” Ms Page said. “That extra dimension of being able to put in the commercial element is very attractive.”

“It’s not pure residential zoning. You can’t go and build a big new monster house there.”

The existing garage is an added bonus and has a few little luxuries, Ms Page said, potentially providing its new owner with a base of operations while planning their build.

Selling agent Shanti Page said the garage had been used as a a “beach shack” in the past. Picture: realestate.com.au/buy

The two-storey building includes an enclosed 5.46 x 6.4 metre garage area, as well as an adjacent carport. The second level is a mezzanine accessed by a central staircase.

“It has a toilet and plumbing, there’s hot and cold running water and there’s electricity,” Ms Page said. “It has a basic sink up the top, it can be used as a kitchenette.”

“The people who owned it built it as a garage with storage on top. However they absolutely used it as a weekender. It was their beach shack.”

The upper level of the garage includes a sink with running water, and is flooded with natural light. Picture: realestate.com.au/buy

Potential future uses for the property could include a cafe, bar, ice creamery, surf shop, health and wellness studio or luxury holiday accommodation, according to the listing.

“We can see it appealing to someone who wants to create a business, have a cafe out the front and a residence above it,” Ms Page said.

“The locals would support it all winter long. People love to walk that stretch, it’s begging for it.”

The property’s position right near the local surf club and the beach would make it an ideal building site for a cafe, bar, holiday accomodation or a number of other business ventures, subject to council approval. Picture: realestate.com.au/buy

“Blacksmiths does have a little shopping strip but it’s actually on the lake side of the highway.”

“There used to be a fish and chip shop next door but it’s been converted back to a residence. There are plenty of people who would like it to go back to a fish and chip shop.”

The existing garage adds another potential income stream, Ms Page said.

The flexible E1 Local Centre zoning means any residential development would also need to incorporate a business, retail or community use, meaning a cafe, takeaway shop or wellness studio could be potential uses for the site. Picture: realestate.com.au/buy

“To me it’s ideal for someone who likes to shape boards out the back and make a bit of pocket money,” she said. “Or it might become the man cave.”

Ms Page said the property represented very good value, considering its prime position and the popularity of the suburb.

“It’s in a really powerful location directly opposite the surf club,” she said. “We’re talking about a price guide around that million dollar mark.”

The listing describes the property as Blacksmiths’ “best build opportunity ever”, and with its proximity to the ocean it’s easy to see why. Picture: realestate.com.au/buy

Blacksmiths recently ranked as one of the most sought-after beachside suburbs in Australia.

Residential properties in Blacksmiths listed on realestate.com.au typically receive 52 enquiries per listing – about the same as Byron Bay.

“A lot of people come and they rarely leave,” Ms Page said. “It’s a comfortable distance from Sydney so there’s the ability to keep in contact.”

The property goes to auction on March 1.