Could this be Australia's cheapest house?

It could be the cheapest house for sale in Australia.

For a likely sale price of A$45,000 — 20 times less than the average Sydney asking price — you can own a two-bedroom house with a backyard and garage located just over 1km from the CBD.

“It’s a house so cheap it sells itself. You can have smashed avo and buy a house as well. It’s crazy isn’t it?” said the listing agent Cliff Wren.

There’s a catch though. This isn’t a hidden gem in Sydney or Melbourne. This house is located in Broken Hill, 1000km west of Sydney, a town surrounded on all sides by desert.

While it’s far from the city, an innovative investor strategy in the outback town is helping people climb the property ladder in the big cities.

“This house is a renovator’s delight,” said Wren, from Broken Hill Real Estate.

“Well, it’s either renovate or detonate,” he chuckled. “But everything’s working.”

He admitted the house was “no Taj Mahal” and needed around $15,000 to bring it up to rental standards.

He added that the likely buyer would be an investor.

“Investors just swarm at these houses under $100,000. They tart it up, make it liveable and then rent it out to a nurse for a couple of years."

Mr Wren said people struggling to get on the property ladder in the cities should do the same: “Come to a regional centre. We have clients who’ve bought two or three little houses, rented them out for five or six years, paid it off and then sold them and that’s their deposit for a house in Sydney, Melbourne or Canberra.

“You buy it for $40k, spend $15k on it to make it look right then you could then sell it for $85k or $90k — that’s a good little $25k flip.”

By comparison, the cheapest Kiwi houses currently listed on OneRoof.co.nz are a two-bedroom home in Taumarunui, Ruapehu. and a three-bedroom tenanted home in Bluff, both of which are being marketed for sale at $79,000.