Your choice either knock it down and redevelop (Zoning Neighbourhood Residential) or fix it up for now. The house sits on 809 sq.m. and would be a great site to build a new home or units (STCC) or just get stuck into it with all the elbow grease you can muster, a tonne of no-more gaps and 30 litres of paint. This little house will come up shining like a new penny. Unfortunately this house will have to come down eventually the time frame will be up to you.
The three large bedrooms plus study are air conditioned, the kitchen is also reasonable and has a new stove. The bathroom is OK and still serviceable. The garage will store heaps of gear or a car and if you are an historian there is still an out house down the back corner of this great block of land.
My advice is show your partner a couple of worse renovator's first then come to this one, there might be a chance they will except it. Either way the price is reflective of the properties condition as the owner wants the property sold immediately.
Have an inspection and make up your own mind. Don't delay, call NOW!