Dave Sharma buys into Wentworth electorate signalling Federal election intentions

Dave Sharma, the likely Liberal candidate in Wentworth in next year's federal election, has bought a home in the pricey electorate.

Sharma only started looking after losing the by election in late October. He exchanged contracts this morning.

The family, including wife Rachel and their three daughters, are to settle into Paddington, snapping up a Victorian terrace pre-auction for around $2.6 million.

The three level property had been a boarding house up until 2014 when it was rebuilt as a four bedroom, two bathroom family home.

It retains original elements that come with the more established Paddington terraces, such as a period facade and stained glass windows.

There's traditional formal rooms and a custom-built entertainer's kitchen as the hub of the home.

A courtyard sits at the rear of the 125 sqm parcel.

Last month he told the Daily Telegraph he had been looking at houses in Woollahra, Bellevue Hill and Paddington.

Local agents suggested the aspiring politician was willing to spend up to $3 million.

There had been a $2.5 million guide for its December 1 auction.

Sharma rented in Bellevue Hill after he won Liberal Party preselection for the seat vacated by former Prime Minister Malcolm Turnbull.

Sharma, who lost the vote count by a 1783 margin to independent Kerryn Phelps, retains a longtime Turramurra base.