Just want to share my recent buy to all.
The property is negatively geard but it was bargin, i brought a property in good location in western sydney which was on market for $279,000 good buy at that, for $279,000 you can only find bad housing comission homes in not so good areas.
i agreed upon price and pushed the owner to sell at $265,000 i then did pest & building inspections only to find it had termite activity throughout 25% of home (they suspect, maybe there is 25% i should say, maybe none). i then negotiated the price to $248,000 its only a 556sqm block but is on corner block in a private area, and has no power wires ove top or any thing.should have been about $300,000.
the block is worth like $240,000 and the property rents for $210 pw.
what are your thoughts??
p.s. when new motorway goes through it will go up even more in value!
Did the inspection say the termites have gotten into the walls and floor? If so, it can be hugely expensive to fix this (10’s of $’000’s).
You should get a bigger reduction I think or at least get an inspector to do the wall cavities (more expensive and you will need the owners permission due to the holes they drill).
It may sound like a bargain, but you could be up for some huge bills if termites have done the damage. Can you afford a $30,000 bill for ripping up floors, ripping out walls etc? Also the tenant ( I assume it is to be an IP), will need to live somewhere if it is bad.
Also, the inspectors will recommend follow up visits every 3 months (expensive too), which if you want to be sure they have gone, I recommend too.
I have seen the damage they can do, IMHO it is not worth the risk.
‘Eat rich food, barbeque a yuppie’ [greedy]
Wow Its a lot of money for a so so area
So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
yeh in walls and ceiling,
it is on a concrete slab, so not in floor, i will get it sprayed.
there is no tenant at moment, the pest inspector said to follow up every month. so it sounds pretty bad but on the otherhand it is cheap and paid next 2 land price.
it is an investment after all, and it is liveable you know…… but it has past termite activity.
thats a $30,000 price reduction, cant be termites in floor. only in walls/roof.yeh in walls and ceiling,
it is on a concrete slab, so not in floor, i will get it sprayed.
there is no tenant at moment, the pest inspector said to follow up every month. so it sounds pretty bad but on the otherhand it is cheap and paid next 2 land price.
it is an investment after all, and it is liveable you know…… but it has past termite activity.
thats a $30,000 price reduction, cant be termites in floor. only in walls/roof.Originally posted by RussH:Wow Its a lot of money for a so so area
So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
Russ
With all due respect to you coz I know you are only into +ve CF properties, there are others who do see the benefit in -ve gearing. $248K is not a huge amount in the Sydney market.
The Sydney market CG’s are so far above WA’s its not funny. If this property only costs nathan $50 a week to keep, the CG will far outweigh his costs.
‘Eat rich food, barbeque a yuppie’ [greedy]
thanks rugbyfan,
i guess u from sydney.
this is near mount druitt.
if u know the market there at all they normally go for like 330,000 for a b/v @ 25 years old,
so this hardiplank beauty is a good little starter i belive.
i have to add 200$ per week to it but yeh it cost $248,000 and i plan on spraying termites for $2500, and then renting it out, the fact termites are in it wouldnt affect my rental prospects as it looks like good order and should archive about $210 per week.
next property is by september and that will be a dump in the sticks for +cf to help fund this one.Yup, from Sydney and haver had a little bit of experience with those nasty white ants.
Expensive to deal with.
I don’t know the Mt Druitt market that well, I have been out there a number of times though. As long as you are happy with your decision, good on you. $248,000 sounds like good value when the housing commission homes are probably more than that.
‘Eat rich food, barbeque a yuppie’ [greedy]
a dump in the sticks? hmmm. Nathan, you have a rather substantial termite problem. People choose to buy cheaper houses in outlying areas because they are more affordable. I hope hte termites don’t eat up your place in sydney too much, because you may have paid for land only.
kay henry
i belive that the property how it sits i can get about 10-15 years rental out of it.
then i dont care, like id doubt a house will fall down because there may or may not be termites in it.
There have been people living in it now for some time and it has concrete floor, + i plan on treating them i not concerened about repairing it, that il just keep in me pocket.thereason why i want a property in a rural area like 10000 people approx is because they are in expensive and they have good rental returns.
Hi Nathan,
OK you’ve got a pest inpsection report that isn’t too complimentary by the sounds of it – have you also got a building report with cost estimations to see how much it will cost to complete any essential and not so essential repairs?
Derek
[email protected]Read my comments? Think I can help you? PM or email welcome.
the pest inspector said probably 10,000 damage + then about $2500 to repar the termites
i got $17000, off my already negotiated price.
so all up i got $32,000 off. if i was to demolish and start all over which i dont have to do it would be like $15000 + $65000 for cheap building.land value for the area well… land doest sell there coz there isnt any new land but there was 1 sub divisiion in a surrounding housing commission area for sale for 189-210 but that main road and houseo….
my estimations would be about 225,000 for the land?
maybe $23,000 for the house.
so it was good buy considering i have a 10 year rental property there![biggrin]the pest inspector said probably 10,000 damage + then about $2500 to repar the termites
i got $17000, off my already negotiated price.
so all up i got $32,000 off. if i was to demolish and start all over which i dont have to do it would be like $15000 + $65000 for cheap building.land value for the area well… land doest sell there coz there isnt any new land but there was 1 sub divisiion in a surrounding housing commission area for sale for 189-210 but that main road and houseo….
my estimations would be about 225,000 for the land?
maybe $23,000 for the house.
so it was good buy considering i have a 10 year rental property there![biggrin]Gee I dunno guys.280k buys a ip with no termites and a return of $400 p/w over here.Hope noone falls thru the floor could cost u a lot more.
And u all think I,m crazy!!!!!So many +CF properties in Western Australia.Let me help you. And we can achieve a win win situation.Russ.0438 659 411
What’s with the double replies guys – Admin, Brent?????
‘Eat rich food, barbeque a yuppie’ [greedy]
its solid concrete slab construction,
they said evidence of past activity, and they could “possibley” be in wall, and roof, big BUT.
its cheap for sydney and will gain capital growth for me, and then more equity.
the roof wasnt sagging or anything from my memory, and the building inspection did not even pick up any evidence, just the pest report picked all of it up!
they couldnt get into the roof to see if there was or was not.Hi Nathan,
Well so far it seems as if you have considered all angles and done your research. Well done and hope that the investment is a success.
Derek
[email protected]Read my comments? Think I can help you? PM or email welcome.
Thankyou guys for all your thoughts on my property!
i will let you all know how it goes!
settles on thursday![biggrin]Thankyou guys for all your thoughts on my property!
i will let you all know how it goes!
settles on thursday![biggrin]Nathan good to ask questions.
But I think you are emotionally caught up in this place becasue you see it as a good buy. I disagree.
What you have to see is what you are going to be spending. You dont know that it will only cost 10k or whatever to fix, there are no guarantees!!! No pest person will ever give you that because they cant, no more than they can be sure that the home is only 25% affected.
Personally, I would say if you are dead set on this place offer a lot less! or ask the owner to have the work done at thier cost and then get a reinspection or have a clause in contract see solicitor to withold some funds pending time frame.
The size of the block is not too bad. The area around Mt Druitt and Blacktown has seen considerable growth. I could tell you that not many years ago a property in blacktown, newer section was bought for 125k, sold for 400k, that another in the older section of blacktown, with pool made a considerable profit (not mine).
Mt Druitt has a stigma attached. But it doesnt meant to say it isnt great. Consider a few more Kms out? look even at Kingswood near the uni properties can be bought for near that price on larger blocks close to ammenities…..essentially dont settle for the worst house in the worst situation at a reasonably high price (ok I know like you do280- 300 is more the mark but for new places)
It sounds to me like you are trying to convince yoursef that this IS a good deal. stand back a bit and consider….if there are termites in the house and if it has wood fence chances are they are there too and what about any trees?
Termites are part of the bush, but you dont wan them part of the home you own.
Cheers
Elves
” a blind man may see what a sighted man may not”
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