Hi,
I am nearing settlement on a house in a regional town in QLD, $195k. Have tenants ready to move in and pay $330/week. House built in 97, always owner occupied, looks great.
At the last minute, the local Council has advised that several requisitions haven’t been complied with. Mainly plumbing things: seal shower tap to wall, install backflow regulator to outside tap; about 12 things like this. Then, Council advises that the carport has been built differently from the plans given D.A. Therefore, for the carport to get DA now, new plans will have to be submitted.
I called the vendor and told her I will settle, notwithstanding the lack of DA for the carport, if she knocks a couple of grand off the purchase price. She is thinking about it.
I have no idea if this is a realistic estimate of what it could cost to get DA.Does anyone have any idea?
What would you do in this situation?Cruiser
Hi Cruiser,
I work at a council in NSW (but not in the DA department). however i don’t expect the DA costs to be more than a few $00’s. You’re best contact the council and ask them directly.
What I would look into (and you may already have done this) is check on the cost of all the things you have to do to comply with what you have to do.
If the purchase price including all these, is still reasonable (and for the rent return it looks like it is) then go on ahead with it. Better yet if you get a couple of $000’s off for the inconvenience.
All the Best
[aacool] Ellie
Ellie Diaz
Your problems with Council don’t sound to be too expensive…however…if they want to be nasty and the carport does not comply they may want you to alter it and that may cost some more.
Incidentally, is $330 a week a typo or what? Who pays that rent money in a Queensland town? That is Sydney prices!
May God prosper you always.[biggrin]
MarcOriginally posted by Marc1:however…if they want to be nasty and the carport does not comply they may want you to alter it and that may cost some more.
If the carport does not comply with building regs, would they not be doing cruiser a favour by forcing him/her to alter it? They might save somebody’s life after all…
I would negotiate with the vendor for a reduction.
What does the QLD contract say? Are you in a position to call the shots? Or are you at a point where you need to settle regardless?
Keep us posted. It is a interesting dilemma that you are in and I would like to learn more aout it.
Thanks,
Simon Macks
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Hi guys,
thanks for your thoughts. Simon, that’s a good point. I was assuming that I don’t have to settle unless everything has approval and all requisitions are satisfied, but now that you mention it I am not so sure. Will check contract on Monday (it’s at work), and ask the sol.
Well, I didn’t hear back from the vendor yet so I guess I will have to make another call.
Marc, yes it is a good rent. The property’s in Cloncurry, which is largely a mining town, although one prospective tenant was moving from Townsville to build a supermarket there, and Qld dept of main roads has a main depot there, plus a lot of trucking company employees seem to live there. The mine subsidises the rents I think. In fact, I was disappointed because it was rented to the mine a while ago for $350/week but I can’t get that. At $330 it doesn’t meet the “11 second solution” does it? Nevertheless it is good.Cheers
Cruiserjust confirm you have seen the property. I would rather invest in Mt Iza (which maybe experiencing a little boom thanks to better than expected prospecting results at one of their mines). as long as u see the property and have everything in writing
Adrian Cahill | AdrianCahill.com Personal Development Expert
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Email Me | Phone MeHere since 2002, however things have evolved over the years.
Yes, I’ve seen the property. What happened, the vendor agreed to reduce the price to $190,000 as long as I accept responsibility for outstanding requisitions.
regards
Cruiser
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