There are still many unknowns however if the house is treated and is liveable (probably with a little work – say $10-$15k max), it may be worthwhile buying & renting it out until you demolish & rebuild. As it has a larger block, it may be possible to subdivide (STCA) or to erect a duplex. You will need to investigate your options with the town planners at the council.

If the house was in the Eastern Suburbs, then yes. If the house is in the outer west, probably not. It is hard to make a valid reply without a little more substance.

If you know what the land is worth, the size of the house (m2) and a replacement cost for a similar house, say $700-$800/m2 you can estimate the depreciated value of the house and/or the land value. Use the general assumption that a house depreciates at 2.5% pa (ie 40 year life) and you'll need to factor in the cost of treating the termites and repairing any structural damage which makes the house unsafe/unnhabitable.

Who owned the units between commencement of the scheme and the commencement of the levies?

The risk being though is that we don't see a similar correction in rents as we have seen with property prices. This may be driven by the lack of affordability for the rents asked pushing renters into the discounted properties and leading to a rebalancing of the market.

It is a double edged sword having seen a correction in property values (hence increasing affordability to purchase) we may soon see a correction on yield through lower demand.

It is probably best taken up with the executive commitee – they are responsible (in conjunction with the strata manager) for expenditure, insurance etc on the property.

If the area was working again, would it really add any value to the complex or only increase the body corporate fees for cleaning?

There was a recent tax ruling on this issue – you will need to see the ATO website to find it. The reason being is that many developers like Meriton & Australand were having to rent their properties before finding buyers.

Wayne – remember that structural additions does include any wall (as this is a defined term).

Playa, isn't that a risky strategy? ie if the purchaser decides that they don't want to proceed aren't you stuck with the property? or what is in place to ensure you do no land with properties that you can't finance?

You probably won't find them at borders – try the University Co-op Bookshop at Uni or TAFE colleges. (Possibly a library which specialises in property eg Stanton Library)