Hi all.
Firstly I would like to say thank you to everyone for all your replies to my posts so far, they have been most helpful.
I am considering buying a property to rejuvinate and then let out. I thought it would be a good idea to make the offer subject to a longer settlement (6 weeks or so) so that I can get contracters to come in to measure up before settlement to save time.
But then it dawned on me, is it possible to actually do the renovations prior to settlement so that as soon as the property has settled I may let it out at a higher price without having the property empty for too long.
What are the risks involved? (what if the property doesn’t end up settling for unforseen circumstances and i have already started the rejuv.[
]Any suggestions are greatly appreciated.
Always set your goals further than you can reach
– Then stretch that little bit furtherYes you can do it – take early possession that is. It is your risk and can only be done after finance is approved. Note some conditions on settlement will be made void by doing this. Also make sure you have the place insured as it is your responsibility once you have taken the keys!
I have done this with my latest place and should work a charm.[8D]
Hey Young Gun,
why only 6 weeks ? I usually try for a minimum of 60 days that allows me heaps of time to get in and do work on OPM (Other People’s Money). The only real hitch I can see apart from what Deanjp said is make sure you pull the deal off. I am sure if I was selling and someone had done work to my place and then asked for an extension I would give it but I know a lot of vendors who wouldn’t. All of a sudden they have a property worth a lot more and it has cost them zero….Enjoy
AD [:0)]“Carpe diem, quam minimum credula postero.”
Lat., “Seize the day, put no trust in tomorrow.”
-Horace, OdesHi Young Gun, we renovated prior to settlement. It was a deceased estate which we stripped out of carpet, painted, polished floors, new second hand kitchen, bathroom and laundry, cleaned yard. Had an excellent agent who liaised with the vendor. We also replaced a timber floor in one of the bedrooms as Aussie would not settle until this had been done. Now tell me if the house had not been vacant how on earth would we have been able to do this??? Anyway it worked well and the good tenants have been there 2 years. Anna
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