I have recently purchased my first investment property. After the building inspection today, I have been told restumping (approx $6,000) is required, amoungst a few other things.
Is this grounds to lower the price offered? I havent yet signed the contract/given a deposit.
Thanks[
]gen
Firstly what is the purchase price and what is the valuation.
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Gen, welcome to the forums,
Again, the purchase price and valuation would help. You have the option of either, bargining for a lower price, or making a condition on the contract, that the stumps must be replaced before you agree to purchase the property.Hope this helps.
Cheers Matt
“If you do what you have always done, you will get what you have always had.”
“Isn’t it time for a change?”
Perhaps the vendor knows about the restumping, and the price they are asking reflects that. If the price is cheap, how much more do you want to reduce it?
kay henry
Hi gen,
I might be a bit slow, but I’m a bit confused. You say that you have “recently purchased” the property. Then you say you haven’t signed the contract.
Which is it? I think this makes a big difference in what you can actually do.
I agree with kay henry – does the price already reflect the restumping problem? How does the price compare to the asking price for similar houses in that suburb?
If the seller has already taken the problem into account when setting the price, they’re unlikely to budge much. Then again, there’s no harm in trying to bring down the price more, since the property will be harder to sell.
I personally would not buy the property if the price has only been reduced by the cost of the restumping. Why take the risk when you can buy a property without the problem for exactly the same amount it’s going to cost you at the end of the day? There should be a further reduction to take into account the risk and extra hassles that you’re taking on.
Cheers
Elysium-MHi Gen
when you looked at the property did the vendors indicate that the house would need restumping, or was it a total shock when you had the building inspection done. If you didnt know about this then try negotiating. What you need to ask yourself is do I really want this property, if it is a rental do you really want one with structural problems. Many people buy with their heart not their head unless this is your PPOR and you just must have it,look at it as a business decision and do the numbers stack up if you have to spend another $6000. Also check with the builder who did the inspection that if you restump will this put doors and windows out of alignment, make sure it is only going to cost you $6000.
Hope this helps
ErikaI have recently purchased my first investment property. After the building inspection today, I have been told restumping (approx $6,000) is required, amoungst a few other things.I don’t think you have purchase it yet. I make a mistake one when the property need a new retaining wall I just wouldn’t bother to negotiate. 1 week later the real estate agent sold to other $30k more.
Warm Regards
ChanDollars
[Keep going, you’re nearly reach the end of financial freedom]
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