My passion for investing has been up and down but after reading Steves books ive got the courage and the drive to break out of my comfort zone (Thanks man).
My story is simple I purchased managed funds sold then bought shares sold them finally for a deposit and bought a unit in a (Nice area Robertson QLD) then saved and saved bought another two units in a Lower area “Getto” as some people call it(If your familiar with Woodridge in QLD). But it pays ok rent compared to what other suburbs are charging.Now for my question.
Ive just recently sold my unit in Robertson and receive 120k profit. Ive been looking and looking and have come up with two duplexes 4x2Brm houses for 240K each in Woodridge. The rent is 310PW per duplex but after a inspection i have found cracks in some of the walls top to bottom not very big but noticable. The ceiling is sagged but the vendor says he’s gonna fix it.
Because this deal is a make or break for me. I need some direction. ive got two days to come back with a decision and Ive reached a point where i need some guidence. Has anyone come accross cracks in the brick walls? is it costly to fix? What are your opinions on the deal?
Thanks guysHi
The cracks could be caused by a number of problems – could be brick growth, could be foundation movement etc. It needs to be inspected by the relevant professional ie builder or engineer, to be able to determine the cost of repairs. If you submit your offer, it should be subject to inspections, which is a normal condition, but might want to specifically mention the cracks. I wouldn’t be accepting that the vendor is going to repair as they may just do a patch job and hide the real problem.
Based on the info provided, the property will be negative, so you need to look at your current situation and investing goals to decide whether it meets your crieria and comfort level. If you have reason to believe the area will experience reasonable growth, you might decide you’re prepared to bear the ongoing costs.
Good luck
WakeYou’re being pressured.
Time to apply some in reverse. Note to the vendor that the cracks concern you as does the roff (and it should, it may be structural – read Steve’s advice about building inspections).
If the rest of the deal makes sense, consider offering subject to a satisfactory building inspection – if it fails the inspection, deal off and deposit refunded.
Set yourself a reasonable amount of time for the inspection and find a reputable inspector.
I agree with wake about the ceiling – get it inspected AS WELL AS having the vendor fix it (again to a professional standard). The few hundred dollars one or two inspections will cost are well worth it.
You guys are right i was being pressured.
I took your advice and took out a building inspection. Before I had a chance to Get a inspector into the property the Vendors wanted a 5000 dollar none refundable deposit for each duplex. I had a feeling i was being ripped off because 1 there was no other bidder 2 the price isn’t bargin basement and 3 the houses have been on the market for some time. To cut the story short i didn’t buy the duplexes and I refuse to do business with a realestate agent with no intergrety. Thanks for all your help guys (Who wrote) with words of advice it really helped me.A word of advice to other novice investors Don’t feel you need to be pressured into any deals take your time there are always deals out there and be especially VERY warey of none refundable deposits.
Phana
Be very careful on the South Side of Brissie at the moment as many vendors are trying to get purchasers to offer non refundable deposits on the moment with a view to capitalising on the current prices.
Usual recommendation “If it looks too good to be true it is probably is just that”.
Happy to crunch some number for you if you want to take this off line and email me.
Cheers Richard
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
I agree with Richard, don’t rush into anything..
Roy H.
L.R.E.A., Dip FS (FP)
Guardian Property Specialists (GPS)
http://www.gpsnetwork.com.auNON refundable deposits??!!
I laugh at the audacity of these people!
I say wave Bye Bye
Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
ive never heard of such a thing, remember to always state that your purchase is subject to finance !
Phana
PP is correct in Qld always make your contract “subject to finance”.
Whilst, at long last we have the “Cooling Off Period” in Qld some agents / vendors will try and get you to get your Lawyers to waive this.
Remember if you cancel a contract by using the Cooling Off period there is a 0.25% penalty.
Don’t rush into things even if you have got your finance pre-approved make it STF.
It is another out of the contract if the terms are unsatifactory to you.Cheers Richard
[email protected]
http://www.yourstatefinance.comIP funding and US property finance
our specialityRichard Taylor | Australia's leading private lender
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