Hi everybody,
I have been looking at purchasing a derelict unit which has current outstanding council orders and requires extenise reno work, eg a new kitchen, replace roof plaster and some tiles, and almost every inspection to deem it suitable to live there.
The inspections include everything from plumbing, electrical, building, removla of plants, fixing of retaining wall, new hot water service, etc…
It will be no small job but the unit is priced accordingly.I am confident that I could buy this place, fix it up and sell for a profit.
However I need to make sure that before we buy it that it has nothing major wrong that will cost me unknown amounts of money.What is my best course of action with regards to this place if I want to buy it but unsure of exaclty how much it will cost to repair?
Is there a way I can add a subject to clause in the contract with regards to the above? Because we certainly dont want it if it is going to be beyond repair.Please help the clock is ticking!
Regards,“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
Hi leewizza,
You are one brave person.
My only suggestion would be to get a builder, plumber and sparky to look at it and give an estimate.
If you have a v good inpection service then maybe they could help.
I always think anything can be fixed up if the structure beneath is sound.
Sounds like you’ll need a big box of paracetomol to get thru this one![exhappy]Giddo
http://www.standrewsplace.com.auKNOWLEDGE IS POWER
Originally posted by giddo:My only suggestion would be to get a builder, plumber and sparky to look at it and give an estimate.
I always think anything can be fixed up if the structure beneath is sound.
exhappy]Thanks Giddo…
should these inspections be done prior to putting in an offer? Is there a way around this? Otherwise it will be expensive if it works out not worth my while.
Also, the structure would have to be sound because it is 1 of a block of 8 units all of the same structure.
[confused2]“Practise doesn’t make perfect. Perfect practise make perfect”.
Lee
Leewizza,
You can definitely put in subject to clauses in your offer. We recently did a subject to satisfactory roof inspection on a property, Offer was accepted but we pulled out due to unsatisfactory report. However, in your position with the unit needing such an extensive makeover, I’d be inclined to get the inspections done prior to putting in an offer otherwise how will you know what to offer? It sounds like a very big project which is bound to turn the majority of buyers off. This could be to your advantage so don’t rush in, take your time and do your homework.
Flatout
Hi Leewizza
You can certainly get building/pest reports done prior to signing the contract of sale. Probably wiser, if you’re the only interested buyer, as the only money you risk losing is the cost of the reports themselves, should there be too many problems. A small price to pay.
If you offer and subsequently sign a contract first, however, you can then use the five day cooling off period in which to get the inspections done. The only problem doing it this way is that, should they come back unsatisfactory during this period and you decide to pull out, then you forfeit 0.25% of the total purchase price to the vendor.
Let us know how you go and good luck!Cheers,
Jacque
http://www.housesearchaustralia.com.au
Totally Independent Buyers Agents- Sydneyhttp://www.invested.com.au Australia’s premier Investor Education site
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