Hi all
I have started looking into the possiblility of purchasing 4 units. The building is quite run down on the outside (I would suggest it is about 30-40 yrs old) but quite respectable on the inside. The owner is selling the property himself because of a seperation, he has had it for sale for approx 1 year and by the sounds of it needs to finalise things asap. The asking price is $299K and the rent return is $560 per week for the 4 units combined.
I am thinking that the units will need to be pulled down sometime, has anybody had alot of asbestos removed and what was the cost? In a previous project I needed to remove a small laundry containing asbestos and it cost $5K to remove. I havn't had building inspection yet.
Does anybody know about putting hardiplank over the cement sheeting? (asbestos) Cost? I'm wondering whether it is worth doing this?
The owner has also been self managing the property and none of the tenants are on written contracts. I see there are a few "problems" with this property but I guess that is what I'm looking for a problem that I can rectify at the right price of course. I would want the tenants all on written contracts before I bought and I would ask my solicitor about how to write a clause for this.
Thanks, any help would be appreciated.
bfree2live
Hi,
I would call around and get some quotes. It sounds like it is regional (?) and it may cost a bit more because of that.
It is my understanding (get more info tho) that as long as asbestos is contained and safe you can leave it there. I understand that you may need to demolish but as far as day to day living as long as it is contained you can leave it there. I'm pretty sure it needs to be marked if in an area that it could be exposed (might be thinking of something else tho)
As far as the tenancies go, make that part of the sale. The only thing is if they are long term tenants and there is no bond, you may have some trouble getting bond lodged for various reasons. But this is for the vendor to deal with, you just need to be aware of it. Solicitors can word most things to suit you it just depends if the vendor will accept.
Will you be self managing? Or getting an agent? Maybe get some a rent appraisal done too, take a pm along to have a squiz make sure that the leases are at market rent rather than way below because of vendor management.
Keep us posted!
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeThanks DWolfe
Yes it is regional. Yes, I'm considering self managing if I purchase. I'm in the process of getting my real estate licence so I am confident that I will be able to self manage.
I think I'll get a building inspection done and go with the building inspector. Even if I don't end up purchasing it will be a good learning experience, regarding the identification of asbestos, etc.
If I purchase it I want to purchase for land value only. Alot of research to do tomorrow.
bfree2live
I have had a huge shed removed that was asbestos and on the same property a bathroom reno which involved asbestos removal. The shed was about 4 carports wide and closed in on 3 sides (to give you some idea of the size of the job). We removed the shed as it was damaged and unslightly, the removal costs were about $1000 of which most of the cost was the asbestos removal. This was a regional job and the local salvage company had an asbestos removal license. It was done very professionally. The bathroom asbestos removal was done by a builder who discovered it when renovating our bathroom – removal was much more slap dash in the way that he didn’t wear protective gear as he said he would maintain the pieces in whole sheets! I know that if the sheet is whole the safety isn’t an issue but I would be happier to err on the side of caution!
Ruth
Unless the rent is absolutely vital you may be best served by gaining vacant possession, removing the asbestos, doing the refurbishment & getting new tenants at the higher rent.
Thanks Ruth
I have read a few other threads regarding asbestos on this forum. It really bothers some people and other people don't worry about it. I think that I would prefer to take out the asbestos, just wondering whether it would be worth doing this or just pulling down the whole building and re building. The building is old and it might not be worth doing……
bfree2live
Thanks Scott No Mates
Yes worth considering.
thanks
bfree2live
Hi bfree,
You may find that a new construction costs you more than the new properties are worth…due diligence.
What parts are asbestos?
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeDid you know it's possible to claim the cost of removing asbestos in an IP as a tax deduction? There is an ATO ID on this: ATO ID 2004/720
I'd say you would need to rent the place out for a while before doing the work.
Scott
DWolfe, I have only done a drive by at this stage, all of the external walls, not sure about internal or roof. I know that the dividing walls are brick.
Depreciator, thanks for the tax tip.
bfree2live
I have been on the internet for a few hours researching asbestos removal, etc and this link has alot of information:
http://www.deir.qld.gov.au/workplace/subjects/asbestos/householders/index.htm
Might help somebody else.
I found the information that I was looking for and that is, is it better to remove asbestos or cover it up? (if in good condition) This above document suggests to cover it up (appropriately following safety guidelines which is all outlined in the above link)
Even if I don't purchase these units I now feel reassured about the information that I've read and wouldn't be put off purchasing a property with asbestos in good condition. If the asbestos was in bad condition or a knock down was required I would have to factor in the cost of removal by a professional. As stated in the document above you can remove up to 10 square metres of asbestos yourself as long as you follow the safey precautions.
If I choose to look into these units further I will get a building inspector, see how structurally sound the building is and if it warrants the cost of covering up the asbestos with a non asbestos product.
Another thing that I learnt was that some trades people won't work on asbestos products (don't blame them) even if drilling holes for renovation work. All trades people, tenants and future buyers must be informed of the asbestos even if it is covered up. (future drilling, dry sanding, etc)
I also learnt that the professionals who remove the asbestos take it to a dumping ground where the people at the dumping ground dig a hole and sometimes have to break up the asbestos that is so meticulously wrapped in plastic sending asbestos particles into the air which is what the removal was all about – removing it safely without putting asbestos particles into the atmosphere. A bit of a contradiction don't you think?
I guess if it is covered up with a non asbestos product, you only leave a future problem for a future buyer but I'm more inclined to leave it as is, if it is in good condition (the above document said, "let sleeping dogs lie.") because not even professionals can clean up every single particle of asbestos and I think that it could cause more harm to the person removing it, future inhabitants and neighbours, not to mention breaking up the asbestos and dumping the waste in the ground. As most of us know it is not cheap to remove asbestos, it is good to know that there are other safe alternatives other than expensive removal.
If any professional asbestos removers read this thread I would love to hear your thoughts and experiences.
bfree2live
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