Hiya everyone,
Firstly just a rundown(pun?),i had a look at a property yesterday which would become my ppor.
The prop is on a 3 unit lot with common driveway,2 owner occupiers maintain there props and vendor hasn't.
Rented out for the last 30yrs,the vendor has done no repairs or maintained the property.
Vendor wanted to rent it out 'as is' with the same agent and agent told the vendor 'no',find another agency or sell it.Also,owners corp hit the vendor with a 10k 'scare tactic' bill with a 28 day notice to fix misc repairs,knowing full well he would not fork out $0.01,hence why vendor put it on the market.The 10k bill is purchasers responsibility but that said it's nothing more than a furphy BUT i'll use it as a 10k discount off my offer.
So before i make an offer,could someone give me a approx cost of repairs needed doing from my own obversation.
No doubt a B&P inspection would pick up more.I'm thinking also,maybe to offer no B & P inspection as a bargaining chip and get a builder or someone to come along @ a 2nd inspect and go 'bang' this is approx what your up for.
List of repairs etc and issues in no particular order:
Tree removal:The tree is a meter from the back of prop on a slope.Maybe 20meters high,half a meter wide,access a bit difficult.Removal is warranted.
Approx tree removal cost?
Gutters need clearing out due to the tree.Gutter and roof appear sound.
Garage?Was a carport,has a roller door and plywood on the sides.Patch work at it's best.Needs to be done properly.
Balcony-Due to rot,instead of putting in new posts,posts have been cut in half and joined with another-patch work again.
Balcony itself needs some repair,not a biggy though.Personally though,i'd replace it.
Loungeroom-Rot in window sills etc-not sure here how far the rot has gone,window frames may need replacing?
Old disconnected gas heater in loungeroom,needs removing and fill in or ornate fireplace?
Has also gdh and it will need to be checked.Also,some minor cracks(3) in the walls ie:roughly 30cm from ceiling down wall,don't know if this indicates movement?
I've looked under the prop(has storage underneath)and appears sound/built to last but....
3 x windows need replacing.
Approx 4 doors need replacing + 2 screen doors + window screens.
There is some minor 'spot' external rot but nothing major but.....
Kitchen is outdated/really really basic but functional 'as is'.I'd reno kitchen.
Half lino/half carpet in kitchen,as well carpeted through out prop.Out dated carp/lino,25ys +?I'd remove and polish floorboards.
Removal of disused antenna pole and clothesline.
Bathroom-out dated but functional.Needs a minorish reno but have found damp where washing machine hose runs off.
Further inspection needed.
Misc-Some fencing needs to be fixed + some clearing of overgrowth,2 fallen rotted trees.
Hire skip
_______________________________________________________________________________________________________________________
Some of the repairs i've listed i could do myself,well most,so basically i want to present a 'fair' offer minus the 'approx' costs of repairs ie:minus 10k owners corp furphy minus 'professional' repair costs.
I'd also offer some favourable terms for the vendor ie:30 day settlement,10-20% dep(don't know if a bigger dep would make a diff),subject to finance(may rule this out if favourable to the vendor,as finance aint an issue).Also subject to B&P inspection(again if favourable to the vendor,i may rule this out as per 2nd inspection with builder etc).
Asking 425-450k,imo it's worth 405k 'as is'.Reno would bring it up to a 445k plushish.Previously vendor had listed @ 475k(dreamin).
Also,vendor has gone through a divorce and moved back to viet.I wonder if an offer with some lucky numbers would help eg: offer 408,888?
Anyhow,though this prop would be a ppor,i'm attaching no emotion and if offer unaccepted,i'll walk,wait for spring and beyond, when there's more decent stock.If i can't find a ppor @ my price range,that is below market and ticks the boxes for my requirements,i'll just rejig and look for an ip in other markets.
Any feedback,suggestions etc would be much appreciated,
Cheers Spades.
Firstly just a rundown(pun?),i had a look at a property yesterday which would become my ppor.
The prop is on a 3 unit lot with common driveway,2 owner occupiers maintain there props and vendor hasn't.
Rented out for the last 30yrs,the vendor has done no repairs or maintained the property.
Vendor wanted to rent it out 'as is' with the same agent and agent told the vendor 'no',find another agency or sell it.Also,owners corp hit the vendor with a 10k 'scare tactic' bill with a 28 day notice to fix misc repairs,knowing full well he would not fork out $0.01,hence why vendor put it on the market.The 10k bill is purchasers responsibility but that said it's nothing more than a furphy BUT i'll use it as a 10k discount off my offer.
So before i make an offer,could someone give me a approx cost of repairs needed doing from my own obversation.
No doubt a B&P inspection would pick up more.I'm thinking also,maybe to offer no B & P inspection as a bargaining chip and get a builder or someone to come along @ a 2nd inspect and go 'bang' this is approx what your up for.
List of repairs etc and issues in no particular order:
Tree removal:The tree is a meter from the back of prop on a slope.Maybe 20meters high,half a meter wide,access a bit difficult.Removal is warranted.
Approx tree removal cost?
Gutters need clearing out due to the tree.Gutter and roof appear sound.
Garage?Was a carport,has a roller door and plywood on the sides.Patch work at it's best.Needs to be done properly.
Balcony-Due to rot,instead of putting in new posts,posts have been cut in half and joined with another-patch work again.
Balcony itself needs some repair,not a biggy though.Personally though,i'd replace it.
Loungeroom-Rot in window sills etc-not sure here how far the rot has gone,window frames may need replacing?
Old disconnected gas heater in loungeroom,needs removing and fill in or ornate fireplace?
Has also gdh and it will need to be checked.Also,some minor cracks(3) in the walls ie:roughly 30cm from ceiling down wall,don't know if this indicates movement?
I've looked under the prop(has storage underneath)and appears sound/built to last but....
3 x windows need replacing.
Approx 4 doors need replacing + 2 screen doors + window screens.
There is some minor 'spot' external rot but nothing major but.....
Kitchen is outdated/really really basic but functional 'as is'.I'd reno kitchen.
Half lino/half carpet in kitchen,as well carpeted through out prop.Out dated carp/lino,25ys +?I'd remove and polish floorboards.
Removal of disused antenna pole and clothesline.
Bathroom-out dated but functional.Needs a minorish reno but have found damp where washing machine hose runs off.
Further inspection needed.
Misc-Some fencing needs to be fixed + some clearing of overgrowth,2 fallen rotted trees.
Hire skip
_______________________________________________________________________________________________________________________
Some of the repairs i've listed i could do myself,well most,so basically i want to present a 'fair' offer minus the 'approx' costs of repairs ie:minus 10k owners corp furphy minus 'professional' repair costs.
I'd also offer some favourable terms for the vendor ie:30 day settlement,10-20% dep(don't know if a bigger dep would make a diff),subject to finance(may rule this out if favourable to the vendor,as finance aint an issue).Also subject to B&P inspection(again if favourable to the vendor,i may rule this out as per 2nd inspection with builder etc).
Asking 425-450k,imo it's worth 405k 'as is'.Reno would bring it up to a 445k plushish.Previously vendor had listed @ 475k(dreamin).
Also,vendor has gone through a divorce and moved back to viet.I wonder if an offer with some lucky numbers would help eg: offer 408,888?
Anyhow,though this prop would be a ppor,i'm attaching no emotion and if offer unaccepted,i'll walk,wait for spring and beyond, when there's more decent stock.If i can't find a ppor @ my price range,that is below market and ticks the boxes for my requirements,i'll just rejig and look for an ip in other markets.
Any feedback,suggestions etc would be much appreciated,
Cheers Spades.
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