Block of units

[Nathan]

Hey everyone, i found a deal of lifetime.

with giving some small detals, i found a property in good area of NSW.

it is a 8 year old unit near water, and rents for 210 pw.

all others in block been selling over last few years between 195k-240k.

i can buy this for $140k, must sell!

catch, i dont have enough time to do strata search and need 2 exchange 66w on monday morning, swooping in before every1 else exchanges (4 other buyers) the strata iis in process of taking the builder to court. as there are some building faults (no waterproofing)

been told a) builder sued and they fix it up b) special levies of $3000 or special levies of $13000 or c) any other figure.

my question is, would you guys buy this property knowing that there is some structual issuue? i know there been 3 others sell this year between 190-205k and im sure they did their due dilligance. also theres 40 in the block.

so in essence im buying from the desperate to pass onto the not so desperate.

what are your thoughts?

i see theres a 50k profit in there...

 

[jackstar]

caveat emptor

 

[Bricks & Mortar]

Nathan,

careful here...
I believe if you purchase the building having known that there is a fault with the building (i.e. no waterproofing/other), hence you get it for a cheaper price, then you may NOT be entitled to getting it fixed when the builder gets sued, or the insurance company does finally foot the bill for the repairs.

You will have to bear the cost of this yourself.
If you onsell it, it would be in your own self interest to highlight the fact to the purchaser otherwise you run the risk of being sued yourself.

 

[alexlee]

my question is, would you guys buy this property knowing that there is some structual issuue? i know there been 3 others sell this year between 190-205k and im sure they did their due dilligance. also theres 40 in the block.

You don't know how much it's going to cost to fix up, and you're planning on buying. What makes you think the people who bought for 200k did their due diligence?
Alex

 

[skater]

You don't know how much it's going to cost to fix up, and you're planning on buying. What makes you think the people who bought for 200k did their due diligence?
Alex

Exactly

 

[Rolf Latham]

Could be the deal of the month...............

or maybe there is a 60 k special levy around the corner................

Id want to know what the $ downside was before committing

ta
rolf

 

[alexlee]

I had a unit where the waterproofing in the roof (top floor unit) was missing (builder's negligence). Ended up costing $8k the first time, then the fix didn't work and the second time it cost $13k (paid for by the BSA, luckily, because it was still under warranty) to fix.

Lack of waterproofing is a MAJOR building fault. Water drips down, damaging the plaster and concrere in your place, and potentially causes shorts in lights that can cause fires. In my case the water dripped down from the corner of the living room. Cornices were damaged, part of the ceiling plaster had to be replaced, window frame was rusted and surrounding concrete bubbling, and it affected the lights as well.
Alex