Been looking for a while and come across a particular property that suits our profile. It is a townhouse (~5yr old), 14 km N-NE of Melbourne. It sis due to go on auction in a couple of Saturdays from now, but was hoping of a way to potentially purchase prior to the auction, that can lead to emotion and have it go for a higher price. The agent says the est/asking price is around 500K, and that the owner just wants to get out, just making sure he gets his money back, plus interest etc. The townhouse was previously leased - from what I gather by the owner(he was a student), and he subleased to others also. He now lives somewhere else, and the place is vacant. The RE agent estimates the rental to be $500-550 / week. There is a place a few doors down that is renting for $530, but it has an additional courtyard (all else is similar). The townhouse directly next door only leased for $420/week, and when I spoke to that agent, she mentioned that the timing was bad over Christmas, and the landlord just wanted some in there - it was also mentioned that the place was left in a bad state by the previous tennants. This townhouse, however, is in quite good condition, the wife even refering to it as having an new house smell about it.
Looking at onthehouse.com, it appears that the original owner purchased the place for $490K it 2009. I've also noticed from oldlistings websites that the rental per week has gradually reduced in the area - there has been a lot of apartment development in the area over the last few years, but it looks like there is hardly any more land for this to continue happening on. In saying this, the areas looks as though it hasn't seen any growth in units over the last 3-5yrs (based on figures from API mag), and in some instances there's been negative growth.
In a nutshell, the area is appealing, and my belief is that with the scarcity of land, prices will begin to move.
I have 3 concerns/questions:
1. We did an inspection on Saturday Morning and we noticed some "wet spotting) on the bricks on the bottom courses of the garage, adjacent to the external wall of the building. I know that on Friday night we had a major storm where it rained heavy for quite some time, but is this a cause of concern that should be investigated further?
2. In The stairwell, between floors, most of you would be familiar that most builders have a visible line between the plaster from the lower level, and the plaster from the top level of he wall, (i refer to it as an expansion join, but I don't know what its called. I believe its there, so there is no noticeable cracking when there is movement?) Anway, the plaster at the top half of the join(ie from the top floor) appears to noticeably bulge out at the join, ie if you were to run your hand up the wall from below the join, you can feel (and see) that the top plaster panel sticks out about 3-5mm. The horizontal length of the join is about 6 metres, but the are in question is about 1 mtre long. I also noticed that the plaster was patched/painted about 30 cm above this join - I don't know if this was something that may have been like that from the builders or otherwise? (the area in question is to high for a tennant to have knocked something into it, and also, upon pressing on the plaster where the patch is, the plaster does move somewhat. My wife didn't pick this up perhaps I'm pedantic, but nonetheless, didn't look right?
This is on the same wall that had the wetting on the brick in the garage.
Anyway, these two issues may not be anything, but now that I've noticed them they are in the back of my mind. Do any SS members recommend what should be done in this situation? Is it worth getting some form of official inspection done? Can anyone be recommended?
2. Speaking to my father ( he was a RE Agent in the late 80's- early 90's, but quit because it was hard making ends meet - particularly due to high interest rates), he mentioned the best way to negotiate and purchase prior to an auction is to make an offer with a bank cheque at 10% of your price to purchase. He said that by doing this, the RE agent takes you seriously, and then tries to push the sale with the vendor. What are your thought?
- If I was to do this, I would go in with a price in mind of 450K, so a bank cheque of $45?
- This would probably open up negotiation afterwards, ad then i would have an upper limit that I would possibly go up, tied in with the potential rental yield as a guide.
Your thought and criticisms please. What would you do different or better?
Thanks again,
JK
Looking at onthehouse.com, it appears that the original owner purchased the place for $490K it 2009. I've also noticed from oldlistings websites that the rental per week has gradually reduced in the area - there has been a lot of apartment development in the area over the last few years, but it looks like there is hardly any more land for this to continue happening on. In saying this, the areas looks as though it hasn't seen any growth in units over the last 3-5yrs (based on figures from API mag), and in some instances there's been negative growth.
In a nutshell, the area is appealing, and my belief is that with the scarcity of land, prices will begin to move.
I have 3 concerns/questions:
1. We did an inspection on Saturday Morning and we noticed some "wet spotting) on the bricks on the bottom courses of the garage, adjacent to the external wall of the building. I know that on Friday night we had a major storm where it rained heavy for quite some time, but is this a cause of concern that should be investigated further?
2. In The stairwell, between floors, most of you would be familiar that most builders have a visible line between the plaster from the lower level, and the plaster from the top level of he wall, (i refer to it as an expansion join, but I don't know what its called. I believe its there, so there is no noticeable cracking when there is movement?) Anway, the plaster at the top half of the join(ie from the top floor) appears to noticeably bulge out at the join, ie if you were to run your hand up the wall from below the join, you can feel (and see) that the top plaster panel sticks out about 3-5mm. The horizontal length of the join is about 6 metres, but the are in question is about 1 mtre long. I also noticed that the plaster was patched/painted about 30 cm above this join - I don't know if this was something that may have been like that from the builders or otherwise? (the area in question is to high for a tennant to have knocked something into it, and also, upon pressing on the plaster where the patch is, the plaster does move somewhat. My wife didn't pick this up perhaps I'm pedantic, but nonetheless, didn't look right?
This is on the same wall that had the wetting on the brick in the garage.
Anyway, these two issues may not be anything, but now that I've noticed them they are in the back of my mind. Do any SS members recommend what should be done in this situation? Is it worth getting some form of official inspection done? Can anyone be recommended?
2. Speaking to my father ( he was a RE Agent in the late 80's- early 90's, but quit because it was hard making ends meet - particularly due to high interest rates), he mentioned the best way to negotiate and purchase prior to an auction is to make an offer with a bank cheque at 10% of your price to purchase. He said that by doing this, the RE agent takes you seriously, and then tries to push the sale with the vendor. What are your thought?
- If I was to do this, I would go in with a price in mind of 450K, so a bank cheque of $45?
- This would probably open up negotiation afterwards, ad then i would have an upper limit that I would possibly go up, tied in with the potential rental yield as a guide.
Your thought and criticisms please. What would you do different or better?
Thanks again,
JK