Disasters

[evensteven]

From: Even Steven


There have been a lot of posts in this forum by people who have done really well with their IP's but I'm sure that's just one side of the coin. Would any investor's out there be willing to share their disaster stories with us so we can get a balanced picture?

 

[simonjulie]

Reply: 1
From: Simon and Julie M


Four years ago we bought the house from hell. We had to evict the creatures that had made it their home. We had to remove rubbish and bushes to find the house and remove unapproved structures. We took a month to clean it up and get rid of the smell. We then moved in to start renovating. Debt collectors and police came looking for previous tenants regularly.

Two years on the house looked great and we were very happy with it. We put it up for sale and it sat on the market for over four months. We couldn't give it away so we rented it out and moved on.

Now, another 2 years have passed and that property has more than doubled in value and is achieving an excellent rent with great tenants in place. What seemed like a lemon two years ago is now a gem.

Today's disasters may be tomorrow's gold mines. It's depends how you react to disasters.

Polyanna

 

[Michael Croft]

Reply: 1.1
From: Michael Croft


Not sure I should admit to this one. Bought a 80 year old place less than 1 km to the cbd with the intention of doing a reno and holding.

The walls were pretty bad much cracking to the render and plaster work. I can fix it I thought to myself. Discovered that the cavity brick house was built on brick footings on a clay pan with highly reactive soils. Before I'd finished one end of the place the other was cracking again.

Completed the reno in double quick time and put it on the market with the result that I only made $28k on the deal after all expenses incl cap gain - that's the good news. The bad news was I missed out on two fantastic deals in the process (the ones that got away)which each cost me an easy $85k, Ouch!

Not one of my better days as a building inspector but in my defense I couldn't see the footings as there was no sub floor access (I cut a hole in the floor in a cupboard after I bought it).

Michael Croft

 

[WebBoard]

Reply: 1.1.1
From: Regina Regina hoeppner


We had an archicentre inspection done on a property we purchased, trying to do the right thing. He completely missed old damage to the living area floor, which had to be replaced and relaid, also damage to cross beams. He missed the fact that the bungalow had an inside gas hot water attached to the outside, which is dangerous(cost us $520).
We are still pleased with the property, location and size(more than 1000sqm.),hoping to strata title at some stage.
I am still waiting on a response from archicentre, I dare say it will be the usual "no liability" reply.

 

[ericwill]

Reply: 1.1.2
From: Eric Williams


I have been looking to increase my property portfolio. Using local agents I located a house in the Redcliffe area of Brisbane. I chose a house with a large piece of land negotiated a price and called in the building inspector. Extensive structural damage and TERMITES in large numbers .

I tried a newer house closer to the city sinking piles, termites, water damage and broken roof timbers. Move on.
I moved on and kept looking and found another house. Called in the Inspector TERMITES again.
My wife said that house hunting was getting expensive, because of the inspectors fees.
My thoughts are- a small price compared to buying expensive house repairs. The owners were not interested in negotiation. Waiting for that person that buys without looking.

I'm still looking with fingers crossed my next buy will it be termite free??

Eric W.

 

[WebBoard]

Reply: 1.1.2.1
From: The Wife


All houses have termites Eric. The question you should be asking is, "are they active or not"?

Cheers, TW

~If the report comes back with no termites, I dont pay the bill, they did it wrong-anonymous~