Done OK I think

[Bullseye]

I have just had a contract accepted on the following :-

Queenslander with besser block ground floor and tiled roof on double block 809 m2 on 2 titles. Building in good condition - building inspection today.
Building consists of 3 x 2 bedroom & 2 x 1 bedroom flats.
Close to transport 100 m to bus stop, within 5 mins walk to 2 rail stations. Close to golf course.
Subject to Building & pest (14 days), finance (30 days)
Settlement 40 days

Asking $635,000
Contract for $600,000
Purchase costs including stamp duty & borrowing costs of $ 27,000
Rental return of $ 780 per week which I'm told is $50 to $70 under market.

Think I've done OK with this one. What do you think?

 

[duncan_m]

So its a house split into small flats/units?

what would the house have been worth if was still "just a house".. ie not split up?

 

[agent 86]

Bullseye,

A couple of things.

Check with council to see if building legally flats.

Lots of old Qlders blocked in underneath but not legal height etc for dwellings.

If something happens to it (fire) is it in the correct zoning for it to be rebuilt???

 

[see_change]

where ?

Where ?

1 min from Brisbane CBD or Mount Morgan ?

See Change

 

[willair]

Think I've done OK with this one. What do you think?

Bulleye,
I agree with everything above,a simple call to the BCC will tell you all
the facts about this property.Just keep in mind that if the property
is in inner city brisbane, that you can still buy blocks of 6 brick flats
for under 700k,some already strata Titled, this is only my opinion
but the difference with a QLD's split into seperate flats, compared to
the set up you intend to buy is huge,but it will depend on the area,
the UCV on the land content,and if you can split the block with
the new BCC rules in place..
good luck
willair..

 

[Chilli]

Hi willair,
If you come accros 6 brick unit block inner city under 700K can you let me know (if you are not buying them yourself of course) I have reli who are looking.
ta

 

[Bullseye]

Thanks for your comments.

Flats are registered with BCC.
There is a cleared single block for sale in the street for $ 245,000
Property for sale across the street on single block for $350,000
Street is being gentrified.
Property is in Wynnum Qld. 20km from CBD, 1 Km from Moreton Bay.
Zoning is Res A - A risk I know but I figure that if it burns down as long as I have enough insurance I may get my fingers burnt but not by much.
Property was listed 4 months ago for $680,000.
Building inspection this morning confirms that it is a solid Q'lander all hardwood, terracotta tiles (3 cracked) No settlement visible to blockwork. "Very well built" according to the inspector.

It's really the yield that I'm interested in. Happy to take the risk with it burning down. I will hardwire smoke alarms though when we settle.

 

[wylie]

I think Res A and Res B no longer exist, since the City Plan changed from the Town Plan.

Wylie

 

[willair]

Zoning is Res A - A risk I know but I figure that if it burns down as long as I have enough insurance I may get my fingers burnt but not by much.
Property was listed 4 months ago for $680,000.

Bulleye,
imho,
These flats should already have wired/ fire safety in place if not
and if you have a contract in place then contact your Solicitor
and ask him why you do not have proof of notification of
installation of a approved safety switch and what fire safety
setup is in place..have you had this property valued?
willair

 

[Elizabeth L]

Bullseye
I think you've done well. If it's the same property - we offered extended settlement, but they weren't interested. Nice yellow/cream coloured house is it??

Cheers
EL

 

[Bullseye]

Bulleye,
imho,
These flats should already have wired/ fire safety in place if not
and if you have a contract in place then contact your Solicitor
and ask him why you do not have proof of notification of
installation of a approved safety switch and what fire safety
setup is in place..have you had this property valued?
willair

Property has approved safety switches in place and does have smoke alarms but the old type that are not hard wired. I am not worried about fire, I've already had one of those in a rental and came out better off as a result. The problem is that if it burns down totally I won't be able to build flats back on the block due to the zoning. Old Res A or low density residential in the new.

 

[Bullseye]

Bullseye
I think you've done well. If it's the same property - we offered extended settlement, but they weren't interested. Nice yellow/cream coloured house is it??

Cheers
EL

Yes it is a yellow / cream building. undercover parking at the rear with a kind of lockup.

Vendors were very slow to respond to anything. We actualy wanted a longer settlement but were quite happy with 40 days in the end. I think the vendors had some bridging finance in place and became a bit more motivated. We first made them an offer between Christmas and New Year. The contract has lots of crossing out on it.