Hi,
What would be the DD required before purchasing an entire apartment building?
The building is a 15-unit strata-titled residential building. (all units are 2 Br units, bldg is 26 yrs old)
The goal is to purchase under or at market value, renovate all 15 units, rent the units out at a higher rent than before renovation, and of course increase the value of the building.
Renovation would include installation of suspended gyprock ceilings over existing vermiculite ceilings, new carpets, new kitchens, new lighting (downlights), built-in wardrobes, new bathrooms, new paint.
Replace/repair damage to roof area.
Is this sufficient:
- Building/strata/pest reports
- Solicitor to check contract
- Structural Engineer(?) to inspect building for any structural problems (cracks, etc?)
- Valuer to do a valuation for entire building
- In terms of finance, would lenders treat this purchase as residential or commercial lending?
- Would a 20% deposit be needed, or would a lender accept a smaller deposit (i.e 5%)
- The purchase would be made as a joint venture bye, say, three parties.
- Is council permission needed to undertake renovation work?
Has anyone done anything similar? What were your experiences?
Thanks for reading this and i look forward to the responses
What would be the DD required before purchasing an entire apartment building?
The building is a 15-unit strata-titled residential building. (all units are 2 Br units, bldg is 26 yrs old)
The goal is to purchase under or at market value, renovate all 15 units, rent the units out at a higher rent than before renovation, and of course increase the value of the building.
Renovation would include installation of suspended gyprock ceilings over existing vermiculite ceilings, new carpets, new kitchens, new lighting (downlights), built-in wardrobes, new bathrooms, new paint.
Replace/repair damage to roof area.
Is this sufficient:
- Building/strata/pest reports
- Solicitor to check contract
- Structural Engineer(?) to inspect building for any structural problems (cracks, etc?)
- Valuer to do a valuation for entire building
- In terms of finance, would lenders treat this purchase as residential or commercial lending?
- Would a 20% deposit be needed, or would a lender accept a smaller deposit (i.e 5%)
- The purchase would be made as a joint venture bye, say, three parties.
- Is council permission needed to undertake renovation work?
Has anyone done anything similar? What were your experiences?
Thanks for reading this and i look forward to the responses