First home buyer - need your urgent advice

[gprp]

Gday ,

The time has come .
We've been renting for the last two years , our contract is due to expire in July and the landlord would like to raise the rent from $415 to $450 p.w.
It will absolutely unwise to continue the rent . We can afford the price mark up to 500K and we have 25 % deposit ( term deposit until 20th August)

We've just started to search in Melbourne North-Eastern suburbs - Greensborough , Watsonia North , Briar Hill , Macleod and Viewbank .

I need your prompt advice regarding the following option :


1) Saturday.
We've inspected the property - REA price range $440-$510K, value $480 (sure )

Sell by Set day next Thursday .
4 bedrooms , 2 bathrooms , 3 levels , external decking on the first floor and a huge swimming pool on the backyard .

Inspection: 3 couples including us, 2 couples went away after 5 min.
I've mentioned to REA that I would like to give an offer probably in range $450-460K .

Monday .
Call from REA. I've asked to submit section 32 .
The 02/08 valuation shows the price for the land is $280K, land and house $430K.
I've spoken to my solicitor , his concern was about the permit for the swimming pool and the decking .

Tuesday.
Call from REA. I've asked regarding the permit for the decking and the swimming pool . Apparently the pool have been constructed 23 years ago , and the decking only 2 years ago - no permit , but Vendor says it's compliant with Australian standards

I have 5 y.o. child , consequently we will need to install a fencing , as well as a safety cover to protect the child.
Agent is pushing to sign the contract note to “secure the property” . Sure , I am so fearful ….

Questions:
1) I called to our City Council today for clarification , they’ve mentioned to me that if it’s been more than 7 years since the construction, the Vendor is not obliged to comply with the standard and they don’t have any info about the decking .

REA suggested today to ask City Council to visit the dwelling and check the compliance and costs involved.

As a purchaser , I will be responsible to get a relevant permits from the council and it could be a difficult and expensive process .
What is the right way to handle it ?

1) It looks like the vendor doesn’t have any other offers and our cost to install the fencing and protection might get to 10K .

I would like to offer $435-442K at the moment .

I have a multiple offer form from the agency . REA suggests to sign the contract note to secure the property , however I think he’s expecting a different price range .
I don’t want to lose 0.25% and I am definitely not looking to get into adventure .

Sorry for the long topic , I really need your advice , since I am a newbie

Rgds
gprp

 

[Trogdor]

Is there a question in there somewhere?

 

[Belu]

i think so, but can barely see it.

Why do you need council approval on the decking? Are you going to sell it soon? When you do can you just say its older than 7 years? can the vendor?

to be honest it doesnt look like you are sure on your price. you started off at 450-460k and a couple of paragraphs later were as 435-442 which is very specific.

My suggestion is go in at your lowest, reasonable, price and go from there. you are only going to negotiate up.

Regards,

Ben

 

[Bradsdad]

The pool fencing could be used as a as a bargaining tool. The decking however is a different matter. If it's not compliant you may need to remove/alter it. I'd want to know the costs involved (if required) B4 signing anything.

 

[Posnow]

Easy...

If there are no other buyer's around offer $438K. Tell them you will need to either get rid of the pool or get it compliant which is going to cost you quite a lot. Worst case scenario - they don't accept, or someone else offers more - well, there are plenty more properties out there. If it takes you another month or more to find one and you'll saved yourself 10,000 or so, I think it's worth it. Go on, take the risk!
And let us know how you go.
Cheers,
Posnow
PS Picked up my last 2 bargains by being stubborn and patient!

 

[gprp]

I am sorry again for the long topic, I do realize it's a bit hard to digest .

Why do you need council approval on the decking? Are you going to sell it soon? When you do can you just say its older than 7 years? can the vendor?

I guess the problem is that I don’t understand the process completely. What are the legal consequences if the swimming pool and the decking don’t have the permit from City Council ? Do I have to pay some fees after purchasing ?

to be honest it doesnt look like you are sure on your price. you started off at 450-460k and a couple of paragraphs later were as 435-442 which is very specific.

My suggestion is go in at your lowest, reasonable, price and go from there. you are only going to negotiate up.

You are correct . I am not sure on the price , however I’ve started to take into account the additional costs involved , such as the fencing etc

Right now I don’t believe that the Vendor have any additional offer and many people are not so keen about the swimming pool due to maintenance costs , therefore I think I am on the right position to negotiate

Rgds
gprp

 

[gprp]

Thank you all for your prompt response .


The pool fencing could be used as a as a bargaining tool. The decking however is a different matter. If it's not compliant you may need to remove/alter it. I'd want to know the costs involved (if required) B4 signing anything .

My question is simple - where and how I suppose to check if the decking is compliant and the possible cost ?

I will let you know the outcome

Best Regards
gprp

 

[travelbug]

If council know nothing about it- it's not passed (whether it's compliant or not is not relevant)
Tell the agent that you want a compliance certificate for the decking. The owners can apply to get one from council.

Even though the pool is old I think you will still need to fence it (check with council- it varies in different councils). If the owners get council out about the fence they are sure to comment on the pool.

If the pool is so old be aware that the cost to repair any faults could be as much as a new pool. Are you willing to do that?
We had to replace ours or try to fill it in. Major pain in the butt.

 

[Novar]

You can probably get a clause written in the contract saying you want council comformation of compliance with regulations. Ask your solicitor.

I know in Qld it is a common clause.

 

[craigb]

GPRP, ok then the Pool needs a fence , with out a safty fence and gate with a strike lock for kiddies this is not complient to the current standards, so they lie on that one!
The deck may or may not be approved, if its hiegher than 1 meter from the ground it will require a safty railing to be complient, to as 1684-1992 timber framing code, but this is an easy fix, if its required,
$10k for the pool fencing , i do not think so, you can get cheaper c/bond pool fencin from bunnings,
So the price??? i do not know what you are asking their , as i don't know the area, perhaps your in need of some sort of confidence boost, but in the light of things , if you like the home then go with the deposit, ??/ hope this helps ??

 

[gprp]

Thanks L&G ,

Craig , you're absolutely correct , I've spoken to the City Council today

Rgds
Gprp