Hi All,
Just curious to know how much or what percentage fellow investors allow for repairs and on going maintenance when budgeting to buy.
I have just exchanged on a 50 year old house on 600sqm in Western Sydney for $500K. I knew going into the purchase that it would obviously need some work, but having just received the building report back there appears to be some area of concern re plumbing and possible rising damp.
I'm sure this is fairly typical of a property this age, and will still move forward as agreed at a favourable price, but just wanting to know what rough measure people use as contingency pre purchase.
2% of purchase price, 5% or more. I know this depends on the house, but the majority of houses in these areas seem to be of fairly similar and age, and seem highly unlikely that I would have found one with no work what so ever. Finding one full stop has been hard enough lol.
Thanks
Max
Just curious to know how much or what percentage fellow investors allow for repairs and on going maintenance when budgeting to buy.
I have just exchanged on a 50 year old house on 600sqm in Western Sydney for $500K. I knew going into the purchase that it would obviously need some work, but having just received the building report back there appears to be some area of concern re plumbing and possible rising damp.
I'm sure this is fairly typical of a property this age, and will still move forward as agreed at a favourable price, but just wanting to know what rough measure people use as contingency pre purchase.
2% of purchase price, 5% or more. I know this depends on the house, but the majority of houses in these areas seem to be of fairly similar and age, and seem highly unlikely that I would have found one with no work what so ever. Finding one full stop has been hard enough lol.
Thanks
Max