IP with Unapproved Renovation

Hi, just came across an IP in WA which is about $60-80k below market value. Found out that the previous owner has converted original garage into additional bedroom & added a 3rd toilet to this room. All these works have not been approved by the shire though they are aware of it (agent said so).

What's the risk of buying this property?
Is it worth to buy this property & then get the approval?
What process or paper work would be required to get the shire approval?
How much would this cost?

Awaiting your frank feedback before deciding what to do.
Thanks
 
My advice for what it's worth is ..... get over to council in person and have a chat to the relevant dept. Only then will you know if it a viable deal or not.

I can almost guarantee that if the work has not been approved by council with the correct DA procedures then they will be extremely picky and will probably make life very difficult for whoever has to go through the process.

Mystery
 
Hi, just came across an IP in WA which is about $60-80k below market value. Found out that the previous owner has converted original garage into additional bedroom & added a 3rd toilet to this room. All these works have not been approved by the shire though they are aware of it (agent said so).

was the house a 3 bedder and he converted it to a 4 bedder?

Is the property now without a garage?
Can the additional bedroom be easily turned back into a garage?
 
Via REA ask owner to get these additions approved if you are interested as there will be costs incurred and they may not be approved.

I wonder how you go getting insurance to cover non approved additions.


Sheryn
 
was the house a 3 bedder and he converted it to a 4 bedder?

Is the property now without a garage?
Can the additional bedroom be easily turned back into a garage?
Hi BV,
Yeah the original house was 2 bedder & the owner converted the 1 car garage into another bedroom & installed a 3rd toilet at the back. The original garage was under the same tile roof as the whole house, the owner just added the front wall to enclose the additional room. The relatively large shed at the side of the house is being used as a garage instead.
 
If the alterations have been done to Council standard and meet all requirements then retrospective approval should be simply a matter of paying the relevant fees.

If not, Council could order demolition.

If really keen on this property, I would insist on your solicitor including a clause in the contract allowing you to gain Council approval before settlement. The extra $$$ it may cost will be well worth it.

However, the discounted price may be a reflection of the risk of the Council ordering demolition. Hard to believe a vendor would not gain the relevant documentation if it was easily done.
Marg
 
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