Non approved rooms

Hi members of SS I am a plumber as you can tell by my title.
I feel I need to introduce myself before I ask my question as this is a small community of like minded people.
My name is Brad and I love old property circa 1920 with city views and also being a land lord.
I have self managed my father’s rather handsome property portfolio since the age of 17 proved a great wealth of knowledge.
I live very frugal save to invest and have come out very successful due to buying shares after the market crashed.
Now next step age 20
Purchase a low end rental property
My finance is fine and the property will be neutral geared or positively gear depending on if I up the rent this is not the problem.
The Problem is it is a build in house to a slope and the landlord has built a bathroom on the lower level and another bedroom.
I know I can remove the rooms or make them to council standards easily but the bathroom is a tear down the drainage is not to my standard.
Now is this property able to be purchased by myself with the non approved rooms.
Or on sold by me at a later date.
I plan to lower them on the price for this so I can obtain my next property sooner.
I just need as much info before I sign anything or make my offer.
Thank you

Brad
 
A bit off topic, I know.

But I'm curious, did you say you're 20 or 19 going on 20?

Sorry I like seeing young people around here, unfortuntely no real answer to your question though.

Welcome to SS and I'm sure you'll be able to get an answer out of the more experienced guys off here :)
 
I turned 20 at the end of may.

Great! I'm 18, so it's new and different when people are close to my age!

Oh, and I think after re-reading your post, I think that you can buy the property and negotiate a lower price as it is unapproved and would need work done to bring up to standard, in saying this however you should make sure you calculate the amount it will cost to bring the property up to standard and holding costs before you can get a tenant in the property.

Also there's another thread going at the moment about the roof height on an IP so probably make sure the roof height fits with council regulations because I presume this you won't be able go fix without a heafty price tag. So perhaps watch that to see what people say.
 
My finance is fine and the property will be neutral geared or positively gear depending on if I up the rent this is not the problem.
The Problem is it is a build in house to a slope and the landlord has built a bathroom on the lower level and another bedroom.
I know I can remove the rooms or make them to council standards easily but the bathroom is a tear down the drainage is not to my standard.
Now is this property able to be purchased by myself with the non approved rooms.
Or on sold by me at a later date.
I plan to lower them on the price for this so I can obtain my next property sooner.
I just need as much info before I sign anything or make my offer.
Thank you

Brad
Welcome to the fourm,where is the property i looked at something like this in Annerley a few weeks ago,and what are you trying to do with this property..willair..
 
Whether the rooms are complying or not complying, is not as big an issue today as it used to be. You are right though, they have less value than if they were complying. You are also right, if you can get them to comply, you will increase the value. Be careful not to overcapitalise. Best wishes with the investment.
 
Whether the rooms are complying or not complying, is not as big an issue today as it used to be. You are right though, they have less value than if they were complying. You are also right, if you can get them to comply, you will increase the value. Be careful not to overcapitalise. Best wishes with the investment.

To me it is a Big deal
I will not be living in the house and I am accountable for the property and the ability to comply with insurance.
 
Look into title insurance. As I understand it offers a level of cover for non-approved structures.

Maybe someone can elaborate.
 
You can purchase it like that and you can also onsell it like that. The potential risks you run though are: someone might dob you in and the council might issue a fine and also if something goes wrong with the property, having un-approved changes there might make your insurance void.

If they are not huge changes that need to be done, I would personally look at the option of making the required changes and get permits so that you are covered and can onsell the property or get it re-valued with approved changes for a margin.

Wishing you every success, Ana
 
Sorry Plumber, I was referring to council approved. I am not aware that not being council approved causes insurance issues. That being said, I have not seen those words in policies that I have read, there may be some. My comments reffered to "typical" buyers view. Being in an older area, so many of the properties that I see, have not council complying structures. They do sell, and yes some buyers will not touch them however a lot do, and see value. Not complet value mind. If non council complying is an issue with you, then I accept that is you view, and if you can rectify with in reasonable bounds o cost, then go for it. If it will go over the top, then perhaps look else where. Each to their own. Again best wishes for your endeavours.
 
Sorry Plumber, I was referring to council approved. I am not aware that not being council approved causes insurance issues. That being said, I have not seen those words in policies that I have read, there may be some. My comments reffered to "typical" buyers view. Being in an older area, so many of the properties that I see, have not council complying structures. They do sell, and yes some buyers will not touch them however a lot do, and see value. Not complet value mind. If non council complying is an issue with you, then I accept that is you view, and if you can rectify with in reasonable bounds o cost, then go for it. If it will go over the top, then perhaps look else where. Each to their own. Again best wishes for your endeavours.
"
Thank you


The bolded part is my main concern I am going to visit the property this weekend and go over with a fine tooth comb with a builder friend of mine and my father who is also a retired builder from decades ago
 
You can purchase it like that and you can also onsell it like that. The potential risks you run though are: someone might dob you in and the council might issue a fine and also if something goes wrong with the property, having un-approved changes there might make your insurance void.

If they are not huge changes that need to be done, I would personally look at the option of making the required changes and get permits so that you are covered and can onsell the property or get it re-valued with approved changes for a margin.

Wishing you every success, Ana

Ana are you that Couple who was on CH7 a current affair with renovation for profile and Stuart zadel was on there as well.
If so I am impressed and you inspired me to renovate the house I purchased not much before I viewed you on TV.
 
The property is on the North side of Brisbane in Ferny Grove.
That's ok,just wanted to ask the area,i don't know that place,but for a young man with a plan you will do well,read -read -read,ask every question you are unsure about,and trust noone who will try to sell you experience,your Father is the one to learn from..good luck willair..
 
The main issue with non-habitable rooms is that you can't include them in the bedroom count in your advertising. So the downstairs room could be legally sold with it described as a "rumpus room" or something like that, but you can't include it in the bedroom count.

Purchasers and/or tenants can use it as a bedroom if they want and I don't believe that creates any insurance issues. The only issue, as far as I'm aware, is with regards to advertising (for sale or lease).
 
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