perth unit - some queries

[mitchp]

Hi,
My wife and I looked at a potential IP unit in Scarborough vicinity today - small number in the block - 10 I think. It's a second floor unit with not bad view. Built in 70's-early 80's. Unit is in need of some reno, but structurally looks ok although the whole block needs paint.
Qu: in order to be clear about potential developments on the block and nearby, would the local council be the best information source? Is there are a standard series of questions I could ask so that I am confident 1) the block isn't going to be levelled, 2) a high rise won't be built next door, 3) a freeway won't greet me at the letterbox in 3 years' time, 4) etc etc? Also, due to the unit's common walls/roofing etc, is a building inspection report as necessary as when one buys a house?
Regarding making an offer for a property, what do forumites suggest is a good starting point as general rule? 10% below lowest asking price seems reasonable...
Cheers
Mitch

 

[marg4000]

Hi Mitch

We have owned units, and I think a small block has many advantages in keeping costs lower.

Some thoughts?

Check out the amount in the sinking fund. This is specifically for the bigger expenses such as painting, which you said is needed. If there is not sufficient, each owner can be hit with a "special levy" to pay for it.

As regards your questions:

1) The block can't be levelled unless all unit owners agree. You will have a say in the body corporate that runs the building.

2) Probably impossible to say. You can check the zoning for the blocks beside you, but there is no guarantee there won't be changes in the future. Don't pay extra for a view if there is a chance it can be built out.

3) Check with the Council, but again there may be changes in the future. Make up your own mind - is the road in front a main road? Is it a long through road that may become busier?

Regarding a building inspection, I would consider it necessary. You will own part of the building, so it is in your interests to ensure it is sound. An inspection should also indicate any maintenance that needs doing.

Check out the records of the body corporate. Check out the minutes of meetings. This will give you a "feel" for a building, as any problems will be documented. It should uncover any narky neighbours that will complain at the drop of a hat. Look for maintenance problems raised but not acted on. Overall you want records that show maintenance is done, accounts kept well, adequate sinking fund, and general attention to detail.

As regards making an offer, work out what you are prepared to pay for the unit. We sold an IP in July and received the full asking price. It went to a young couple for a PPOR, they had missed out on several places previously by going in with low offers.

Despite what all the books out there say about going in with a very low offer, vendors these days aren't stupid and a very low offer is likely to offend, and they may decide not to sell to you at any price (their option). With the internet it is easy to check out prices. Save a bit up your sleeve, as a first offer is often met with a counter-offer.

Good luck
Marg

 

[mitchp]

Thanks for your info Marg. Re the body corp meetings minutes - how could I get hold of them?
Cheers
Mitch

 

[casper007]

There has been a major change in the zoning in Scarborough in the past 6 months. Enough for developers to pay over $1 mill for a 2 bed apartment in a complex ... just so they are in a position to JV with whoever developes it into a 15 story tower.

Check with the Shire ... but I'd say there is a good chance you will have a tower buiult in front of you if you are East of Westcoast Drive.

 

[mitchp]

There has been a major change in the zoning in Scarborough in the past 6 months. Enough for developers to pay over $1 mill for a 2 bed apartment in a complex ... just so they are in a position to JV with whoever developes it into a 15 story tower.

Check with the Shire ... but I'd say there is a good chance you will have a tower buiult in front of you if you are East of Westcoast Drive.

Hi Casper, what does JV mean? Basically all of Scarborough is East of West Coast Highway (I think that's what you meant by Westcoast Drive?), so that could be an issue for much of Scarborough. Cheers

 

[LynnH]

mitchp

JV = Joint Venture.

Cheers
LynnH

 

[Aaron Sice]

walk into the city of stirling reception and have a looksie on the back wall.

it's the structure plan for the whole City - and I can tell you there is nothing major planned for Scarboroungh other than

1) Scarborough Beach Rd widening to allow for a centre island and street parking.

2) Scarborough Redevelopment Authority's plan to re-zone West of Dean St to a mixed use scenario.

You will need to contact the CofS to get a hold of both of these proposals, on 9345 8555.

Hope this helps.

 

[marg4000]

Mitch, check with the RE agent regarding getting copies of BC minutes etc. They will be on file somewhere and the vendor should have copies.
Marg

 

[mitchp]

Put in an offer today on abovementioned property. I included building inspection and pesticide clearance as conditions. The REA got back to me and said there was no record of any previous buiding inspection and/or white ant treatment. The REA gave me the most recent body corp minutes for the last meeting a few months ago.

Dunno, a part of me feels getting building insp report is not necessary because any issues would be dealt with by the individual owners through the body corp. It's not as if it's an individual dwelling - any structural probs or termite issues would be dealt with as a collective.

What do people think about building reports as condition of sale in these cases? Thanks for your feedback to date forumites...
Cheers
Mitch

 

[paulie]

Hi Mitch,

RE - Building inspection
Whilst the choice is yours, the best inspectors will charge less than $1000 especially for a unit - probably in the $600 range - some dodgy building inspectors will do it for less than $350, and in my opinion a good building inspection is piece of mind. Yes any big issues are dealt with via the body corporate, hence you would be paying 1/10th of the total costs if the roof needs replacing - but I'd prefer to know now that the roof is in trouble and have that reflected in the contract price.

Most agents will have pre printed building inspection clauses for you to sign, which i would avoid. For my own purchases I typically use a Building Inspection condition worded "This contract is subject to the purchasers written satisfaction with the contents of a Building inspection report, from a registered builder of the purchasers choice within XXX days of acceptance of this contract."

RE - Future developments
Ring the local Shire and ask to speak to the Planning Department, I'd be giving the Planning Officer the address of the property and then confirming with them the current zoning of your property and any neighbouring sites you are concerned about, and asking specifically if there are any potential changes in zoning coming up for those properties. I am fairly sure there is soon to be or has recently been a large area of rezoned property throughout scarborough.

If you would prefer to just fish around on the internet for information, go to www.wapc.wa.gov.au
click on the left hand column for "Region & Local Planning Schemes"
then click on the left hand column for "Local Planning Schemes"
then click on "S" up the top for Stirling
then scroll down to and click on City of Stirling
Find the Scarborough section and download the pdf with current zonings
http://www.wapc.wa.gov.au/Region+schemes/Local+planning+schemes/573.aspx



RE - Body Corporate Minutes
You should have received from the selling agent copies of the last two AGM's minutes for the body corporate. If you haven't received it yet, you have every right to ask for it/demand it. When buying a "Strata Titled" property in WA such as a unit, you the buyer must be given Forms 28 & 29 prior to signing and submitting any offer. Forms 28 & 29 deal with disclosure of the body corporate setup (including the last two AGM minutes), and your rights and obligations as an owner of a strata'd property.

Good luck


Paulie

 

[casper007]

Generally speaking ... I'd only get a building inspection if to my laymans eyes ... something does not look right... or the IP is really old (which I usually buy and bowl over anyway)

When there are many owners or tenants ... you can simply knock on a few doors and ask what issues they know about ... it's amazing what people will tell you.

Good luck

 

[jaycee]

Don’t know how much of a concern it should be, but my experience with Strata titled dwelling is that they seem to have to rely on uninterested owners to liaise with each other & an uninterested, PM. Or, maybe I just live in a bad one...

I was wondering aobut a 2 bed in Scarborough, I thnk I'd look at the state of the complex to see if it's being maintained, last works done & then look for any minutes of meetings to confirm how it all works.. .Iv'e ben a t a plac efor 8 eyars - we have succesfully been able to only the following:

- replace broken fence (only when neighbour approached us a 3rd time threatening to ge the council involved, as owners would not agree to pay for it - way over 1 year approval)

- security for the carpark - gate / etc: 2 yesrs + and nothing done

- improving (raht fixing to liviable conditions)_the common gardens -= nothing done in 8 years except change gardeners, who all do as bad a job as each other

The problem is that you need leadership, and I've found that PM's don’t; provided it, and owners are too busy too o take it on (all good intentions aside)

Perhaps I live in a bad one, but I'm mentioning this as I've been considering looking this w/end at units in Scarborough