Hello, yes... sadly the very same unit with the roof and stairs problem! I'm the idiot that bought it! When I did the inspection not one single person told me about the roof or stairs and any pending BCC fines/issues... Is that even legal!?
Now, it's turned into a total mess and I'm struggling with all the costs on a single income. I had an offer for $235,000 and am thinking about accepting it and walking away.
Jason
Warning... long post.
We were looking about October 2010 when two in the building were for sale. Yours was $235K (ish) and the renovated one was $260K (ish).
I thought it could have been that one because at the time it was the only one that cheap. Don't beat yourself up or call yourself an idiot. To be honest, at the time we looked two were for sale in the block which made me smell a bit of a rat, and I said to the agent "there are two in this block for sale, is there something wrong?" He then told me that the stairs were condemned and the BC had until 25 December to replace them or face a $800K fine. That focused our attention
.
We still went to look, because at that entry price, I think from memory two sets of stairs and a new roof were going to cost each unit $30K. It still made good sense because the units were still pretty cheap.
It didn't turn us off completely and we decided to at least inspect them. The stairs were taped up and we had to use the back stairs which I think were also needing to be replaced but not as urgently. The railings were also not high enough for current building code but that is not uncommon in units that age and AFAIK wasn't something that needed to be updated, whereas the steps had a deadline.
If the agent didn't tell you, did you find out prior to settlement?
The unit itself was tired, needed a new kitchen and updated bathroom, and the living room was tiny, but again, for the price that was all we expected to get for such a cheapie.
My son was going to live in this and we really only decided against it because if the stairs were not fixed in time, then he was taking on the risk of BCC fining him $100K ($800K - 8 units from memory). So, that was our main concern, but being so tiny and with the entries off one long balcony meaning no privacy, and needing so much TLC we decided against it.
So... please don't think yourself an idiot. Probably most of us on this forum have made mistakes. We certainly have. Now... how to minimise the damage?
Have the steps been replaced? I'm assuming so because it was only three or four weeks before the deadline that we inspected it. What about the back steps, and the roof?
The other unit that was "renovated" and looked so much nicer on the net was for sale for $260K or so from memory, and there was something about that seller offering to "refund" $20K (from memory) after the contract was signed at the higher price.
I also recall that the one you bought (I think) had issues and the BC fees hadn't been paid for the past year or two, which also made us very wary.
It was wrong that the agent didn't tell me about the fairly major issues until I asked. I would be seeing the Caxton Street Legal Centre to find out where you stand legally on that. They are now at South Brisbane (1 Manning Street South Brisbane 3214 6333). My understanding is that once an agent knows something detrimental, he/she is obliged by law to disclose it. Why not also check with Consumer Affairs (or whoever looks after that sort of thing) whether it is worth pursuing this angle?
It probably would cost you more to pursue it legally, but if you managed to print the advert or have some proof that this was never disclosed to you, you might have a case. We did discuss at the time whether this agent was planning on telling us about the pending cost to rectify these issues. We don't think he planned on doing so, but we'll never know.
I wonder if you can somehow get copies of the advert. I know it didn't mention the major issues, and maybe that is okay as long as the agent tells you before you sign a contract, but if he didn't then I think you have a case.
My other question (sorry for the long post) is have you renovated the unit at all? Have the stairs been fixed? What about the roof? I'm just wondering if those major things have been fixed, whether it might be valued higher now and whether you are better to hold on for longer, rent it for a bit longer and wait for things to improve. If they have indeed been fixed, it might just take some time for the stigma of being that "dodgy" block of units to pass.
What sort of repayments and what sort of rent?
I'm also wondering if you can hold on a bit longer, it is in such a good area, and the transport building chaos (at least when we looked at it) nearby, should make this area even more attractive.
