What do you think of this....what would you offer?

I have the opportunity to put an offer in on a property not yet listed in a complex that I have been very interested in for some time. Villas are a mix of 2 bed or 2 bed and study (3rd bed conversion possible) and sell for between $300-$350K generally - the upper end are usually nicely renovated, lower end are average but good condition.

The one I'm looking at is 2 bed and study but in terrible condition - needs new floor coverings, paint, window coverings, some garden work, etc....kitchen and bathroom are ok at first look. Not sure about light fittings etc...has aircon but may not work, a few doors are broken and need replacing too - it hasn't been looked after at all and I think there will likely be a lot of little jobs pop up too as a result.

Biggest problem is that it clearly has termite damage - unsure if currently active or not at this stage but they have obviously eaten around one doorframe, who knows where they got in or how far the damage goes! And I'm not sure how good/reliable a building/pest inspection actually is....I have had one done at my own place looking for termites that got the all clear and we accidentally found them ourselves the very next day - still active and with a fair amount of damage!

I am no tradie, I can paint but that's about it so would have to get people in to do the rest. Have never reno'd a place before so have no real idea of cost of floor coverings or whether to do a cheap job or a decent job if it is for an investment (buy/hold rather than flip, although that may be an option if I can get it for a good price). I am seriously considering putting in an offer on this one though (I have been told ?? 275K), subject to how bad the building/pest comes back....if I can get it for the right price , it might be a good 'practice' run for reno - worse case it costs the same as a unit that is already done up I guess, but may do better than that.... interested to hear the thoughts of those of you who reno / have experience with termite damage/repairs - would you consider it, any advice, how low would you offer?
 
I am no tradie, I can paint but that's about it so would have to get people in to do the rest. Have never reno'd a place before so have no real idea of cost of floor coverings or whether to do a cheap job or a decent job if it is for an investment

You're in trouble mate. Do you due diligence first and figure out costs (plus contingency) and factor in buying and selling fees. Never go into a deal 'blind' because it seems cheap. Also keep in mind the next prudent buyer will likely get a building surveyor in and may void a future contract.

It's a lot of money to be playing around with.
 
Termites could be a body corp issue. The termites may have had to get through the "common areas" to that villa. Other villas may be affected etc. Complex may have had regular termite inspections/ termite prevention in place and covered by insurance. Maybe you can check this out prior to placing an offer.
Others on the forum would be more cluey than me about this issue.
Cheers, nat
 
investment (buy/hold rather than flip, although that ay be an option if I can get it for a good price). I am seriously considering putting in an offer on this one though (I have been told ?? 275K), subject to how bad the building/pest comes back....

Hi pipsal,

How long on the market?

Personally look at comparables that have been renoed,the aesthetic of the building combined with strata + future costs etc and the ratio of owners to renters imo.

Low ball pipsal until your prepared to pay to make it worthwhile.

Good luck,

Cheers Spades.
 
I have the opportunity to put an offer in on a property not yet listed in a complex that I have been very interested in for some time. Villas are a mix of 2 bed or 2 bed and study (3rd bed conversion possible) and sell for between $300-$350K generally - the upper end are usually nicely renovated, lower end are average but good condition.

The one I'm looking at is 2 bed and study but in terrible condition - needs new floor coverings, paint, window coverings, some garden work, etc....kitchen and bathroom are ok at first look. Not sure about light fittings etc...has aircon but may not work, a few doors are broken and need replacing too - it hasn't been looked after at all and I think there will likely be a lot of little jobs pop up too as a result.

Biggest problem is that it clearly has termite damage - unsure if currently active or not at this stage but they have obviously eaten around one doorframe, who knows where they got in or how far the damage goes! And I'm not sure how good/reliable a building/pest inspection actually is....I have had one done at my own place looking for termites that got the all clear and we accidentally found them ourselves the very next day - still active and with a fair amount of damage!

I am no tradie, I can paint but that's about it so would have to get people in to do the rest. Have never reno'd a place before so have no real idea of cost of floor coverings or whether to do a cheap job or a decent job if it is for an investment (buy/hold rather than flip, although that may be an option if I can get it for a good price). I am seriously considering putting in an offer on this one though (I have been told ?? 275K), subject to how bad the building/pest comes back....if I can get it for the right price , it might be a good 'practice' run for reno - worse case it costs the same as a unit that is already done up I guess, but may do better than that.... interested to hear the thoughts of those of you who reno / have experience with termite damage/repairs - would you consider it, any advice, how low would you offer?

That's a huge job to start your first one on,
Full cosmetic and possibly major structural work as well
 
Termites could be a body corp issue. The termites may have had to get through the "common areas" to that villa. Other villas may be affected etc. Complex may have had regular termite inspections/ termite prevention in place and covered by insurance. Maybe you can check this out prior to placing an offer.
Others on the forum would be more cluey than me about this issue.
Cheers, nat

Don't think it's a body corp/insurance issue. The villa is a duplex, I am aware of other units in the complex having had some minor termite activity, but they don't carry out inspections or have prevention at this stage.
 
Hi pipsal,

How long on the market?

Personally look at comparables that have been renoed,the aesthetic of the building combined with strata + future costs etc and the ratio of owners to renters imo.

Low ball pipsal until your prepared to pay to make it worthwhile.

Good luck,

Cheers Spades.

Thanks Spades...

It's not technically on the market yet, but the manager's keep me up to date with what is coming on the market in the complex before they get listed. This one is relatives having to sort out affairs of someone else and have a fairly big job on their hands as they are elderly and live interstate.

This unit is one of the popular and harder to come by floor plans that I'm after, but the condition is the concern - especially the termite unknown. I have looked at many other units in the complex over the past year, of different quality reno and some fairly original state. Ratio of owners to renters is 80:20....very heavily owner occupied complex, with a waiting list of pre-approved tenants (2 bed rent approx $360/wk). Strata fees are pretty comparable with other's in the area.

I can work out approx. costs on the cosmetic reno that NEEDS to be done to rent it, but until a building/pest is done I have no idea as to how far the termite damage may go - so far it is the architrave around one door frame, but could be inside the walls too.

I'm thinking that after working out approx. costs of the cosmetic reno the next step would be to put in a low offer subject to building/pest and see what the story is - or if it can shed any further light on the termite situation?
 
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