- JunkersMember@junkersJoin Date: 2004Post Count: 47
I am curious to know….if you ask for early access during the settlement period, to what extent can you do renovations? Are you only allowed to do a general tidy up (ie – painting, maybe new carpet) or are you able to do more significant work (put in a new kitchen or bathroom, or even structural work like divide a house into 2 separate flats??)
I’d really appreciate anyone’s feedback on this, as I have a property that could be great to turn into 2 flats, but don’t want to be paying interest payments while the work goes on. Can I do this or am I totally pushing my luck??Fast LaneMember@fast-laneJoin Date: 2004Post Count: 527
I dont think there’s any reason you cant do major work through the settlement. It’s just a matter of agreeing and using the correct clauses in your contract with the vendor. If they allow access, go ahead, but if they’re still going to be there during settlement it may be hard.
People have made a lot of money using this technique, so you’ve got nothing to lose and a lot to gain, so you might as well ask!
I heard this guy did this, he pulled down 2 internal walls and ripped all the wall paper off, but the thing was the bank hadn’t valued it yet for lending purposes. Because it was a construction zone when they did, it came in at under $30k less and he was left hanging…
Hope this helps…G7TerrywParticipant@terrywJoin Date: 2001Post Count: 16,213
Yes, i think you could negotiate anything. But, if for whatever reason you can’t or don’t settle, then the renovations belong to the owner.
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[email protected]ScullyMember@scullyJoin Date: 2003Post Count: 48
It’s just a case of coming to an agreement with the owner. We have done this with a couple of properties. We’ve put new kitchens, floorboards etc. in them before settlement with the agreeance of the current owner, and had them rented out by the settlement date.
It’s definately worthwhile if you can negotiate it.
Karen[biggrin]JunkersMember@junkersJoin Date: 2004Post Count: 47
Thanks for your help guys, it really helps.
The vendor has already bought elsewhere, but is not in a hurry to sell – she just comes back to the property on weekends to clean up and collect mail. So I’m sure if I can get her to agree on allowing me to have access, and negotiate a long settlement, and offer her what she wants for the property (Steve’s tip: “their price, but your terms”) I think I could be on to a winner.
Cheers!arungounderParticipant@arungounderJoin Date: 2004Post Count: 10
I bought a investment property and as the property was not occupied I asked for early access. The Vendor Solicitor said no probs if I took a Insurance and few conditions like no structural work, etc…. As I was only going to change some light fittling’s, paint, remove wall peper and other bits and pieces worked out well. Finished the work and 10 days later found a tenent.[cap]cattParticipant@cattJoin Date: 2004Post Count: 19
Recently we bought our first investment property fromelderly vendors moving to a residential. I requested permission from their solicitors but was not allowed. We had hoped to start cleaning up the garden which is neglected. N[baaa][baaa][baaa]ext time we purchase we will make this a point in the negotiations. We look like loosing 2 weeks rent at least. John