All Topics / Help Needed! / Last minute requisitions – what would you do?

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  • Profile photo of cruisercruiser
    Participant
    @cruiser
    Join Date: 2004
    Post Count: 43

    Hi,
    I am nearing settlement on a house in a regional town in QLD, $195k. Have tenants ready to move in and pay $330/week. House built in 97, always owner occupied, looks great.
    At the last minute, the local Council has advised that several requisitions haven’t been complied with. Mainly plumbing things: seal shower tap to wall, install backflow regulator to outside tap; about 12 things like this. Then, Council advises that the carport has been built differently from the plans given D.A. Therefore, for the carport to get DA now, new plans will have to be submitted.
    I called the vendor and told her I will settle, notwithstanding the lack of DA for the carport, if she knocks a couple of grand off the purchase price. She is thinking about it.
    I have no idea if this is a realistic estimate of what it could cost to get DA.

    Does anyone have any idea?
    What would you do in this situation?

    Cruiser

    Profile photo of Ellie DiazEllie Diaz
    Member
    @ellie-diaz
    Join Date: 2004
    Post Count: 7

    Hi Cruiser,

    I work at a council in NSW (but not in the DA department). however i don’t expect the DA costs to be more than a few $00’s. You’re best contact the council and ask them directly.

    What I would look into (and you may already have done this) is check on the cost of all the things you have to do to comply with what you have to do.

    If the purchase price including all these, is still reasonable (and for the rent return it looks like it is) then go on ahead with it. Better yet if you get a couple of $000’s off for the inconvenience.

    All the Best

    [aacool] Ellie

    Ellie Diaz

    Profile photo of 1Winner1Winner
    Participant
    @1winner
    Join Date: 2004
    Post Count: 477

    Your problems with Council don’t sound to be too expensive…however…if they want to be nasty and the carport does not comply they may want you to alter it and that may cost some more.

    Incidentally, is $330 a week a typo or what? Who pays that rent money in a Queensland town? That is Sydney prices!

    May God prosper you always.[biggrin]
    Marc

    Profile photo of foundationfoundation
    Member
    @foundation
    Join Date: 2005
    Post Count: 1,153
    Originally posted by Marc1:

    however…if they want to be nasty and the carport does not comply they may want you to alter it and that may cost some more.

    If the carport does not comply with building regs, would they not be doing cruiser a favour by forcing him/her to alter it? They might save somebody’s life after all…

    Profile photo of Mortgage HunterMortgage Hunter
    Participant
    @mortgage-hunter
    Join Date: 2003
    Post Count: 3,781

    I would negotiate with the vendor for a reduction.

    What does the QLD contract say? Are you in a position to call the shots? Or are you at a point where you need to settle regardless?

    Keep us posted. It is a interesting dilemma that you are in and I would like to learn more aout it.

    Thanks,

    Simon Macks
    Interest Free Home Loan Agent
    [email protected]
    0425 228 985

    Please email me rather than using the PM service here.

    Fully Accredited With Derivex LTD and IFHL PTY LTD

    ***Ask about our Interest Free Home Loan***

    Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.

    Profile photo of cruisercruiser
    Participant
    @cruiser
    Join Date: 2004
    Post Count: 43

    Hi guys,
    thanks for your thoughts. Simon, that’s a good point. I was assuming that I don’t have to settle unless everything has approval and all requisitions are satisfied, but now that you mention it I am not so sure. Will check contract on Monday (it’s at work), and ask the sol.
    Well, I didn’t hear back from the vendor yet so I guess I will have to make another call.
    Marc, yes it is a good rent. The property’s in Cloncurry, which is largely a mining town, although one prospective tenant was moving from Townsville to build a supermarket there, and Qld dept of main roads has a main depot there, plus a lot of trucking company employees seem to live there. The mine subsidises the rents I think. In fact, I was disappointed because it was rented to the mine a while ago for $350/week but I can’t get that. At $330 it doesn’t meet the “11 second solution” does it? Nevertheless it is good.

    Cheers
    Cruiser

    Profile photo of Adrian CahillAdrian Cahill
    Participant
    @adriannqld
    Join Date: 2003
    Post Count: 128

    just confirm you have seen the property. I would rather invest in Mt Iza (which maybe experiencing a little boom thanks to better than expected prospecting results at one of their mines). as long as u see the property and have everything in writing

    Adrian Cahill | AdrianCahill.com Personal Development Expert
    http://adriancahill.com/from-investor-to-coach/
    Email Me | Phone Me

    Here since 2002, however things have evolved over the years.

    Profile photo of cruisercruiser
    Participant
    @cruiser
    Join Date: 2004
    Post Count: 43

    Yes, I’ve seen the property. What happened, the vendor agreed to reduce the price to $190,000 as long as I accept responsibility for outstanding requisitions.
    regards
    Cruiser

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