Would you buy a +CF property if after first inspection you saw structure problems like rust and cracks. The property is in a mining town with hard to ignore rent returns from a company.
Hi Gumtree,
If i was keen on it I would definately get a building inspection done, you could use the findings to get a better deal on it, or if its to much hassel walk away, its up to you, it depends how hands on you want to be and how much money you have to play with
If the property is hsowing signs of 'wear and tear' now definately get an inspection done and then weigh up your options. If the property is showing signs of wear and tear now will it require additional hands on involvements from yourself? Is this feasible?
You may also need to consider the extent and nature of the overall report and, with the contents of the report in mind, consider how readily available suitable & cost effective tradies are.
One more thing – will the work required consume all (most) of your projected profit?
One thing to take into account is that repairs and maintenance can be horrendously expensive in a mining town.
Cheers,
LukePersonally i would run a mile if the property is in a poor state of repair.
Couple of points worth bearing in mind:
1) The Tenant (Company or not) may serve if they have not already done so an appropriate notice to have the property bought upto scratch and any work done and you as the purchaser could be forced to comply.
2) The cost of trying to find a Contractor to undertake the work in a mining town maybe a lot higer than in the City so beware.
3) The lenders valuer may make comment on the state of the property and this could reflect in the lvr offered.Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
Hello gumtree,
Like other commentators, my major concern would be with try to find a contractor who will fix the issue at a reasonable price (and I don’t think there is a reasonable price in a mining town compared to that of a major city) that would not eat up your profits from the property.
That is my half a cent worth.
Regards,
Jason Moore and Sherry Ortiz
Deal Maker | Great Property Deals
http://www.greatpropertydeals.com.au
Email Me | Phone MeYour Private Off Market Property Acquisition Specialist - Forget Buying Through Real Estate Agents
Thanks for all your advice, I will get a building inspection and talk through if the cons out weigh the pros.
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