Forums / Property Investing / General Property / Walking away from 3rd IP

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  • Profile photo of JPS25JPS25
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    @jps25
    Join Date: 2010
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    Got past the solicitor who was against NRAS on the grounds that it was social housing

    Got the loans all approved by our own bank they would not normally touch NRAS  (not signed loan docs yet)

    Valuation all stacked up at purchase price (did have subject to in contract)

    Building Inspection was the let down

    Glad we had a subject to a satisfactory building inspection to Paul in our contracts

    The builders have offered to fix all problems and extend timelines

    Its in a body corps complex though so pretty sure we are going to walk away

    Sent Building report to a friend in the business for 30+ years last 12 as a supervisor/foreman of a building company

    He advised walk away as it sounded like shoddy workmanship carried out

    Oh well better to outlay a bit of money now in solicitors/building reports/ and no doubt bank valuations will now be charged to us if we don't go ahead but better than who knows what down the track

    The builders have said they will fix the problems but well maybe what about the other units was it just ours got the wrong end of the stick or ??????

    Oh well looks like IP 3 will just have to wait

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    What were some of the things outlined in the building report?

    Regards

    Shahin

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    Profile photo of Jamie MooreJamie Moore
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    Oh well – best to lose a few hundred on a building/pest inspection then lose thousands on a dud property.

    Seems a bit dodgy that problems are already presenting in a new build.

    I don't know which lender you're dealing with but you may get away without paying for the val – if it's a major then you should.

    Cheers

    Jamie

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    Profile photo of Mick CMick C
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    JPS25 wrote:
    Got past the solicitor who was against NRAS on the grounds that it was social housing

    *slaps forehead* NRAS is NOT social housing…

    To be eligible for NRAS, the tenant NEEDS to be working….

    Mick C | Shape Home Loans
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    Profile photo of JPS25JPS25
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    Hi Shahin just copied and pasted what was wrong into an email for you it was a list of 16 and that didn't include real minor ones that you expect.

    Jamie I am Heritage Bank

    I did mention when picking up loan docs about reviewing it in light of report and that we were getting a friend in the building business to look at the report for us and meeting up with the builders before making a decision she agreed its best to find out now than later down the track

    Profile photo of JPS25JPS25
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    Shape wrote:
    JPS25 wrote:
    Got past the solicitor who was against NRAS on the grounds that it was social housing

    *slaps forehead* NRAS is NOT social housing…

    To be eligible for NRAS, the tenant NEEDS to be working….

    I know Michael its laughable

    Not looking forward to him finding out we are pulling out unless the builders can give me good reason not too

    Even though it will have nothing to do with NRAS got one over him when the bank ok'd it and valuation stacked up ok not $20-$30K over

    Profile photo of TheFinanceShopTheFinanceShop
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    Hi Jean,

    I just had a look and wow seriously. Are you sure the builder has a licence to build?

    Do you know how expensive it would be to fix the storm water pipe and they didn't put drainage on the balcony?

    People that do not understand NRAS will generally knock it. General stock (particularly those in Brisbane) are overpriced however if you pick the right property – the benefits are massive. 

    Any reason why you have gone with Heritage? 

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of TheFinanceShopTheFinanceShop
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    BTW you have dodgy a king kong sized bullet! I would counting myself lucky regardless of the upfront costs.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of Shell HShell H
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    JPS,

    Congratulations on what sounds like a lucky escape!

    Profile photo of JPS25JPS25
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    @jps25
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    TheFinanceShop wrote:
    Hi Jean,

    I just had a look and wow seriously. Are you sure the builder has a licence to build?

    Do you know how expensive it would be to fix the storm water pipe and they didn't put drainage on the balcony?

    People that do not understand NRAS will generally knock it. General stock (particularly those in Brisbane) are overpriced however if you pick the right property – the benefits are massive. 

    Any reason why you have gone with Heritage? 

    Regards

    Shahin

    The property was in the Cargo Development Coopers Plains developer/consortium  BHC they have a big building group working for them. I admit I had seen several of the townhouses and apartments that were finished ahead of the one we chose and they had all seemed fine

    So glad we had a building clause in

    Profile photo of JPS25JPS25
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    Hi Shahin  sorry went with Heritage as our other investments with them under a professional package plus did have our home loan with them until we recently paid it all off. We don't pay the package fee it is waved as we have above a level of borrowing with them and no on going or establishment fee's either

    Profile photo of JPS25JPS25
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    The builders were Waltons you would expect better from a big company such as this

    I have agreed to meet them on Monday to discuss but they are in no doubt that we are on verge of walking away

    $380 for report is priceless

    Profile photo of TheFinanceShopTheFinanceShop
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    Builders are never good or bad as they rely on tradespeople who may or may not do a good job. 

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of TheFinanceShopTheFinanceShop
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    Heritage are a bit harsh when it comes to lending policy as well as servicing however if your rate is under 5.50% then you have got a good set up with them.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of JPS25JPS25
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    TheFinanceShop wrote:
    Hi Jean,

    I just had a look and wow seriously. Are you sure the builder has a licence to build?

    Do you know how expensive it would be to fix the storm water pipe and they didn't put drainage on the balcony?

    People that do not understand NRAS will generally knock it. General stock (particularly those in Brisbane) are overpriced however if you pick the right property – the benefits are massive. 

    Any reason why you have gone with Heritage? 

    Regards

    Shahin

    The storm water pipe he is talking about is the pipe from the tank to the ground I noticed it dripping slowly so much just a case of sealing it as above ground issue not below Shahin, glad I went along as it makes it easier to know what each point was about

    Profile photo of Andrew_AAndrew_A
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    Yes it's money well invested in the B&P report as it's a drop in the bucket compared with the growth or lack of from the asset you eventually buy.

    I'm open to the idea of NRAS, would love to see an example of one that I'd consider suggesting to an investor in Brisbane yet though.

    Profile photo of TheFinanceShopTheFinanceShop
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    @thefinanceshop
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    It is still quite strange considering it is new.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
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    Profile photo of Richard TaylorRichard Taylor
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    Hi Andrew

    In my experience such NRAS recommendation would not be in Brisbane as i have not see one that has valued up here.

    Done a few in Sydney which have seemed to have provide good investments for the purchaser.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
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    Profile photo of JPS25JPS25
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    @jps25
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    Hi Richard

    Valuation came out at purchase price

    Builders defects that are putting me off

    I admit they are only just going back in after xmas break and the blinds did still have to go up so maybe I did have it looked at early by the building inspector. Saying that I asked the agent if it was finished he said it was so what can I say there own silly fault I saw it when I did.

    Profile photo of DerekDerek
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    @derek
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    Hi JPS,

    OK – so your building report has come back with lots of questions marks. You are meeting the builders on Monday. How did it go?

    Let's take a step back and think bigger picture here.

    You are buying a property in a complex that has been built by the same builder. If your property has a number of defects – what is to say the others are not similarly affected?

    You now have a complex with more than it's share of building issues – sure many of them may be covered by maintenance warranty and 6 years structural warranty but the problems could well be widespread which in turn may mean higher strata fees, below standard construction which then negatively impacts on the long term values of the properties in the wider complex.

    While you may manage to get repairs done other buyers may not be so diligent and your wealth plans may be adversely affected by their lack of interest.

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