I tried to search for this topic to see if it had already been answered but couldnt find it anywhere but please let me know if it has been covered and where!
I am interested in a house to purchase as an investment property however it is on industrial zoned land. It is in a street with other houses however it is surrounded by industry (mainly large shops, a truck hire place and a big sports stadium etc so not hardcore industry with smoke coming out of pipes etc!) but the street itself is quite nice and has lots of trees etc.
There is a great tenant in there (house is kept beautifully and she keeps the gardens immaculate etc) who desperately wants to stay on (currently leased at $230/wk) and price of property is around $160k.
So far I know that it could be a positive down the track if a company wants to buy the whole street and knock them down to make way for more industry.
But I also know that the bank may not lend us the money as easily and we may have to take out a business loan as opposed to a normal mortgage???
Is there any other considerations I should be thinking about, because the yield is good and the house is in great shape for that price (and we would have a happy and good long term tenant from day 1) !
Thanks in advance!
MelTheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271
Apparently the vendor does not want to produce a section 32 until he gets an offer he is happy with…..TheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271BMWParticipant@bmwJoin Date: 2012Post Count: 25mjm2 wrote:Apparently the vendor does not want to produce a section 32 until he gets an offer he is happy with…..
Isn't it illegal to advertise a property without a contract ready?DerekMember@derekJoin Date: 2004Post Count: 3,544
Section 32 sounds like Vic.
In Vic it is a legal requirement that the section 32 be completed and provided to intending purchaser BEFORE they sign a contract. More details here.
If, after reading the information provided on the link, you are still interested in pursuing this deal make sure you get legal advice and at the very least make any offer you choose to make conditional upon receipt of full section 32 and your subsequent due diligence.Your BrokerParticipant@your-brokerJoin Date: 2012Post Count: 22
Basically it is the buyers responsibility to do their own due diligence and make a decision based on that.
I probably wouldn't even go to the extent of getting a lawyer to do a letter. Contact your conveyancor who attended settlement and discuss it with them. They will be in the best position to go through your concerns and check everything is in place with your contract. out of interest who was your conveyancor?
0430 110 304
Thankyou all for your comments. Yes the state is Victoria. Just to clear up, I absolutely havent put an offer in yet – only just viewed the property a couple of days ago. Interesting that it is illegal to not have a sec 32 drawn up prior to putting the property on the market. I wasnt aware of that, although I have never come across that situation before either!
I have since spoken to the planning department of the relevent local council and they outlined the following things to be aware of:
1. Dual occ/subdivision would not be approved given the land is zoned industrial.
2. If the house fell down tomorrow, it could be rebuilt, just not with multiple dwellings.
My broker spoke to the bank and it seems there shouldnt be an issue there, although they would definitely be doing a valuation on the property but were more comfortable given there is already a residential property on the block. It would be a very different story apparently if we bought a vacant block zoned industrial and wanted to build a residential property on it.
I will now be interested to speak to the real estate agent next week and query the issue surrounding the lack of sec 32.
I guess originally I was just interested to hear any thoughts/experiences of buying a residential property on industrial zoned land.
MelmattstaParticipant@mattstaJoin Date: 2011Post Count: 604
Sounds very fishy to me. I am glad you did not put an offer yet. If you like the house a lot, consult with an attorny firs. if not just move on. I would buy a house if even before buying it already causes me problems.