HI Guys
Hoping some builders or people with experience could shed some light on the following.
I am purchasing a fibro home on the central coast nsw around 50/60 years old and am worried about the asbestos component
It is need of painting inside and outside as the paint is flaking and also needs flooring replacing
Is it worth renovating to rent out and is it possible to do this economically?
Can anyone offer constructive advice of whether this can be done safely and without blowing a budget?
Thanks guys
I think you should take your foot well and truly off the pedal.
Don't buy something and then pray the numbers will somehow stack up. Such an approach could easily lose you a big pile of money.
Get some quotes BEFORE buying things so you can understand how things will look financially after doing works on the property. Talk to Property Managers and Selling Agents to understand what it would rent for or sell for before and after the works.
After you repeat this exercise a few times you'll get to know ballpark figures of certain types of works and be able to make more calculated decisions on properties that are viable.
On a separate note, asbestos is not popular with the lenders and for good reason. Be sure you've accommodated for this fact in your contract if you do in fact agree to buy a place with asbestos.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
JacM can you expand on what you mean by "asbestos is not popular with lenders, and for good reason?
A big proportion of houses built over 30 years ago have asbestos so I find it hard to believe everyone buying older houses is having difficulty getting finance.
Asbestos has never been mentioned to me by a bank, even when I bought a burnt out property that obviously I intended to renovate.
Agree; most houses built over 30 years ago will have some form of asbestos. Out of 1000's of application i have only probably seen 1-2 bank valuation where the asbestos has caused some grief and this is because the property was under going major structural renovations and the funds/revalue was required as part of the "As if completed construction valuation " and that particular property was covered in asbestos the cost to removed asbestos was not taken in consideration in the "renovations/construction cost"
Having said that it's always smart to take asbestos into consideration for any purchase as the cost to remove asbestos is hefty+ the lack of flexibility too renovate can cause some issues.
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
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