- RhettusParticipant@rhettusJoin Date: 2013Post Count: 7
So my missus and I paid off our PPOR and decided to get an investment property. Thought we would be cautious and buy in an area we knew. We picked up a four bed, two bath for a pretty good price. This property is slightly negative geared. We got the keys on Friday last week and decided to do a blitz clean and paint of the whole house. She looks a million bucks!
I was painting the last room and literally the pressure of the paint brush l pushed in the skirting. I knew something wasn’t right. Further investigation (with the help of a builder mate of mine) lead to finding a dodgy tiling job on the front pergola made water pool against the house during heavy rain.
One saving grace is the house frame is cypress and hadn’t been touched by white ants.
So.. I am getting my builder mate to incorporate drainage in the pergola which pushes our tenants moving in a week back. Our building and pest inspection under “skirting and borders” says no defects found. Should I sue? It was so obvious. Even I would have found this with my untrained eye.
Can someone tell me it’s all going to be okay. My stomachs in my throat and my heart’s going a million miles an hour.
We are 25. I’ve learnt a lot from the experience. It’s only the beginning of a long road of being an investor.
Feels like a punch to guts.
There are definitely positives in this scenario and it’s not all bad news. I guess I just wanted my first property to be relatively straight forward and it hasn’t really been.
I don’t really have anywhere to vent. So thankyou for reading
How bad is the damage? How expensive will it be to fix?
I doubt you'll be able to make any claim against the inspector – they have lots of fine print in those reports!
On the bright side – at least you found the problem now rather than have the tenants report it. I imagine it would be easier to fix whilst it's vacant. Secondly – you've got a builder mate which is always great
It's not always smooth sailing in the world of property investing- and if it was, then everyone would do it. Hopefully you can look back on this in a few years and laugh about it.
JamieRhettusParticipant@rhettusJoin Date: 2013Post Count: 7
Thanks for your support. We got a person into sort the gullies in the patio for $600. The rot in the bathroom and skirting was pretty severe but we can dry most of it out and replace the bits that can’t. Overall it’ll cost about a grand to fix up.
Not bad considering it could have been a lot worse.
Better the devil you know. And on a better note, i got a call this arvo to say our tenants still want to move in this weekend but not use or move into the areas that are having work done.
I guess it is working out
I spent way to much energy stressing on those one I think
Losing a grand is a pain in the bum but at least it hasn't sent you broke that's good news about the tenants too, at least you won't have to forego any rent because of it.
JamieJacqui MiddletonParticipant@jacmJoin Date: 2009Post Count: 2,539
It would cost you a hell of a lot more than $600 to sue. When you are buying property, it is a good idea to say to yourself "I understand I am buying second-hand property. Something somewhere will be wrong with it. I am happy to fix things to the tune of perhaps $2k.". Keep your eyes peeled for "expensive issues" in the results of the building and pest inspections (by expensive I mean $10k+). For such things you'd ponder the pros and cons of exercising your right to use your building and pest clause to exit the contract. But not for small problems. You'll ever find a "perfect" secondhand property. Don't sweat the small stuff. Remember that by the time you find a "small issue", you already have to pay your solicitor, your building and pest guys, and potentially also fees for bailing out of the contract. So it's not always cost-effective to do so. This is why it is important to go into it accepting there might be something that needs doing.CatalystParticipant@catalystJoin Date: 2008Post Count: 1,404
Vent away!! That's property investing. Expect the unexpected.
I'd also offer the tenants (if they haven't asked) some compensation for the inconvenience. Even if it's a bottle of wine and chocolates. Cheap in the long run considering you could have lost a weeks rent. And they will always remember that when things come up in the future.