We were looking at a 2 story property but it has structural damage in the additions section. Looks like it was a verandah, they have closed it in and made 2 rooms. The room is not level and you can see it has dropped, removing a couple of tiles confirmed it. I have been told it is a matter of jacking up the house, packing it, which should cost around $5k. Could there be more to it as he makes it sound like a walk in the park ?
Who told you this? The agent. HAHAHA!! Don’t trust anything they say.
IMPORTANT!!!! Is the verandah legal?? Is it passed by council? Is it legally enclosed (I doubt it)??
If the answer is No! No! No! Council will probably ask you to remove it altogether.
Doesn’t sound like a walk in the park to me.
Restumping/repairing foundations can be quite expensive, I wouldn’t be relying on an agent saying 5k. I’ve seen quotes of 25-30k.
Something more important to touch on is that there are MILLIONS of houses in Australia, and many of those are A-Grade. So you have to ask yourself, why pick up a dodgy C/D grade investment when there’s plenty of fine properties already out there.
There certainly is the case that if the property is cheap enough and repair/renovation works will bring it into the A-grade category and allow you profit in the dollars saved with purchase price, BUT this very much needs to be carefully calculated to make sure you’re making profit, not buying a dog investment!
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thanks for your help. They had a Da Approval in 84 but it was not signed off on. No occupation certificate. So we walked. Thanks again for steering me in the right direction
Sounds like you’ve dodged a bullet there – good work.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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