Browse Forums General Discussion 1 Jul 11, 2013 12:46 pm Obviously each property is going to have some degree of issues that will need to be repaired or maintained. What are the sort of things that would come up in a Building + Pest report that would be a deal-breaker for you? Can everything be 'fixed' given enough money and patience, or are some properties simply beyond help? Re: When to walk away from a property? 2Jul 11, 2013 1:29 pm Structural problems and that depends on how bad they are. Cosmetic and I mean poor or degrading paint, rusting roof gutters and downpipes, leaking showers, etc etc can easily be fixed but major structural problems like badly cracked brickwork, lifting concrete slabs , termite damage can sometimes be fixed but only after spending tens of thousands of dollars. You have to weigh up what the house is worth now in its damaged state , whether the house can be fixed to a reasonable level, how much it is going to cost to do this and what the house will be worth after all that effort. Just do the sums. Stewie Re: When to walk away from a property? 3Jul 11, 2013 2:46 pm Yep, everything comes down to price. Depends on your scare factor too I guess. Some people run at the word "asbestos". If you are comfortable with the amount of work and are confident in your ability to fix it )or hire people to fix it) then that is OK. I like property with problems as it means negotiating a lower price and we can reno and add value. Lots of people want the perfect house and this is reflected in the price. We bought a burnt out property. Not structural but that scared a LOT of people away which worked out great for us. Depends on your time factor too. Some people need a place they can move straight into. A poor building report can give you some good leverage for a price reduction. Often they aren't as bad as they sound. The inspector needs to cover his ar##. Re: When to walk away from a property? 4Jul 11, 2013 4:16 pm It depends on your skill, knowledge. For me I would steer away from something with structural problems, termites, and water damage, but someone else may feel confident in tackling them. It would come down to anticipated cost to fix, value of land (better to knockdown rebuild?). Re: When to walk away from a property? 5Jul 11, 2013 5:20 pm As TinaG says, "it depends". I'd personally walk away from anything that has even a hint of water damage. That and the health issues coming from that, is not something I care to deal with (again). Re: When to walk away from a property? 10Jul 11, 2013 6:59 pm I admire people who have skills to fix everything at home. My home has a few problems: the carpet is not clean, the oven does work well, the board of the roof under the bathroom is wet. Sometimes I just think it will save money if I can do these things. Anyway I'd like to learn new things from people. I love the feeling of freedom, and love swap my service with other people. Re: When to walk away from a property? 11Jul 11, 2013 8:58 pm As pre purchase property inspector I have seen it all and it always comes down to purpose and value If you are busy professional and your time is extremely valuable you will likely want a home with nothing to do or you just want get on with it. On the other hand if you are seeking to build value and have time you will want to buy something that looks worse than it is at a bargain price and then renovate for profit. Or you can be anywhere in between Or you like building for a hobby Or renovating is your business This is where expert advice is essential not just about the property condition but also your options I have blogs on this http://www.buildingexpert.net.au/blog/w ... &message=1 http://www.buildingexpert.net.au/blog/w ... ction=edit http://www.buildingexpert.net.au/blog/w ... ction=edit Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: When to walk away from a property? 12Jul 12, 2013 7:59 am The uglier the better for me. I like the ugliest house on the best street. The worst it is, the fewer people that are interested, and so usually the better the price. The only thing that makes me walk away from a property is unrealistic sellers. There isn't anything that can't be fixed, as long as you bought at the right price.
I bought a old derelict house a few years ago. It had been empty for at least two years, but I liked it because it was an end house on a nice cul-de-sac with a double lot. The roof had some leaks and in places the ceilings had fallen and the floors buckled and rotted. The day I closed on the house I went over to start cleaning it up. There was an old metal box laying on the kitchen floor, which I just kicked off to the corner to look at later. At the end of the day I remembered the box and went to investigate. It looked like some sort of strong box, but was all rusted and when I turned it over the door fell open and I found it was stuffed with money! Almost exactly $50,000! The box must have been hidden up in the attic back in the 80's as all the bills were dated from then, and then when the roof leaked it eventually fell through the ceiling. But how amazing that with all the people that must have been through that house and after I signed the contract there would have been the appraiser from the bank and yet no one found the box. Re: When to walk away from a property? 14Jul 12, 2013 1:25 pm rogerinaus The uglier the better for me. I like the ugliest house on the best street. The worst it is, the fewer people that are interested, and so usually the better the price. The only thing that makes me walk away from a property is unrealistic sellers. There isn't anything that can't be fixed, as long as you bought at the right price. I bought a old derelict house a few years ago. It had been empty for at least two years, but I liked it because it was an end house on a nice cul-de-sac with a double lot. The roof had some leaks and in places the ceilings had fallen and the floors buckled and rotted. The day I closed on the house I went over to start cleaning it up. There was an old metal box laying on the kitchen floor, which I just kicked off to the corner to look at later. At the end of the day I remembered the box and went to investigate. It looked like some sort of strong box, but was all rusted and when I turned it over the door fell open and I found it was stuffed with money! Almost exactly $50,000! The box must have been hidden up in the attic back in the 80's as all the bills were dated from then, and then when the roof leaked it eventually fell through the ceiling. But how amazing that with all the people that must have been through that house and after I signed the contract there would have been the appraiser from the bank and yet no one found the box. THAT IS AWESOME! Good on ya! Re: When to walk away from a property? 15Jul 12, 2013 8:51 pm Metaphorically speaking there are 50K boxes in every reno (perhaps more than one) but the art is in picking up the right property and then having the technical expertise and economic sense to find them. Foremost Building Expert in Australia,assisting with building problems/disputes, building stage inspections,pre-contract review advice for peace of mind 200 blogs http://www.buildingexpert.net.au/blog Re: When to walk away from a property? 16Jul 13, 2013 1:17 pm rogerinaus The uglier the better for me. I like the ugliest house on the best street. The worst it is, the fewer people that are interested, and so usually the better the price. The only thing that makes me walk away from a property is unrealistic sellers. There isn't anything that can't be fixed, as long as you bought at the right price. I bought a old derelict house a few years ago. It had been empty for at least two years, but I liked it because it was an end house on a nice cul-de-sac with a double lot. The roof had some leaks and in places the ceilings had fallen and the floors buckled and rotted. The day I closed on the house I went over to start cleaning it up. There was an old metal box laying on the kitchen floor, which I just kicked off to the corner to look at later. At the end of the day I remembered the box and went to investigate. It looked like some sort of strong box, but was all rusted and when I turned it over the door fell open and I found it was stuffed with money! Almost exactly $50,000! The box must have been hidden up in the attic back in the 80's as all the bills were dated from then, and then when the roof leaked it eventually fell through the ceiling. But how amazing that with all the people that must have been through that house and after I signed the contract there would have been the appraiser from the bank and yet no one found the box. I just wonder the $50,000 is yours, or you need to find the owner of the $50,000. Sometimes I felt confused. For example, I found a wallet on the street, I will try to find the owner and return to them. If I have not found the owner of the wallet, what should I do? Just feel confused. I love the feeling of freedom, and love swap my service with other people. Re: When to walk away from a property? 17Jul 14, 2013 11:13 am apollobai I just wonder the $50,000 is yours, or you need to find the owner of the $50,000. Sometimes I felt confused. For example, I found a wallet on the street, I will try to find the owner and return to them. If I have not found the owner of the wallet, what should I do? Just feel confused. Comparing finding a wallet on the street and finding something in a property you have bought are two entirely different things. Legally anything that is in a property once you have signed a contract and own that property is yours. I did consider who the previous owner might have been, but the property was part of an estate that was being sold off by a trust. And who is to say the money was even put there by the last actual owner of the property? I even thought it might have been money from illegal dealings. Re: When to walk away from a property? 18Jul 14, 2013 2:24 pm rogerinaus Legally anything that is in a property once you have signed a contract and own that property is yours. I did consider who the previous owner might have been, but the property was part of an estate that was being sold off by a trust. And who is to say the money was even put there by the last actual owner of the property? I even thought it might have been money from illegal dealings. All chattels found in the property belong to the purchasor unless exluded by contract and removed by the seller prior to settlement. Thats was a nice chattel to pick up. Re: When to walk away from a property? 19Jul 14, 2013 3:57 pm qebtel All chattels found in the property belong to the purchasor unless exluded by contract and removed by the seller prior to settlement. Thats was a nice chattel to pick up. yes believe me, I checked with a couple of real estate attorneys, and an accountant before I did anything with the money. Re: When to walk away from a property? 20Jul 15, 2013 1:01 pm Yep, I am a law student and in that situation it is a case of finder's keepers. Building the Leabrook with Fairmont Homes in Mallala, SA. Building contract 24/3/13 Council Approval 18/6/13 Selections 29/6/13 & 1/7/13 Site works 21/10/13 Slab 7/11/13 I've got a challenge here. Background is the builder has cut too deep for the slab and the slab is now below the very substantial retaining wall. It's failed occupancy… 0 18487 AS4654.2-2012 External Membranes it is "Informative" but if you get water ingress your insurance assessor will go to this straight away and if not achieved, they will deny… 9 1957 Do you really want to accommodate the window? What is on the outside of the window? Do you want to be able to see your towels from outside? I would blank the window from… 2 9156 |