NSW Buying apartment, concern with the quality, with pics

Hi,

There are 3 apartments in a complex for sales. I chose one of them, paid 0.25% deposit. I called the other real estate agent to say that I chose X over yours, please tell the vendor I am not buying hers now. Then the vendor gave a big discount and looks hurry to sell. This made me feel this building suspicious.

Please have a look at the pictures taken at the lowest level of the basement. How serious is it, and how sure is it? Water leaking at the basement.

 

You really want a building inspection and review the body corp minutes. Why did you sign and pay the 0.25 anyway?

 

Doesn’t look ideal. Read the strata report before the contract goes unconditional.

 

Who is paying for the remediation work in progress? Is this property still under warranty? Is there a special levy looming? How healthy is the sinking fund?

 

Um, is this a new building, ie. a high rise?

Just in case you didnt catch 4 Corners last night... Cracking Up

 

Do you have a conveyancer to do all of the searches for you?

 

Where is it located?

 

Hi, thanks for everyone.

Ashfield, the complex is 2 years old, 36 lots. Yes, I have a conveyancer. If this is obviously too bad, I would not bother to pay for the strata report, as my conveyancer says it is $240. If it is not obviously serious, I will pay for the strata report. Also there are 5 sales from 36 owners, this makes me feel not encouraged to pay for the strata report now. The 0.25% deposit will be refund as I did not sign the contract.

The lowest basement has water leaking problem. The strata vacate it and is repairing. That is the information I get without a strata report.

 

Why did you pay the 0.25% if you didnt sign the contract?

 

It is impossible to tell anything from those photos about what is happening in that basement. Clearly all is not well.
You don't need to pay $240 for a strata report. You can make an appointment with the strata manager and go and sit in their office and read all the strata minutes. If anybody makes it difficult to do this, you will know why.

 

If $240 is too much to outlay for information about a $600k+ investment, you need to review your priorities.

This is part of your due diligence. If a flooded basement isn't enough to scare you off not knowing who's paying for it then you're a braver person than I.

 

I personally wouldn’t buy a new apartment in that suburb regardless of build quality. There’s no CG upside likely any time soon and plenty of supply in that general area

 

I did not say I am not willing to pay that fee. It is just that it is so scary that I may not buy this property without needing to read strata report now.

 

Thank you. Anyone can ask to read the strata report with an appointment?

 

It is a 675k property with 640/w rental, 10 mins walk to the station, 115 sqm, good internal condition, in Ashfield. And in the inspection day, others are interested too. I checked with the conveyancer and the vendor's agent that 0.25% is refundable without condition, and paid it to lock in this property.

I told the agent who is selling another property in the same building, as a courtesy, that I am not going to buy his. Then he offered 670k and hinted me to bargain for 650k. I realize at that time it is not right.

Discussed with friends in the real estate industry, and discouraged to buy it. I will double-check the basement with a builder tomorrow.

 

Will you know what you are looking for in the minutes?

People pay for plenty of building inspections prior to going to an auction where they may be successful too - it doesn't stop them from undertaking their due diligence to establish whether or not to proceed.

 

Never heard of this in nsw. If its refundable unconditionally, whats the point and what is the vendor getting out of it?

 

Yes, I would love to pay the building inspector to do the due diligence. And I asked for the recommendation of an inspector. Just the people in the industry told me that a several-hundred-dollar inspection will not discover real structure defect.

As for the water leaking or cracking on the wall, a builder is sufficient to discover.

 

BTW, the 650k - 670k offer is for a 103 sqm apartment in that building. A maximum 27k price gap for 12 sqm could make sense.

I felt suspicious because of the attitude, not because of the price.