NSW Buying my neighbours house - Western Sydney

Discussion in 'Where to Buy' started by pbond48, 4th Oct, 2018.

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  1. pbond48

    pbond48 Member

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    Hi all,

    I'm looking at buying my neighbours house, its the front of a battle axe block (Dual Occupancy) free standing house on a strata title.

    No strata fees so we just pay the rates and insurance separately.

    Its an older house (1980's) that needs some TLC with worn and scratched timber floors, needs a new kitchen and the timber facia on the eves has started to rot.

    It will be my first investment and to me it would be good as in time if I can get the rear house it will be an attractive offer to build town houses on it.

    I'm looking for some recommendations for someone to do a pre-purchase inspection - I want to know the issues before I commit to buying it.

    Also who do people use for property managers in western Sydney (Penrith)?

    Any recomendations for Landlord insurance providers?

    Located in the Penrith area close to the hospital and railway station.
     
  2. Gazza215

    Gazza215 Member

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    Mate, go for Stanton Taylor in Penrith. Heard good things about 'em.
     
  3. neK

    neK Well-Known Member

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    Buy with your head
    Not your heart.

    Make sure the purchase makes sense.
     
    Robert Petty, Joseph33 and pbond48 like this.
  4. Tonibell

    Tonibell Well-Known Member

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    @pbond48 Just make sure you understand the reasons why it a good investment for you.

    Being next door to your existing property can be a good start - but only it the two blocks added together are worth significantly more than they are individually. This would be because the zoning, frontage and land size makes a much better development possible.

    Having a battle-axe block would normally be a negative and your current purchase needs to stack up without needing the back block. If you do get it in the future that has to be considered a bonus.

    Probably worthwhile to put up some numbers and ideas you have for the purchase and get feedback on that from the forum. Probably more useful than a building inspector contact at this stage.
     
    housechopper2 likes this.
  5. Car tart

    Car tart Well-Known Member

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    Be careful that you have Strata insurance paid by the two of you and not just each person pays there own insurance on their lot. If the building burns down it is the strata that pays and rebuilds. Your personal insurance for your lot definitely does not cover the rebuilding of a strata property or the liability if a roof tile comes off and hits someone.
     
  6. pbond48

    pbond48 Member

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    Thanks for the tip. The seller just changed it from strata to pay your own lot insurance so looks like we will go with strata insurance
     
  7. pbond48

    pbond48 Member

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    Thanks everyone. We are walking distance to nepean hospital.

    Thoughts are to buy and hold for a few years with hopefully the person behind eventually wanting to sell. Looking at purchase price 449k rent $380 per week. It will have to be a slight negative gear cash wise
     
    Last edited by a moderator: 8th Oct, 2018
  8. bob shovel

    bob shovel Well-Known Member

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    What is the zoning? R3 or r4? Close to the hospital is good and heaps of developments going up.

    Are the neighboring blocks good to buy also? You might need more land
     
  9. Depreciator

    Depreciator Well-Known Member

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    If it was you just buying your neighbours house to create a potentially larger block, that probably makes sense.
    But it's not.
    It's you buying your neighbour's block and hopefully, maybe, one day, getting a chance to buy the other bit of the dual occ.
    Because it's a dual occ block, you're going to be paying a premium to get it all.
     
    housechopper2 likes this.
  10. pbond48

    pbond48 Member

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    Thanks Everyone for the wisdom.