Half build houses bought at bank auction

Discussion in 'Renovation & Home Improvement' started by dev_melb08, 27th Jun, 2017.

Join Australia's most dynamic and respected property investment community
  1. dev_melb08

    dev_melb08 Well-Known Member

    Joined:
    9th Jun, 2017
    Posts:
    52
    Location:
    Melbourne
    Hi Guys, Looking for responses from experienced people who have bought an incomplete house as bank auctioned it for what ever reason.

    If the house is at a stage that the externals are completed, but internals are not, then what is the process ? Does it re-council approval, building permit etc etc ?

    What is the process to be followed and how much time does it take ?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    27,095
    Location:
    Sydney or NSW or Australia
    Thorough due diligence
    • You are taking on all of the responsibilities and liabilities (warranties) of the previous builder
    • Check all services ie drainage, water, storm water, electrical have all been installed correctly and been inspected/passed without defects
    • Survey to confirm built in the correct position
    • Council inspections have been completed and are satisfactory
    • Engineer reports presented
    • Any trades certificates have been provided
     
    dev_melb08 and Perthguy like this.
  3. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    I had a client who thought it was a profit maker. He was required to demo the slab and remove the stuff on site and restart and lost a motza starting from scratch
     
  4. dev_melb08

    dev_melb08 Well-Known Member

    Joined:
    9th Jun, 2017
    Posts:
    52
    Location:
    Melbourne
    Wow thats quite an experience.
    This one is in lockup stage, though I am looking to seek all the different permits. Ideal will be to re-engage the builder who was looking to finish this as its a case of Borrower defaulting.
     
    Perthguy likes this.
  5. Richard Taylor

    Richard Taylor Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    434
    Location:
    Brisbane
    Just bear in mind difficult to get traditional funding on a part completed building.

    Financed a number of fire damaged properties recently and none of these qualified for standard finance.
     
  6. Gavin Ng

    Gavin Ng Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    198
    Find out who the PCA (principal certifying authority) is, will be either council or private.

    Contact them and ask when (if any) the last mandatory stage inspection was, also tell them the situation and ask if it is possible for the new owner to take over the pca appointment.
     
    dev_melb08 likes this.