Keep it or sell it?

Discussion in 'The Buying & Selling Process' started by winniefully, 14th Oct, 2021.

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  1. winniefully

    winniefully Member

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    Hi guys,
    I have an investment residential property which is > 40 yr old, right opposite to Westfield, no structural problem.
    With current low market rent, yielding at around 2 - 2.5%. The problem is that the strata is requesting lift upgrade which will cost each unit > $ 9K and no lift use for > 26 wks. However, majority votes are required to go ahead so it might take a while. I talked to a few selling agents. If I sell it now, probably I would have ~ 10 - 20 K loss in terms of capital.
    What do you think based on your experience?
     
    winniefully, 14th Oct, 2021
    #1
  2. Stoffo

    Stoffo Well-Known Member

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    Anyone buying will/should do a strata report and will see the lift costs in the BC minutes and minus $10k (or more) off their offer :p

    Sure you might get a sucker suffering FOMO who jumps in blindly, but due to all the recent publicity regarding strata building issue's most will do their due diligence ;)
     
    Stoffo, 15th Oct, 2021
    #2
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  3. balwoges

    balwoges Well-Known Member

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    Horse has bolted, keep your tenant until new lift has been installed and sell then ... btw seems to me there was not enough money in the sinking fund for the new lift, so what you have saved over so many years by not paying enough in the way of owners corporation fees has come back to bite you ... :)
     
    balwoges, 15th Oct, 2021
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  4. jaydee

    jaydee Well-Known Member

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    I have an apartment in a 6 storey building with lift currently being replaced. Total cost for new lift was just over $200,000 with replacement taking 8 weeks.

    Although there is a cost, it will improve the facility and as others gave said there is no way to hide the strata cost if it has been discussed/agreed at the AGM.

    It must be pretty major for 26 week installation!
     
    jaydee, 15th Oct, 2021
    #4
  5. Marg4000

    Marg4000 Well-Known Member

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    On what level is the unit?

    No lift for 26 weeks means no tenant unless you are on a lower floor. Loss of rent would be greater than the lift replacement cost.
     
    Marg4000, 15th Oct, 2021
    #5
  6. winniefully

    winniefully Member

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    If the lift is under repair and not available, no one wants to walk up to top floor. i.e. the property will be vacant.
     
    winniefully, 17th Oct, 2021
    #6
  7. winniefully

    winniefully Member

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    It was Electra lift gave us the quote over 26 weeks. What is your company?
     
    winniefully, 17th Oct, 2021
    #7
  8. winniefully

    winniefully Member

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    Top floor : ( loss of rent + lift cost
     
    winniefully, 17th Oct, 2021
    #8
  9. jaydee

    jaydee Well-Known Member

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    The building I referenced was in Perth CBD. The lift contractor was KONE.
     
    jaydee, 17th Oct, 2021
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  10. balwoges

    balwoges Well-Known Member

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    Where does he say his apartment is on the 6th floor?
     
    balwoges, 18th Oct, 2021
    #10