QLD Logan properties "Buyer beware"

in a post apra where you're cornered to certain smaller lenders also be mindful to buy gutted house.
In a recent buy, the smaller lender refused to lend me money because the valuation report came back indicate risk for the improvement. Lender also requested b&p which doesn't help when there are many defects.

For some, it may an advantage to further negotiate on the clause.. I had to fork out cash to secure the property because I offered low ball revised offer which was accepted

 

Why mention it at all if it's just going to be a general warning.

 

You have to check things out .

We've bought several properties subject to inspection and walked away from two .

On one the agent said it just needed a lick of paint , the building inspector said a new room and rebuilding one wall , ? Around 30-40 but you wouldn't really know how much till the work was started .

The other one ( in Logan ) the large down stairs rumpus room occupied much of the same space as the double garage ...

Once he opened the garage , I don't think we even bothered going through the rest of the house . We didn't both contacting that agent again .

It's not a Logan issue per see , it's something that can occur in any cheap area in q'land . We saw some " really interesting " places in rocky when we bought there .

It comes down to doing your due diligence .

Cliff

 

I don't use BA's but if I was paying someone 10k I would bloody well hope they are doing some due dilligence on the property! Not BA bashing but I don't think it is worth it for properties under 500k. Especially if you are just looking for standard 3 or 4 bed houses. You can do a Brisbane day trip for $500, get on the ground and have a look around your self. If you intend to buy 2 or 3 properties it's worth your while to gain a good understand of the area. Once you are familiar with the area you can even duck up there in the afternoon and do a deal, leave work an hour or two early and you can be up there by 5pm and scope the property out.

Yep, if something good comes up on a Monday or Tuesday you can bet it will be gone by the weekend. Sometimes the agents will wait until the first open before accepting offers but it depends on the motivation of the vendor. My last buy, the vendor was committed elsewhere so they took what was on the table and didn't wait until the first open. It's important to try and understand what the vendors motivation is when making a deal, often the agent will be fairly upfront about it I have found.

 

Yeah I always tend to avoid properties like that. When I read "conversion", "teenage retreat" or "granny flat" I generally lose interest pretty quick. Most it it is just dodgy home handy man stuff.

 

We also tend to avoid the granny flat properties . While I understand the logic for doing it in terms of cash flow , especially when you're starting out , it does limit the pool of potential buyers if you're planning on selling ( obviously not an issue if you have no intentions of selling ) , but I also think that there is likely to be more issues with tenancies , with the GF's potentially attracting a lower class of tenants ( who can't afford a house ) . Having said that we have one long term property which is a house split into four units and havn't hadany problems which we weren't able to have handled by the PM.
Cliff

 

I would love to buy a property with a granny flat rather than building them myself! The problem is most are just a tin shed conversion, not council approved, have privacy issues or the vendor wants way over the odds for them.

 

Agreed. 9 times out of 10, you are better off buying a property with GF potential and getting the GF built yourself. Depreciation is better as well. Owners always want a premium for having done the work.

 

LOL, these were the keywords I used in my searches few years back, but not anymore. When you travel on the Western train line from Parra to Blacktown, you notice every few houses there is a granny flat/studio at the back. every man and his dog is doing one in Sydney... wonder how this pans out in Logan as it is only suburb that can have decent size granny flat...
will it be a rabbit take up, time will tell.

 

The agent needs to get called out if they indeed are falsely advertising a property. It's unprofessional, illegal, and highly unethical of them to be doing this. Also, this can give good REAs a bad rep/stigma

 

For sure, name and shame.
Too many things get swept under the carpet, and you're right, it does give the good ones a bad name.

 

BA's can be handy to get properties that can sell without even hitting the internet, often in Logan good corner blocks or small development sites are selling very quickly. There are a few agents that send new deals right to the BA, the BA gets it sold to well qualified buyers and the deal is just done quickly, no open homes for the agent to attend to etc. I know about 10 properties in Loganlea near the station, all rezoned, all sold via a BA or quickly via the listing agent, never even hit the net. I paid the BA 10k for one in Loganlea, the property has gone up 50-60k (yes lucky) in a few months so for me the 10k was worth it. For a bog standard property maybe 10k is expensive, but if it secures the property in a hot market and the property doubles in say 10 years is it worth the 10k? I'd say yes.

 

@rico2011 all that matters is that you are happy with the outcome. I agree 10k is nothing if the property increases in value enough to cover it. For me, I just like getting to know areas and doing the deal myself.

 

I agree with this because sure $10k is not a bad investment if the property has potential but I have always been the type that like to talk to the locals, real estate agents, print out several properties of interest to inspect and than come to a decision that way. Feel it's a lot more satisfying once the property is settled. But than again I have been very fortune so far in not buying a dud yet (Touch wood!).

I get worried when I was told that a friend bought two properties unseen in Queensland at $500k each! Not much of a punter but investing $1 million unseen......

 

It can be done pretty risk free, but need to do plenty of research and place some trust in someone at some stage.

 

ok, so in this case, shall we hire Building inspector and then Private certifier as well to see if the property is all registered and approved by the council ?