Offer accepted

Hi All,

I have put an offer on this property Margate and my offer is accepted. I found out the roof is an asbestos roof during building and pest. There is a leak on the roof which can be temporarily be fixed for 10k to 15k. This fix may last for 5 to 10 years.

The property is 57 years old. The cost of replacing new roof is 35k. Is it advisable to buy a property with asbestos roof ?

 

Only you know the property. It’s price and the condition. Is it cheaper or market price when repair cost is added to the property? Is it something fell in love with? Is it a worthy asset on a worthy street?

If answer is yes to all above…. Maybe.

 

Thanks for the reply. I am getting the property for mid 700k and is on 800sq of land. I like the property and in future may need another 30k worth of work.

In the current market everyone is overpaying. I am worried if I lose this property I won't find anything such big for my budget..

 

Looks to me like you answered your own question

 

I just bought similarly (asbestos roof), it doesn't phase me at all, I know at some point it will need to be replaced.
I also probably over paid, but I needed somewhere to move to in a hurry !

If you haven't put subject to building and pest (and that usually only covers major defects and termites) you are probably stuck with it if your offer has been accepted.

If it's a PPOR you would be best to replace the roof than spend so much to just "patch" it temporarily

 

It's an investment property and I have the build and pest clause on it. I can get out of the contract if I want. Everyone is over paying in Brisbane. It's a 60 years old house which is structurally fine but the roof cost of 35k and other miscellaneous cost of 20k are worrying ..

 

Guessing its the one on Duffield rd.?

 

Nice guess. No but It's in a quite street

 

There's plenty of asbestos around Margate, especially around this price tag. Asbestos can be removed, but not the land u buying with it.

 

Agreed it's the value of the land. When I put an offer on the property I knew I am taking a risk as it's flood prone. Now with asbestos this has become too risky

 

Ok, different story if its flood prone...

 

Is it on at least 810 sq metres? I think you might be able to subdivide into 2 x 405 sqm blocks if it is.

 

Patching asbestos can be tricky.. best is probably smothering the leak area with tar and painting over, but can be hit and miss, especially if you do not live in the property to eagle-eye the results. For 10-15k I'm guessing a sealant and paint jobbie across the lot.

If it contains a super-six roof, it is likely the rest contains asbestos throughout - have you checked this?

What is your intention? Hold for 10 years, or subdivide (or sell) for KDR in 5? For the earlier, I would replace the roof. For the later, patch and repair, and hope for the best.

Just remember, patching the roof may not be foolproof, and if you live in Brisbane, you probably already know, any water leak will show mould quickly during heavy rain years, and will greatly reduce rental potential/require ongoing costs to address.

 

can it still be developed in the future ?
If it can't be subdivided or end up high density zoned then it's value may always lag...
What's the council min floor height, as building in the future may incur additional expense !

 

Thank you all for those who replied and gave us advice.

We have decided not to go ahead with the sale as we are still in cooling off period. There is too much work to be done and we are not ready for that at this moment.

 

Wise decision ...