Join Australia's most dynamic and respected property investment community

Purchasing a termite damaged property

Discussion in 'The Buying & Selling Process' started by evisional2, 2nd Sep, 2016.

  1. evisional2

    evisional2 Well-Known Member

    Joined:
    4th Aug, 2015
    Posts:
    47
    Location:
    Melbourne
    Hello
    I am considering to purchase a property with termite damages in Brisbane. According to B&P inspection reports, termit has been treated based on the stick notes on the walls and there is no evidence of live termite. However, the property conditions is under average, walls cracked due to one stump damaged.

    I wonder if I can rent out the property or not if I buy this property? what is the legal requirements to rent out such property? Do you know how to get a report/certificate that the property is safe for occupancy/living?

    Thanks
     
  2. Otie

    Otie Well-Known Member

    Joined:
    26th Mar, 2016
    Posts:
    290
    Location:
    Vic
    Personally I would avoid it, unless a block of land in the same suburb the same size is worth the same price and you plan to knock it down in the future. (Then I guess it probably doesn't matter), though you would have to ensure it is safe to live in.
    It will probably end up being a can of worms. What is the discount on it compared to non termite affected?
     
  3. Stoffo

    Stoffo Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    226
    Location:
    Sydney
    I.guess it depends on how handy you are ?
    Ive seen places last 20+ years proped up on a few bricks and fibro used as packers.
    Is there future development potential ?
    As OTIE said, need to buy BMV, patch and rent.
    Decide later if you rectify or redevelop.
     
  4. evisional2

    evisional2 Well-Known Member

    Joined:
    4th Aug, 2015
    Posts:
    47
    Location:
    Melbourne
    There is a discount and development potential.
    Should I hire a structural engineer to assess the house safety?
     
  5. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,489
    Location:
    Perth, Melbourne, USA
    I am currently renting one out an IP which has had issues due to termites damaging most of the wooden floor structure. Will be demolishing shortly to build 3.

    The only reason I purchased this property was development potential, still could rent it out and I purchased it well below market value and I had the option to repair or leave it vacant while I applied for plans and permits

    It comes down to risk vs reward.

    Being able to secure the property at significant reduction/land value or less

    Dependent on amount of damage, cost to repair

    Can you repair this yourself, and save money

    Is this market hot/rising? makes it less riskier proposition.

    I have also purchased property with significant structural damage and it was the best property I purchased, as I made a killing when I sold up.

    Sometimes finding a solution can be a great way to make money, while others will run....

    MTR:)
     
  6. evisional2

    evisional2 Well-Known Member

    Joined:
    4th Aug, 2015
    Posts:
    47
    Location:
    Melbourne
    Thanks for all replies.

    I would like to quantify the cost/quotes to fix the structural and termite damages. Does anyone know any builders in Brisbane happy to give quotes and do the jobs if I buy the house?
     
  7. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,721
    Location:
    Sid en e - olympic city
    Where is it ? Have you had a B&P already ?