Sell/Hold/Develop/Buy Next door: Marsden QLD

Discussion in 'The Buying & Selling Process' started by Truly Exotic, 19th Jan, 2020.

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  1. Truly Exotic

    Truly Exotic Well-Known Member

    Joined:
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    Location:
    16.4944° S, 151.7364° W
    seems to be a lot of chatter about Marsden QLD, so here is another one :)

    TLDR story

    Myself and ex partner purchased a severely fire damaged prop, did a lot of work to it including new roof, replacing affected roof beams

    Fast fwd a few years, ex partner wants out, originally I was going to buy her out, ive changed my mind on the basis I think the $$$ could be spent elsewhere and I am not too confident of the long term prospects of CG

    Had an offer, fell through due to BP inspection, obviously past fire damage will always come up, a few of the roof beams seem a bit suspect.
    Going to be hard to sell at respectable prices, unless we discount stupidly

    have been considering to try and buy next door (agent currently talking to owners), and then to hold/develop

    Just looking to brainstorm a few ideas, any ideas welcome!

    Details:
    Asking Price: $300k
    Rent: $350pw
    LVR: 0%
    Block: 630sqm, with a slope to the back
    next door: 620sqm, 617 sqm
     
  2. thatbum

    thatbum Well-Known Member

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    I don't understand why buying next door helps you with your current issue with this property, unless 1+1=3 or something like that.
     
    Lindsay_W likes this.
  3. Lindsay_W

    Lindsay_W Well-Known Member

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    1) How are you going to release your ex from the existing property?
    2) Do you think it's a good idea to use 100% cash to buy the property next door seeing as you mentioned you're "not too confident of the long term prospects of CG" in the area?
    You could get better returns on that cash if invested in a different area or something other than property
     
  4. croseks

    croseks Well-Known Member

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    Seems like a very expensive way to potentially save some money.

    How much would it cost to fix the current problem? (Replace the suspect beams and any other damage, so that it doesn't cause any concerns for future buyers)
     
    Archaon likes this.
  5. Truly Exotic

    Truly Exotic Well-Known Member

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    Location:
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    1) Ill obviously have to buy her out
    2)yeah I agree, its not going to boom, so development will have a little more risk,
    it might be a case of throwing a huge chunk of money at it for low returns vs cutting loss and having a small loss

    not too sure at the moment, gettting quotes, but roof beems are expensive, the materials in particular, also throw in the "its a big job" image surcharge/premium
     
  6. God_of_money

    God_of_money Well-Known Member

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    Structural damage is very expensive to repair.. sometimes it is cheaper to demolish and build a new one.

    I wont buy fire damaged property unless selling land value - demolition cost.
     
  7. Marg4000

    Marg4000 Well-Known Member

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    These two statements contradict each other.
    You either replaced all the affected beams, or you didn’t.
     
  8. Truly Exotic

    Truly Exotic Well-Known Member

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    Location:
    16.4944° S, 151.7364° W
    either we didnt replace every single one we needed to

    OR

    the BP report is just assuming every beam thats even discoloured is not good


    we are still investigating
     
  9. God_of_money

    God_of_money Well-Known Member

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    Gold Coast
    If I m the buyer, I will ask for engineer's report and also council permit for renovation (due to structural involvement.