Unnapproved Structures

Discussion in 'Renovation & Home Improvement' started by JZ93, 27th Jan, 2017.

Join Australia's most dynamic and respected property investment community
  1. JZ93

    JZ93 Well-Known Member

    Joined:
    29th Jan, 2016
    Posts:
    79
    Location:
    Melbourne
    Hi all

    Like to get more of an insight on how people approach purchasing property with unnapproved structures. It seems as though a good chunk of older properties contain unnapproved structures, ranging from carports to extensions.

    How do sophisticated investors tackle these issues? As they do possess a few risks. Such as insurance and public liability, true value/re-sale and council laws. But also costly measures to mitigate those risks..

    Is it just a choice of simply walking away from a deal, taking the risk, or someone having to pay to certify it?

    Thanks
     
  2. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    7,111
    Location:
    Sid en e - olympic city
    Deduct whatever value this may be adding to the price plus extra costs for removal, unless vendor wants to get approval.

    Talk to council about this as well.

    Sometimes it is very hard, councils can take weeks or months to respond.

    Your often competing with the clueless too.
     
  3. Gingin

    Gingin Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    137
    Location:
    Sydney
    Get title insurance. If required at time of rectification get a qs report and claim.
     
    JZ93 likes this.
  4. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    7,111
    Location:
    Sid en e - olympic city
    Will that work if you have not made efforts to enquire on approvals ?

    Has anyone here had a claim for non approved extensions or structure ?
     
  5. BeachBabe

    BeachBabe Well-Known Member

    Joined:
    31st Dec, 2016
    Posts:
    56
    Location:
    Melbourne
    1. Best to get a tradie in
    2. work out cost to rectify
    3. Get quote in writing
    4. Present quote with your offer to vendor to justify your discount.
    Vendor will take your offer mote seriously than you just stating it will cost $XX amount

    To be honest many people purchase unaporoved renos or structures and still live or rent them put without rectifying.

    More often than not in fast gentrifying areas the land becomes a development site, thus a knockdown if you choose well.


    Hope this helps
    * go the bulldogs ;-)
     
  6. Gingin

    Gingin Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    137
    Location:
    Sydney
    Title insurance will cover. See attachment
     

    Attached Files:

    Colin Rice and Toon like this.
  7. JZ93

    JZ93 Well-Known Member

    Joined:
    29th Jan, 2016
    Posts:
    79
    Location:
    Melbourne
    No worries thanks for the info guys!