Davo Tries Again

[Davo36]

Not to be deterred by his recent difficulties in securing a suitable property, Davo has:

- Attended a mortgagee auction for a property in South Auckland that he knows well, used to attend meetings at, and always thought was very well located.
- Entered into the abyss that is the post-auction-de facto-tender-process (the property was passed in at auction).
- Waited patiently (whilst tearing his hair out) whilst the mortgagees tried to screw everyone around for as long as possible, tried to circumvent the agents (despite them having a sole agency - duh!) and generally tried to avoid taking the loss they were going to have to take.
- After the umpteenth deadline for a decsion to be made being passed, surprisingly got the call to say "Congratulations".
- Kinda half arranged insurance. Tricky because there's no valuation and it's empty, so the insurers don't like it at all.
- Opened and nearly finished an entire bottle of champers, (after picking the kids up from daycare, feeding them dinner, giving them swings and spins, bathing them, giving them medication, telling them he loves them and putting them to bed - with the help of my wonderful wife of course)
- Typed this post.

So just the settlement then... should be no problems there right? What could possibly go wrong?

Seriously, I am happy with this one, and think it will settle and go well. I'll keep you posted.

David

[Dean@Massiveaction]

Very cool Davo, congratulations, I hope :-)

[fudosan]

Congratulations, David.

So patience finally paid off. Before the auction, did you check whether all rates were paid up to date? Can you just call the city council and ask them? I'll try tomorrow, as I have a mortgagee auction to attend soon. I know Section 36 Certificate gives you such information for unit title properties, but I have not even seen it once.

[Davo36]

Thanks Dean.

Fudo, normally the outgoings are apportioned by the mortgagees on the settlement date just like a normal sale. This will be in the sale and purchase agreements i.e. terms of sale. Make sure you have a copy in advance and read them very carefully. Sometimes in a mortgagee sale the mortgagee will make it part of the terms and conditions that they do not have to provide a section 36 certificate. In a normal (non-mortgagee) sale the vendor always supplies one. So in this case, you have to pay for one yourself. Get it from the body corp. Worth the $2-$300 it costs. Best of luck! It may be that the mortgagees are just starting to take the hit!

Re rates. What council area is it in? Normally you can look this up online, like for ACC, just look at the council site: http://www.aucklandcity.govt.nz/coun...ne/default.asp. I just looked, it used to tell what the annual rates are and how much was outstanding, now they don't tell you the latter. Ring them up, they may say. There was a thread on this a short while ago. Do a search, someone referenced some legislation that showed they had to tell you.

David

[whitt]

Nice work..........

[drelly]

details! we want details!

[Bluekiwi]

Yes tell us more, everyone loves a property story, just maybe not quite as detailed as Expats

p.s. You dont have a dog do you ?

[Xav]

Rates are a charge on the property and must be paid by the mortgagee, even if the agreement does not state that they will be paid.

Other outgoings are another story entirely and as Davo says you should make sure you check both the agreement and the current state of arrears carefully, particularly for Unit Titles.

So just the settlement then... should be no problems there right? What could possibly go wrong?

Many things .

Very few that the mortgagee couldn't get around for settlement though.

You do have risks in terms of damage etc by the mortgagor, but that is reduced as the property has already been vacated.

[Bluekiwi]

Tell me the address and I will send Shane Wenzel around

[fudosan]

Rates are a charge on the property and must be paid by the mortgagee, even if the agreement does not state that they will be paid.

Same with body corporate fees?

[Xav]

Same with body corporate fees?

I don't think so.

[spurner]

Congartulations!

I hope we can all read the details over the coming days/weeks/months!

[Davo36]

Guys, thanks for the positive comments.

Details:

It's a property at 107 Great South Road, Papakura. It used to be the Papakura Library and also had offices for the Papakura District Enterprise Board, the police constable etc. I have been to meetings there in days gone by when I used to sell real estate out that way.

And then the council moved everything out to a new building and it's been used as a spa pool shop since then. And the owner has absolutely trashed it. It used to be really nice, but the roof developed leaks and he didn't fix them and lots of the interior got ruined. That and lots of things have broken down and not been repaired.

It's 9,000 sq ft of building on 459 m2 of land. I got it for a good price.

So it's a bit of a project to me. What I hope to do is convert the upstairs to residential (4x apartments) and refurbish and let the downstairs as retail. It's on a very prominent corner so it has really good exposure. I'm looking forward to tidying it up and improving this part of Papakura. I'm sure everyone else in the area will be happy to have it tidied up and occupied properly again.

Today I have been arranging insurance. The insurance companies require that I change the locks and install a monitored alarm system for me to be covered at all. I have 10 working days to do this. So I'll have to get a phone line on too I guess.

So I have had to get the mortgagee's permission to change the locks, which they have given. However, I still have a $10k excess since it's vacant.

So getting the locks changed tomorrow and an alarm system in next Tuesday.

And then I need to start getting plans drawn up and kick off the whole redevelopment process.

Here is a link to the Bayleys listing for those interested: http://www.bayleys.co.nz/343724

David

[ladyagent]

Remember that, with mortgagee sales, the Owner has a reserved right to sell.I've lost the odd sale this way when purchasers, in some cases via other real estate agencies, have gone direct to the owner (not the vendor).Darn!!

[Davo36]

Yes but surely not after the mortgagee has sold the property.

I think they can sell right up to the point that the mortgagee sells but once it's sold, it's gone. I'm sure I'm right in this, but correct me if I'm not.