Hi guys, been lurking on the forums for a while now and finally decided to sign up. I would like some discussion over an apartment I am looking into investing however it has weather tightness issues. Usually, when I hear these issues associated with a body corp I will be miles away. This situation is a bit unique.
My real estate agent who sold apartments in this building has advised me to take a look at the potential. This is a 61sqm 1 bed concrete apartment built in the 1990s. Now, the weather tightness issues are on the balconies. Re tiling and re waterproofing the balconies are what's needed to resolve the issue. The budget is set for each owner to pay 15k-20k. Good news is the complex has 1 and 2 beddy apartments, the 2 beddy apartments with double the size balconies have already been completed and CCC has been issued. My real estate agent has sold 2 of these. I would like to hear about the risks associated with investing in this apartment complex. Now, from my understanding I believe they will complete the work and CCC will be issued, however we just don't know when or how much. Since it's a balcony issue primarily, tenants will still be able to reside. If I can secure a loan for the property I don't see there being too much risk. Rent appraisal for this 1 beddy is 500/week which I can easily rent out and get positive gearing returns until its fixed.
Any comments negative or positive will be greatly appreciated.
Cheers!
My real estate agent who sold apartments in this building has advised me to take a look at the potential. This is a 61sqm 1 bed concrete apartment built in the 1990s. Now, the weather tightness issues are on the balconies. Re tiling and re waterproofing the balconies are what's needed to resolve the issue. The budget is set for each owner to pay 15k-20k. Good news is the complex has 1 and 2 beddy apartments, the 2 beddy apartments with double the size balconies have already been completed and CCC has been issued. My real estate agent has sold 2 of these. I would like to hear about the risks associated with investing in this apartment complex. Now, from my understanding I believe they will complete the work and CCC will be issued, however we just don't know when or how much. Since it's a balcony issue primarily, tenants will still be able to reside. If I can secure a loan for the property I don't see there being too much risk. Rent appraisal for this 1 beddy is 500/week which I can easily rent out and get positive gearing returns until its fixed.
Any comments negative or positive will be greatly appreciated.
Cheers!
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