澳洲Australia property Termites found..what to do? | Sydney


在澳大利亚 Hi all, I currently have a PPOR and 10K cash in the bank which I plan to use as a deposit for a IP early next year. Is it possible for me to place this into my PPOR loan and then redraw the 10K when Im ready for the IP and then claim the int Hi Guys, Ive found a property that has mentioned two payments coming up of $1400 to apparently top up the admin fund and 2 have just been paid. Im looking at a financial statement (basically a balance sheet) for the strata and its all a bit


Have just had the building inspector phone to tell me they have found termite activity in one of the stumps as well as the nearby window frame and cover boards.

The property also seems to have moved over the years and stumps have been chocked etc

What is your opinion on the termites, would you consider getting it treated and continuing on with the contract or take it as a risk and walk away?

Opinions appreciated.

Thanks

Matt  

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Hi Matt,

I would first consider how much potential the property has for Capital growth. If it is 'the worst house in the best street' and you expect it will have good cap growth I would get further inspections done and associated quotes to fix the problem. I would also consider demolishing & rebuilding if the numbers stack up.

I would check if the area has a history of 'termites' and what is attracting the termites to the house. If the previous owners left 'termite food' around the property then it may be a case of cleaning up around the property and the termites will go. The pest inspection company should be able to advise you.

Hope this helps !  

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The property is considered a long term investment, I think the potential for capital growth is low to medium and would not say it is the best house in the worst street.

The house was treated for termites 5 years ago by the current owner.

At this stage I am considering exiting the contract as it is an unwanted hassle for a property which the idea is to not have the associated hassles or worries.  

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I would probably do the same but it depends on the price. If you can get it 20% or below the market value and have to spray it for termites once every 2 years it may be worth your while (as long as you don't have to spend big $$'s on restumping, windows etc ). Tenants won't care if it has termites as long as it doesn't crumble under their feet !  

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Hello
The word "termites" sends shivers down my spine. If it was me I would walk away, although that is just my opinion, someone with more confidence and experience could turn this hurdle into a excellent barganing tool to get the price down.
If you are definitely going to buy the house, I can see 2 avenues to take :
1) Have a termite expert look at the problem to determine the extent of the infestation, it could be alot worse than it looks. Termite companies have special infrared cameras (I think) that can detect activity that is otherwise invisible.
Have a written report from them, give a copy to the agent and explain that it is his duty to disclose known major defects to prospective purchasers, then you can negotiate a good price on the property.

2) Pay the price you have already negotiated as long as the vendor pays all inspection/fumigation/repair work relating to the termites.

Termites have a phsycological effect on most people, much worse than green laminate, mission brown, or yellow bottle glass could ever have, so it could well be an excellent opportunity to reduce the purchase price. I would also make it known to the agent that you will follow up with the actual buyers a few months down the track to see if the termite problem was disclosed to them, this would motivate the agent to negotiate a reasonable discount with you, and not try and hide the problem for the next person who enquires about the house.
Regards Adam  

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Hi there.

Firstly, have a talk with the pest inspector. There are different types of termites, some are not so bad and some are really bad. Find out more info before making a decision.  

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Termites !!!!! they are ALL BAD

If this is a marginal buy then walk away....quickly.

We have a termite damaged house and it is trated but the damage is there forever.

just remember, if you want to off-load it in a hurry, your future purchasers will want the same type of discount you would be wanting from the current vendor. If it has been treated and they are back.....this is bad news....

most of the companies advise at least biannual treatment.

start walking now unless it is a development site in the making.....check with Council.

Savanna  

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I decided to let this one go, just wasnt worth the hassle.

Thanks for the assistance  

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