If you are seriously in the hunt to buy a bargain property, just be careful that you don’t actually get more than what you bargained for!
In this case, a ‘first time’ unexperienced buyer of leaky buildings hired me to moisture test a property after he had already payed a non-refundable deposit (auction).
If you see any advertising telling you about cheap leaky buildings for sale, then please proceed cautiously, because some leaky buildings leak so badly that they are beyond your standard re-clad to fix up.
Recently I did a home inspection for a client who was aware the home had moisture issues… it even stated that in the marketing materials for the home. You see, it’s easy for a real estate agent to say “the building might need a total re-clad”, but what if all the floor joists are also rotted? If you see a leaky home/building for sale in the Mission Bay, St Heliers, Kohimarama area at just $270k, then surely you would have to be suspicious there is more than meets the eye, right? You bet! Especially when it’s on a tiny cross leased piece of land with no view.
So what’s it really worth?
Unless your an experienced builder or investor who has dealt with leaky buildings in the past, then in my opinion you will need a complete structural intergrity survey of the home first (Don’t get excited by the price to quickly)… and if it’s so rotted that it’s close to a ‘knock down’ (don’t forget to factor in costs to take it away), then it’s barely worth the piece of dirt it sits on.
Everything property is a good deal at the right price, but make sure you also factor in your building experience into the price… and don’t let the hype of an auction grab your bank account and tear it apart like I have just witnessed!
Maybe ask a current or past leaky building owner if they would buy another one for a cheap price. I highly doubt it… especially if they aren’t experienced in the building industry. Take Care!