:: REAL CASE STUDIES ::
As a special service to our loyal readers we are developing this “REAL CASE STUDY LIST” which will be updated regularly. We will add to the page of Real Case Studies – circumstances, outcomes, events, that have been experienced so you the reader can have the answer or avoid some trick & sticky situation that may arrive in a real estate deal.
Select a subject that you may need info & details about a particular situation.
Remember these are Real Deals & Real Outcomes.
A community service with content that may save you time, effort & money.
:: Case Study :: Strategic Acquisitions
Please note: the client’s names have been changed at their request to respect their privacy
Recently had the pleasure of being introduced to a lovely couple from WA, Mike and Amanda. Aged 47 and 38, Mike and Amanda operate their own successful small business; however, both would like the opportunity to consider early retirement, ideally within the next 15 years.
The couple own two investments currently, as well as a beautiful home. Upon review, it was agreed that the current investments were not in line with their goal of capital growth and it was agreed that one or both would be marketed for sale when their current tenant’s leases expire.
After spending considerable time working with Mike & Amanda to review their existing portfolio, financial structure and capacity, we developed a plan to move forward including a comprehensive brief for the property (or properties) that would best suit both their current situation, and their long-term lifestyle and financial goals.
It was quickly identified that the clients had the risk appetite to potentially approach two acquisitions, should we find the right opportunities.
Whilst the client’s capacity to borrow was well above $1 million, we agreed on a budget of up to $550,000 for the first acquisition.
:: Case Study :: Retrospective Approval
Currently, due to the generational change in compliance regulations for structural extensions, additions & ancillary dwelling to residential homes. These are mainly for safety in line with standard building regulations. Some larger shires are handling up to 100 of these issues per month with homes in the process of selling or settling.
An established villa built in 1972 in a group of 20 Sold 2016 with a building inspection identifying a pergola was possibly not approved that had been installed in the late 70’s. The property had been bought & sold on a few occasions since that time without any issues.
However the installation & structure of the pergola was viewed not to comply with the building inspector, therefore requiring a compliance report. In the process would set up a chain of necessary investigations including; shire compliance inspection, application for compliance costs, engineers report, retrospective strata common title agreement, property management involvement, structural modifications, compliance inspection, draft of new structural plans, to go through the long list of needed actions to achieve “Retrospective Approval” through the shire…..
:: No Pro Building Inspection ::
Cash Buyer with no professional building inspection…
:: Title Insurance ::
Title Insurance save buyer from costs after sale…
:: Fence line incorrect ::
Land owner sells property to find out fence line is incorrect….
:: Incorrect data on Lot ::
Land Owner has sold off part parcel of land & all record online data incorrect….
:: Increased Strata Costs ::
Townhouse Sold & whilst awaiting for settlement strata meeting AGM increases levies & strata costs for new owner….
:: Drug Lab ::
House Selling & night before home open used as a drug lab….
:: Unknown Deceased Estate ::
House for Sale & Sold with owner not disclosing a death in the property….
:: DIY Management damage ::
DIY Property management with tenants dealing in drugs & damage property….
:: State Housing Neighbor’s ::
Property Sold for land to build new family home with new owners discovery of state housing next door & did not like it….
:: Developer builds Apartments to incorrect fence line ::
Builder purchases a large land lot & begins to build beside neighbors a 10 unit site. Next door decides to sell with a 3 units behind in backyard keeping front lot to build new home from sale of land funds. Upon measuring land lot finds out the developer doing the 10 units has gone over by 1/2 meter along a fence line that was placed incorrectly 40 years earlier……..
:: Site Restriction ::
Property sold as duplex land lot to new young owners wanting to subdivided into two lots, sell one & build on the other. Excited about the plan of making some extra money from the sale of land for a family home opposite a park. However after the purchase contacted builders to find a sewer line running under the lot & not shown on the old title. The land had a restriction not an encumbrance of 80 sqm unusable. Also the planned side by side two street front lots a major issue with one lot reduced from 10mtr to 8mtr plus a range of siteworks & building issues…..
:: Site works Nightmare ::
Outer metro residential large land purchase was quoted to have $20k site costs & retaining to build new house. Local self proclaimed guru of siteworks was worried about rocks so a build up required for house pad. On site inspection was not carried out properly & rear of lot was holding water with site requirements for drainage blows out to $80k …plus sewer connection issues……
:: New Home Sales Plans ::
New home consultant advises purchasers to get a home design drafted for $7k drawings. Costs quoted to build new home within budget agreed. Upon meeting to sign contract there was no mention of retaining or earthworks, services connections. Site preparation to build & be connected for house design $50k extra!…..
:: New Build falls short ::
Newly built home leaves out brick paving down the sides of property, sides of driveway & crossover not included in contract. …
:: New House Break & Enter ::
Friday handover of property key to owners who proceed to shift in all household items over long weekend. Whilst moving from rental property & not staying on site property is robbed….
:: Home For Sale & Home Open then Robbed ::
Large 3 storey prestige home is listed & goes on the market with contents for sale styling. Home Open has large number of visitors with single agent managing home open. Property robbed following night….
:: Building Inspection finds roof tiles fretting ::
Old potential property is sold in Padbury for land value with possible renovation opportunity. Upon building inspection it is discovered the roof is freeting under the clay tiles & replacement required. Costs estimated at $20k….
:: New Home Roof Faulty ::
1 year old house is sold with a building inspection requested & discovers roof faulty, estimated $15k structural modifications required…..
Watch this space for more…..
Compiled from actual deals & transaction by local WA agents finding sticky situations with outcomes recorded over the last decade.
An public information service compliments of www.deanmitchell.xyz