Buying a house with the plan to knock it down and rebuild

So we had been passively looking around the suburbs near where we live for a bigger house on a bigger block of land that we currently live in for about 6 months. More keeping an eye on the price properties were selling for than actual serious house hunting.

However, everything in the Tennyson/Graceville area that was in our budget had unfortunately been flood effected in 2011. Having been impacted by the 2011 floods in our current house – fortunately not too badly, but badly enough that we didn’t want to go through it every again, we were not keen to consider buying any of these properties.

After about 6 months our interest had waned and come early December 2012, buying a property was probably the last thing on our minds. And then we come home and in our letter box was a flyer for an auction for a house in our street, on a nice block, about 1.8m higher than our current place and that was ‘high and dry’ in 2011.  On the following Saturday we decided to at least have a look through given it was just up the street.

Having looked through the house, and more importantly liking the look of the block, we had a chat to the real estate agent who gave us an indication that the seller was keen to sell and that the property could go for a fair price at the auction.

That was enough for us! That following week we spoke to our bank, our solicitor (conveyancing), council (for plans/sewerage etc) and to a building inspection guy.

In our minds, we thought we should at least be prepared to make a bid at the auction if the property was well priced. There would be nothing worse than finding out later that the house had gone for a bargain price!

So luckily for us, the bank was on board, the conveyancing was good, nothing from Council put us off and the building inspection guy told us “if you weren’t planning on knocking this place down in a couple of years, I would have told you to run as fast as you can from this place! But it should be ok until you knock it down”.

That was all we needed to be ready for the auction on 22 December 2012.

The auction was interesting in itself and i certainly displayed my lack of experience in dealing with auctioneers but long story short, we got the house for a price we were happy to pay. A very exciting Saturday just before Christmas!

house bought at auction

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s