Friday, June 16, 2006

Property purchase update #4

I signed the facilty agreement with DBS today. The only minor point outstanding with the bank is that fire insurance is not included in the body corporate so I need to arrange that before completion. The solicitors will prepare the mortgage document for me to sign before drawdown next Friday.

The only minor irriation is with the vendor. Under the sale and purchase agreement I have two rights to inspect the property before completion. Unfortunately the vendor has managed to make himself uncontactable so the inspection cannot take place. I was planning on using one of the inspections to show the property to the contractor so that I can agree plans and a quote before completion and he can start work immediately after completion. Based on previous experience, I will lose about a week if I have to wait until completion before showing the contractor the property.

When the contractor does get to see the property, I intend to ask him for two quotes:

1. a minimalist redecoration: basically repainting, fixing minor problems etc
2.a full renovation: new flooring, new light fittings, new kitchen, new bathroom etc

I will then run some numbers and see whether the extra rental from option 2 justifies the additional cost.

No comments: