Monday, October 15, 2007

Good news and bad...I think

The refurbishment of my last property purchase was finally completed. That's the good news. The bad news is it was three weeks late due to the original batch of flooring being defective and having to be reordered. Although this did not cost me any money, it did result in a three week delay.

The other development is that the owners' committee has decided to refurbish the exterior of the building, including the pipes. (The lobby and common areas were refurbished earlier this year.) A levy is being raised from all the owners to meet the cost. In very rough terms the levy on my unit is about equal to 2% of its value. Based on previous experience, this will add to the value of the building and its appeal to renters (higher rentals and shorter vacancies), so I do not mind paying it. The bad news is that the refurbishment work is likely to take 3-4 months (to be confirmed) and, during that time, it will be hard to locate a tenant. In summary, I will have to put my hand in my pocked for a fairly large cheque, am likely to have difficulty finding a tenant for 3-4 months but will experience an uplift in value and future rent levels.

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