After few weekends inspecting properties on Hurstville and Parramatta, we finally found one in Parramatta that fits what we are looking for in an investment property (a near cash flow positive).

So I’ve got everything almost ready now, got the loan arranged etc. So it’s just a matter of signing the dotted lines I thought. But I was in for a shock on Friday when the I got the strata report back.

Apparently there are problems with the building caused by negligence on the builder part. The Owner Corporation(OC) has been painfully trying to chase up the builder to rectify the defects but to date it still hasn’t succeeded in doing so.

While I think the defects will be fixed sooner or later (if the builder won’t do it, the OC will claim it from the building insurance), but it is still potentially a troublesome property. And for your first investment property, you don’t really need that extra problem (not to mention special levies that might be needed to cover the legal fees to bring the builder to court).

I’m really disappointed with this development, honestly speaking we are quite tired inspecting units already.. Wife will give the strata inspector a call tomorrow, ask for some opinions on the seriousness of the problems. It is quite unlikely that we will go ahead with this property.

Use your head not your heart (keep telling myself again and again, as I really fond of this property). Sigh, sigh, sigh.