40 Commercial Road, Footscray VIC 3011
Summary: Will require lots of renovation if you planning to live in, alternatively it is more suitable for long time investor or development by building new house on it. These type of Shop out front and house in the back will become rarer and rarer, a pity as it was always fun visiting the ‘milk bar’ nearby. Contract wise the Landtax is highly recommend to remove, however this must be negotiate prior to auction.
UPDATE: Wow sold at auction for $1.2m by a knock out bid!
Contract Review: 40 Commercial Road, Footscray VIC 3011
Disclaimer
Please find below is Ocean’s Contract Review from the Section 32 and Contract of Sale for this property based on documents we have received, please note that this is our opinion only and further question can be inquire with us or your Conveyancer. If you have any question outside of the Contract, you should contact the real estate agent:
Mr Caleb Venneri: 0459 626 066
Mr Christy Liden: 0431 110 993
Auction: 2pm on the 5th of August 2023
Please call us, message, visit or email us if you have any further inquiry regarding Contract or Property Laws.
Currently the agent valuing this property between: $1,000,000 to $1,110,000, please take that into consideration during research, negotiation, bidding or property valuation and finance with your banker or broker.
Personal Thoughts
Commercial Rd but it not a commercial property, how misleading 😊! That is until I see the photo of the property, it indeed does look like a Commercial small shop many decades ago, there is only 3 photo so I can’t really comments much but it does look very old and is not in a livable conditions. You would only want to buy this for the Land to sell in the future or to build new house on it. Couple of door down, I see an interesting looking house, 5-6 car park spot, is that a commercial property?
Location wise it quite good, Victoria University, Footscray Shop, if you like the Melbourne Cup horse racing, not too far from Highpoints and a very big and nice size Footscray Park.
Now in relation to the contract.
General Information & Terms and Conditions
Noted: If purchase at Auction, you may lose your Cooling Off right, Deposit need to be ready on the day, Term and Conditions may not be negotiable.
Special Conditions:
Quite standard, however there is a $330 for reschedule of settlement date, $880 if we are in default.
However SC11 is dangerous if the owner own many property, especially if he own many in area that have similar value like Footscray. You should change to this a “Single Holding” instead of Proportional.
SC12.3 is rather funny, I’m not sure if they will actually enforce it. You will get charge if you make any changes after completing Duties Statement, for example let say you change your phone number, or residential address, you will get charge $88. Rarely do we come across this.
As there is no photo of the back property (house), we not quite sure of the conditions, however we still recommend to have a thorough look at the property, take lots of photo to avoid dispute of what was or was not damage. If in doubt, a Building Report can be arrange prior to Auction.
Vendor’s Statement / Section 32
- There is no Gas supply, that is rather odd considering it is Footscray. So if you want Gas you will need to connect to the property, which can be costly. However with climate change issue at the moment, the government don’t like install Gas and want everyone to use Electricity.
- There is no easement on the property at the back. No Easement at the back, lucky you. Usually the water pipe is there, look like your neighbour have it… considering this, the council may force you to have one.
- Land size is approximately: 597m2, good size, may be able to build 3-4 Townhouse here if you are an developer.
- This property is a General Residential Zone, lucky, so you can build house on it. But if you want to do it like Commercial+House like the original property it will be more difficult now.
- This property is NOT in Bushfire Prone Area. There is a water area not too far away. I often see boat and fishman using this river.
- Council rate is estimate to be $3500 yearly, – wow it is high! But it quite standard for property in Footscray. The council valuing it at $1,200,000 already, my personal prediction this probably will probably go for $1.5m as a minimum. The opening bid will determine the final price. The owner have quite a high Council Arrears, considering their age perhaps they just overlook it. But this is not of your concern, they will have sufficient money at settlement.
- Water rate is estimate to be $680 yearly. Quite standard.
- If you were to buy this property as Investment, it currently Landtax is $6279 at the moment! Wow, you need to try to get Special Condition 11 to be Single Holding and it will save $1-2000 at settlement, we be adjusting it at $4175 instead.
- The property is not subject to Lease, purchase will be vacant possession. If you are buying this for investment, we can refer you to a property manager to assist you.
- Clear Title, also look like the owner passed away, condolences to the family. The property is being sold by their Executor.
In relation to signing the contract:
Particular Page 1: Your full name should be the same as your Passport name, also to include the phrase or wording, “AND/OR NOMINEE” at the end. For example: “Ocean Nguyen AND/OR NOMINEE”.
Particular Page 2: If you choose to take on our services, please include the following details under the “Purchaser’s Legal Practitioner or Conveyancer” section.
Oceantralian of Suite 10A, 100 Furlong Road, Cairnlea VIC 3021
Tel: 0479 126 326
Email: admin@oceantralian.com
Particular Page 3: Payment. 5% to 10% of the deposit on the day of signing, as this is an Auction via EFT or Bank Cheque. You may be given a few days (till Monday if on Weekend) to organize for the remaining balance.
Particular Page 3: Settlement time: standard time for settlement is within 90 days of signing contract of sale. You may also add in the phrase or wording, “90 days OR EARLIER”. However most Auction terms will be between 30 to 60 days.
Please note you usually have 3 business days cooling off, in which you can cancel the contract, however this does not applies if this is purchase at Auction.
Thank you. Yours faithfully,
Ocean
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