Charles Corby, a property investor from Victoria, Australia, recently faced an unexpected challenge with his new purchase. He bought a derelict duplex in Derby, Western Australia, for just $69,000 with plans to renovate and split it into two separate titles. However, while waiting for approvals, he was hit with a $1,232 bill for a single lawn mow. This incident highlights the hidden costs and challenges that come with investing in neglected or vacant properties, especially in regional areas.
Corby's story is a cautionary tale for investors. He explains, "While I was waiting for council approvals, the Shire of Derby/West Kimberley issued a Fire Break and Fuel Hazard Reduction Notice. The notice required that the property's grass and vegetation be reduced to no more than 50mm by 30 June 2026, which was a short time frame. They only gave us four weeks to do it, less by the time the letter arrived to our office in Geelong from WA, and they let us know that not only were inspections commencing the day following the due date, but that we have to maintain it until the end of December."
The irony of the situation is not lost on Corby. He notes, "The duplex itself cost $69,000, meaning that single mow came to almost 2 per cent of the purchase price. The property sits on a 1268sqm block, according to its online listing. Airtasker estimates a lawn of that size would usually cost between $150 and $260 a visit for regular maintenance, while badly overgrown blocks or more difficult sites can push the price to $180 to $350 or more."
Corby's experience underscores the importance of budgeting for ongoing maintenance and unexpected expenses, especially when investing in vacant or neglected properties in regional Australia. He advises, "This expense just highlights why investors should budget for ongoing maintenance, notices from council like this, or unexpected expenses, particularly when buying vacant or neglected properties in regional Australia. Vacant blocks don't stop growing because you're waiting on renovation approvals. Councils quite rightly expect owners to maintain their properties, especially in bushfire-prone areas."
Corby's story also highlights the challenges of finding local trades in remote areas. He notes, "We love to employ locals in these regional and remote areas but it’s not always possible due to pricing or availability. We haven’t found someone to maintain the lawns yet but will try local Facebook groups and maybe purchase a mower and leave it locked up onsite, or schedule our trades to do works on our properties periodically to make sure we can maintain the lawns. Lawn care of properties is not something you think about when it comes to holding investment properties that are undergoing renovation, but it’s definitely made me add it into the forecasts now, especially when the price can be so high."
In conclusion, Corby's experience serves as a reminder for investors to be prepared for the unexpected costs and challenges that come with investing in properties in regional areas. It also underscores the importance of budgeting for ongoing maintenance and being proactive in finding local trades. While the $1,232 lawn bill may seem like a small price to pay, it can quickly add up and become a significant burden for investors. Therefore, it is crucial to be aware of these hidden costs and plan accordingly.
