Replace Pipes or Install New Water Heater - Investment Property

nomisg on 04/12/2023 - 14:49
Last edited 04/12/2023 - 18:18 by 1 other user

Howdy, so recently settled on an investment property in Adelaide/South Australia.

During settlement, someone decided to remove all the external copper pipping work. Left the mains water running and created a gas leaks. Fun times. Seller/Vendor was unable to get the issue fixed in time, so provided me a decent credit during settlement.

So now I'm trying to get the place ready for rent. Of course I need to replace all the water pipes. But the gas might be another matter.

Property currently has a very old gas powered water tank, not an instantaneous unit. Its massive and I'm dubious about its lifespan. It also has a gas powered heater in the lounge room, once again very old and same room has reverse cycle anyway. There is also a gas powered cook top and oven.

I hear there are rebates from switching from gas to electric for the water heater and even appliances, but struggling to get my head around it all. Called https://yess.net.au , but they advised they only deal with owner occupiers, not sure if its just them or rebates in general are only available to owner occupiers full stop.

Trying to work out the best way forward.

Cheers in advance.

Financial

Comments

  • Stewardo on 04/12/2023 - 15:09
    +2

    Replace with PVC pipe

  • MS Paint on 04/12/2023 - 15:28
    +16

    Does the dishwasher still work? Asking for a tenant.

    • Lord Fart Bucket on 04/12/2023 - 15:36
      +2

      Love it.

    • DashCam AKA Rolts on 04/12/2023 - 16:09
      +1

      Thanks for asking. Cheers.

    • JimB on 04/12/2023 - 16:18

      Someone please let me in on it.

      • MS Paint on 04/12/2023 - 16:19
        +4

        lol

        • JimB on 04/12/2023 - 16:23

          Thanks, I looked into the OP's history but couldn't find anything.

          haha Some people shouldn't be landlords.

  • blitz on 04/12/2023 - 15:34
    +5

    Pffft why can't the tenant bring their own water heater, like they bring their own dishwasher and clothing?

    • Lord Fart Bucket on 04/12/2023 - 15:37

      There's water. Compared to ice, it is hot.

  • bemybubble on 04/12/2023 - 15:43

    Did you have insurance taken out on the property prior to finding out this happened?

    If you took insurance out when you signed then you'll prob have a claim…

    • Ozbar Gain on 04/12/2023 - 15:46
      +2

      Damage happened before settlement. Surely you can't insure a place you don't own yet (I. E. Pre settlement)

      • bemybubble on 04/12/2023 - 15:48
        +4

        Absolutely - should always insure on contract date. Because if the house burns down before settlement and the other party doesn't have insurance (or adequate cover) then guess what you'll be inheriting…

      • Drakesy on 04/12/2023 - 15:55
        +3

        Initially i was of the same understanding, but @bemybubble is correct, you should take out insurance the day you sign a contract. There was a precedence on here i believe where there was an accidental, significant kitchen fire post contract but pre settlement and because they weren't insured the new owners had to wear it.

      • MS Paint on 04/12/2023 - 16:22
        +2

        If you are taking out a mortgage on the property I believe the bank makes you get insurance and provide them with the evidence asap after signing contracts.

        • ginormousgiraffe on 04/12/2023 - 16:56
          -1

          The bank will only require you have insurance on settlement day, you don't need it before and you can cancel it the day after.

          • MS Paint on 04/12/2023 - 17:25
            +1

            @ginormousgiraffe:

            In Queensland, once the contracts are signed and exchanged, the buyer is responsible for the property from 5pm on the next business day.
            In Victoria and New South Wales, the buyer is responsible for any damage to the property from the settlement date.
            In the Australian Capital Territory, Tasmania, and South Australia the buyer is responsible for any damage to the property during the settlement period
            In Western Australia and the Northern Territory the buyer is responsible for insurance on the property in one of two ways:
            On the date the buyer is entitled or given possession (e.g. inheritance or a divorce settlement)
            Or on the date that the full purchase price is paid as part of a settlement; whichever comes first.

            • ginormousgiraffe on 04/12/2023 - 19:18
              -1

              @MS Paint: You are responsible but don't need to be insured.

              • MS Paint on 04/12/2023 - 19:42

                @ginormousgiraffe: You'd be bloody crazy not to. As I said earlier, if you're responsible, and the bank has an interest in the property then I'm certain they require you to (depending on your state)

                • ginormousgiraffe on 04/12/2023 - 21:10
                  -1

                  @MS Paint: Sure you would be crazy not to, but having just purchased a place in the last year you need your insurance details two days before you settle with the policy only needing to commence on settlement day.

        • nomisg on 05/12/2023 - 07:52

          So yes, we did have insurance from mid October and the issue (stolen pipes) was discovered on the 28th of October. But the property was vacant for months (which I believe might cause a problem) and we did receive funds from the vendors for the repairs.

  • Switchblade88 on 04/12/2023 - 15:56
    +2

    Have you tried asking your state government about their energy efficiency rebates?

    I'd be getting rid of all gas appliances regardless and you're already halfway there.

  • saltypete on 04/12/2023 - 16:12
    +1

    Sorry to hear about this theft for you.
    I live in SA and recently changed a dead instantaneous gas unit to a heat pump system. I got extra council rebates, but the base changeover cost was about $1000 more than putting another gas unit in. I also had higher electrical and plumbing costs, so your situation may be better.
    We used Mac Trade services who are set up to manage the rebates etc.
    You may get extra rebates for the gas heater removal and putting in a RC air con - and you may also get an extra rebate for getting rid of gas altogether - I don’t know.
    We were pretty happy with the contractors, the management of it all and the actual HWS too. I was sceptical about whether the price may have been inflated to gouge the rebate, but this didn’t happen. 👍

    Happy to get rid of gas completely and the service fees, but your choice whether to do this for a rental. I would, but it depends on your situation.

  • JimB on 04/12/2023 - 16:17

    Just fix it whatever needs fixing.

    Leave the gas cooktop and stove.

    Most tenants prefer gas over induction/electric, plus gas cooktops/ovens last forever due to less electric components/moving parts.

    You replace the hot water system now, that won't be a tax deduction, so fix it when it needs replacing.

    • zoob on 04/12/2023 - 16:44
      +1

      I don't think it makes a difference if he replaces the hot water system now or later, it would be depreciated over however many years the ATO have specified either way. If he's getting a plumber out anyway, it may work out cheaper to get the lot done.

  • Almost Banned on 04/12/2023 - 17:10

    Had something similar to a house we bought - but we were demolishing it anyway so the only one who missed out was the demo contractor…

  • AustriaBargain on 04/12/2023 - 18:16
    +1

    Just demolish the house and put in some Anko branded tents. Your tenants should consider themselves lucky to even have land to live on, let alone luxuries like "pipes" and "gas".

  • Minimum chips on 05/12/2023 - 08:57

    Swapping to electric may depend on what kind of wiring is in place. Switches etc may need to be upgraded. If you do go electric you can save by putting in a 2nd hand stove. The standard white electric 4-burner 60cm one goes for around $200 used and last forever.

    For user health and the environment, electricity is better. For a house you live in, electric is probably wiser with the increasing price of gas, access fees $200/yr, and cap on efficiency. But from an investment prespective redoing the gas pipes is probably the cheapest option.

    You can remove/not connect the gas heater to save all the piping in that direction since there is reverse cycle aircon there. Ask how much more it will cost when you get quotes.

    Regarding rebates: it would help to know which state you are in. There should be a fairly clear and easy to find page from your state government which explains what they offer.

  • nomisg on 07/12/2023 - 21:45

    Thanks everyone for you thoughts and advise, very helpful

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