Only the very wealthy can afford to be cavalier about building inspections when buying property. Once a contract on a house or apartment is signed, it’s legally binding. The law provides little protection for unsuspecting buyers who have not done their due diligence, and often it is only after settlement that any faults in a property become obvious.
The chances of buying a property with costly-to-fix defects are on the rise. Auction clearance rates and house and apartment prices have increased in many Metropolitan areas during the past six months and investors are taking out home loans at a faster rate than owner-occupiers.
In a more crowded market, it can be tempting to make a rushed decision. The possibility of making quick gains also attracts ”pick and flick” buyers.
These buyers scour the market in search of bargains. Many undertake a renovation in the hope of selling in the short term and turning a profit.
There’s nothing inherently wrong in this – it’s free enterprise, pure and simple. But you need to exercise care that you don’t get saddled with a dud.
Many buyers start behind the eight-ball by purchasing a property without having arranged a pre-purchase property inspection, only to find they face many unbudgeted costs after taking possession
Unbudgeted costs for repairs, such as rewiring, can run into tens of thousands of dollars and can blind-side buyers.
Many people think houses have more problems than apartments but this theory is being tested.
Water leaks are among the biggest issues facing apartment buildings. Water can damage apartments through the poor sealing of balconies, a lack of roof maintenance and the deterioration of the tanking in below-ground car parks and basements.
What you see isn’t necessarily what you get, and defects can appear five years after the keys are handed over. Using cheap materials and cutting corners to save money have proven to be a temptation all too great for some professional renovators
Always ensure you hire a building inspection company who utilise fully licensed and registered builders to undertake the building inspection for you to ensure you buy a home, not a headache