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Home loan lending

Why a property inspection is so vital for lending

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Buying a home can be great – but generally you won’t be able to get one without finance. That’s why understanding what banks are looking for when they give a mortgage will stand you in good stead for starting on your property buying journey. Whether you’re seeking a mortgage from a bank or through a mortgage broker, you may be asked to provide a property inspection report that proves your chosen house is in an acceptable condition. It may seem slightly time-consuming and unnecessary, but you need to make sure that not only the bank is happy with the loan going ahead, but that you can also be assured you are making a fully informed decision. 

Getting a property inspection

Just because a property looks perfectly sound and acceptable doesn’t mean it is. Homes can have issues hidden to the untrained eye, which is why you’ll want to get any property you’re interested in buying inspected by a professional building inspector. A home is usually the biggest purchase you’ll make, so make sure you’re choosing the right home – one that won’t give you unnecessary grief in the future!

The bank cares as much as you do

For a bank to lend up to 90% of the value of a property, they want to know that nothing will stop you from keeping up with your future home loan repayments. If your newly purchased home is quickly in need of expensive renovations, you may need to borrow more money. Likewise, if a home is uninsurable and anything happens, you (and the bank) could end up losing out on a huge amount of money.

While the bank can repossess your property should you become unable to continue paying off your mortgage, they don’t really want to. It’s a liability for them to own a property and an unnecessary hassle to have to sell it. Instead, they want to avoid this possibility altogether by having home loan applicants provide a property inspection report. This ensures they don’t lend you money to purchase a house which is going to give both of you stress! 

Requirements for lending

Different banks have varying requirements for a home loan. Some of these policies might be better for you than others, depending on where you’re at. Make sure you do plenty of research about loan requirements to figure out what’s best – you don’t necessarily have to apply through your normal bank if another is more suited to your current needs. You could also approach a mortgage broker who deals with a large number of lenders and could save you time researching around. 

Banks have different views on what a sound property is. While some banks won’t loan against a house with a worrying inspection report, other banks also won’t approve a home loan for a house that is in an ‘unusual’ location, will be very expensive to insure, or that would only appeal to a very small, niche market. Make sure you chat to you your chosen lender about their individual policies to get a better idea of what is best for you and what to expect. 

Bear in mind that, even with all of these precautions in place and the care you’ve likely put into your application, getting a home loan is a privilege, not a right. Lenders may still decline your mortgage application despite everything being almost perfect. Regardless of whether your application is declined or accepted, you still want to know that a house you are seriously considering purchasing is in a safe and reliable condition. Getting a house inspection from a reliable property inspector is a crucial step in your home loan application process. 

Get a free quote for your property inspection report today.

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It's important for even new houses to be properly inspected

Why your brand-new home still needs a house inspection

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Building a home from scratch has lots of perks. You can personalise the layout and details to suit your own lifestyle and taste, and if everything is brand-new then you can be confident everything will be in perfect running order…. Or can you? While more modern homes are unlikely to face the same costly issues that older homes can, new buildings still have their own unique issues that are important to spot early on. Usually these issues relate to the quality of the build or not meeting the standards laid out in the initial contract. Unfortunately, these issues might not be immediately visible to you, which is why it’s as important as ever to get a house inspection performed by a professional building inspector to make sure you’re getting exactly what you’re paying for.

Speedy builds and quality control

A house inspection is a no brainer when buying an older home to check things like the roof’s condition, the home’s weather tightness, and potential issues with the house. When buying a new home, you could be forgiven for thinking this is a step you can afford to skip. However, as the population grows in New Zealand and the demand for housing increases, we are seeing new homes, subdivisions, and even new suburbs springing up faster than ever before.

This speed in delivery means the issues facing new homes are less ‘wear and tear’ related but are down to quality control, or the finer details being overlooked by rushed contractors or council inspectors. They might not be as costly to repair as issues in older homes, but are worth spotting before moving in and parting with your hard-earned cash.

It’s costing all of us money…

And this isn’t a problem affecting just individual homes. Councils play an important role in all building work in New Zealand, issuing building consents and inspecting the building process at key times before finally issuing a CCC – a Certificate of Code of Compliance. This is to give the purchaser and future owners peace of mind that they are buying a safe and secure home, built to New Zealand building standards. Unfortunately, I have personally inspected many houses which should not have been issued with a CCC due to various defects. Some weren’t serious but should have been identified.

Sadly, in some circumstances a council CCC can’t be relied on to ensure that the building complies with the Building Act or the consent obtained to build the property.

Recently, despite these supposed safeguards, the Tauranga City Council let homeowners down in 2018 when 21 homes in a new housing development were deemed unsafe. These homes were proven in court to be shoddily built and should never have been signed off. As a result, the council was forced to buy back all 21 homes from the owners at a huge cost to the council and, indirectly, to ratepayers.

Builders’ obligations

Luckily, it’s not all bad news. In most cases, your builder or developer is legally obliged to remedy any building issues within your property within 12 months of the completed build and Masters Builders offer a 10-year warranty. Defects might not be immediately obvious to a homeowner, which is why a house inspection performed by a professional building inspector will highlight any areas of concern. That way you’ll get the opportunity to have these fixed by the primary contractor right away at no cost to yourself.

Get a house inspection before moving day

The advantages of a brand-new home go beyond just the new home smell. By choosing a reputable builder or developer, there’s every chance your dream home will be just that – a dream! However, to avoid a nightmare and to be sure you’re getting exactly what you expect, a building inspection will spot any issues big or small and allow you to get these sorted before moving day. Unfortunately, not all new houses are built to a high standard.

Buying a new home? Do your due diligence with a house inspection. Get a free quote today.

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Making sense of property jargon: reports, tests, and building inspections

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If you’re new to the property game or you’ve been sitting on the sidelines for some time, the range of tests, building inspections, and reports at your disposal can be both daunting and overwhelming. Before bidding at auction or putting an offer on paper, it’s important to do the groundwork and request the right reports and inspections to save yourself time, money, and heartache further down the track.

Pre-purchase property inspections, meth tests, LIM reports, property files… You’ll hear a bunch of terms throughout your property purchase journey, so it pays to understand what they mean before you get in too deep. Here’s a rundown of what these all mean and how they can help you make the best possible property purchase.

Property File

The local council is a wealth of information when it comes to purchasing property, and getting your hands on the property file is one of the first steps to understanding a property you’re looking at. The property file is a collection of all the documents the council holds on a particular property, including construction plans and any correspondence with the council.

You can request the property file from the council yourself and on most properties, you can visually match any works or alterations to the property with the information in the report. If there’s no record of any additions, the works could be non-permitted or non-consented and potentially costly for the new owner. Check out our guide to non-consented works to find out more about using your property file to avoid any issues with non-consented works.

LIM Report

Like the property file, the council also holds the Land Information Memorandum (LIM) for a property. The LIM report is a summary of all information about a property and includes rates, building consents, development of the property, and potential risks such as flooding or erosion. Prospective purchasers can request the report from the council, though it is often supplied via the vendor’s real estate agent. Have your lawyer cast an eye over the report to spot any potential risks or issues with the property before making an offer or heading along to auction.

Meth Testing

‘P’ houses and meth labs have all been hot topics in the news in recent years and no one wants to risk their family’s health or their investment by buying a contaminated property. Detecting meth contamination is a specialty test performed by professionals who swab sections of the property and analyse whether there is any level of contamination.

Smoking or producing the illegal drug can contaminate a property and a positive result could make it hard to secure tenants and impact the future resale potential. It’s expensive to decontaminate a property so if you have any concerns, have the property inspected by a professional before making an offer. Although I don’t offer this specialist service myself, I’m always happy to recommend someone so just get in touch.

Building Inspections

Of course, before writing an offer on a property or waving that hand around at an auction, building inspections are a critical step to provide peace of mind with your purchase. When performed by a professional building inspector, a building inspection will spot major defects or issues with the property and identify areas that could prove to be problematic in the future. The findings of a building inspection report may even provide an angle to negotiate on price. A building inspection will check moisture levels, foundations, structural conditions, building materials, and more. Having a professional building inspector give their unbiased report can eliminate unwelcome future surprises and give you the confidence to secure your new home or investment.

Keen on a property and ready to get a building inspection? Get a free quote today.

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Home inspection report – calculating costs for maintenance

Why a home inspection report won’t give you future costs

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A home inspection report is all about preparing you for the future. It highlights areas of a home you’re considering buying that may cause you issues in the future, or are likely to need significant maintenance quickly after purchase.

However, many people ask whether I can include estimated costs for future repairs or maintenance in a home inspection report – and unfortunately that just isn’t feasible. Here’s why:

  1. Costs change constantly. In today’s market, builders have plenty of work on – so they’re able to adjust their prices to suit. Additionally, the cost of materials can change, so the overall cost to you can vary hugely.
  2. Repairs can be a Pandora’s box. In a home inspection report, I’ll give you the most accurate, honest view of a home’s current state. However, if something is behind the walls and you haven’t booked invasive testing, then it can be hard to know what else you’ll find when renovating or repairing.
  3. You’ll need to talk to a specialist. Although I may able to estimate how much something might cost from my years of experience, it’s the specialists who can give a truly accurate view. For example, if I discover asbestos then I will, without a doubt, tell you about it – but you’d need to talk to an asbestos expert to know how much it will cost to definitively remove it.
  4. Everyone has different needs. One person may go for a straight repair; others may want to also improve a home when they do repairs or maintenance. You’ll have your own preferences and desires, which will affect the cost of repairs or maintenance.

The good news about a home inspection report

Luckily, although I can’t give you repair or replacement costs, I can still give you a lot of information that will help you budget for the future. In a home inspection report, I’ll highlight issues with cladding or weathertightness, roofing, bathrooms, kitchens, insulation, hot water cylinders and more. You’ll receive an upfront, honest view of the home’s current state so that you can make a more informed decision about buying.

I’ve also put together a guide to some of the most common costs you should consider when buying an existing home – read it here.

If you, or someone you know, are looking to buy and need to make a more informed decision, get a free quote for a home inspection report today.

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Non-consented works and a pre-sale building inspection

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The Building Act 2004 updated the previous 1992 Building Act and is there to protect us from shoddy building work and unsafe housing. Unfortunately, there are still plenty of properties out there that don’t adhere to the current Building Act. Some because they were built before the Act came in – and some because of non-consented works and poor building practices (which I’ve seen far too often when carrying out a pre-sale building inspection).

Non-consented works are those which haven’t been checked by the local council and given a CCC (Certificate of Code of Compliance) to prove that they adhere to the Building Act, or that they have obtained a building consent. CCCs are issued after the 1992 Building Act was introduced; prior to this, houses required a building permit. They may be perfectly well built, but unless they’ve got a CCC, there’s no way that buyers or lenders can know that.

As banks get tougher and buyers get more careful around what to invest in, having non-consented or permitted works on a property can be a real problem. If the council has no record of non-consented or permitted works, you could be in trouble.

The mystery behind non-consented works

Let’s talk about non-consented works (or at least those completed post July 1, 1992). Why would a home have non-consented works in the first place? Well, there are a number of reasons a renovation, extension, small change, or even full build may not have a CCC. The Building Act states that the owner is responsible for applying for the CCC. However, this may not have happened for various reasons and could have slipped through the cracks.

With our number 8 wire mentality here in NZ, it’s also possible that a handy DIY-er has added a bedroom, changed an office to a bathroom, or made other changes to the house without realising they would need to get a building consent. Or they may have just chosen to ignore it!

Getting non-consented works approved

So, if a home you’re trying to sell has non-consented works, what can you do about it?

Firstly, order your house’s property file from your local council. This will have all their official information about the property, and you can check to see whether what’s on the property file matches what is actually part of your home. If it looks like the property has non-consented works, a Certificate of Acceptance (COA) may be required.

The process of getting a COA is involved and may not be considered by the council if the non-consented work doesn’t comply with the building code. You’ll need the help of a council-approved specialist who deals with these types of issues. The initial meeting will let you know if it is even possible to get a COA.

Best case scenario after the meeting with the approved person is an application being made on your behalf to get a COA. Plans and any relevant documentation of the non-consented works will have to be provided, and a meeting with the council will take place to discuss the COA application.

All going well, the council will make a site visit and either approve or not approve the COA application. The submitted plans and any relevant other documentation will be lodged with the property file, but the council takes no responsibility for the non-consented works.

At least now when a property file is requested for your property in the future, there is a record of what has been done.

Worst case scenario? The council issues you with a notice to fix, which may mean you need to remove the non-consented works – at your cost.

The scenario for non-permitted works carried out before 1992 requires a Safe and Sanitary, Third Party Inspection Report – that’s another story but a similar process.

Avoiding non-consented work issues

So how can you avoid having non-consented works on your property? Well, the biggest thing is to be careful who you’re getting to do work – whether it’s building an extension or re-doing your kitchen. Look for references and reviews, consider whether the person carrying out the work is a Licensed Building Practitioner (LBP), and ask them whether the work requires a building consent?

If you’re doing work yourself, make sure you know the requirements. My advice is always to check with the council and get the response in writing, as “I spoke with John Smith at the council and he said I didn’t need a Building Consent” won’t stand up when scrutinised!

After all, when it comes time to sell, you don’t want to be met with any nasty surprises that could jeopardise your sale.

Getting a pre-sale building inspection

Unfortunately, many houses I inspect have had alterations carried out which may have required a building consent. Obtaining a property file is one way of comparing apples with apples. A pre-sale inspection is one way of identifying if you have any potential problems or maintenance which you may or may not wish to resolve prior to going to market.

Ready to sell? Be prepared for any nasty surprises with a pre-sale building inspection. Get a free quote today.

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Woman warm in cold house

STAY WARM THIS WINTER WITH A PRE PURCHASE BUILDING INSPECTION

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With the colder months about to hit hard and fast, it’s time to start thinking about whether or not the heating appliances in a home you’re looking at purchasing can effectively keep you warm throughout winter. You don’t want to put up with the same winter woes rattling your bones this year, so we’ve outlined some of the best tips for making sure your home is snug and dry – and looked at why you must get a pre purchase building inspection if you’re looking to move. After all, you’ll want to be in the know on how expensive it’ll be to keep your home warm, and what kind of heating appliances will be best for you.

Signs your home is a cold trap

High energy bills. You might not notice extreme shifts in the temperature of your home because your heating appliances are working overtime. But you will definitely notice on your monthly power bill. If your bill seems a little high, perhaps compare it to a bill from the same month the previous year. If there’s a radical increase, your home’s insulation may have deteriorated.

Chilly walls. By doing a simple touch test, you can determine whether or not your home is insulated effectively. When you put your fingers to the interior walls, floors, and ceilings of your home, does it feel cold to the touch? The interior should feel warm and dry if the panelling has decent insulation behind it.

Abnormal temperatures. If you notice different rooms have varying temperatures that seem to fluctuate (for example, your dining room is always freezing but your lounge is always roasting), chances are your home is under-insulated. You may want to check out the padding in the frame.

Heating appliances to consider

Heat pumps. If you’re after a convenient appliance with a low running cost that instantly produces heat, then a heat pump might be the best option for you. Just be aware they must be sized correctly for the space in order to work effectively. And always look out for the energy star rating as some are more efficient than others.

Modern woodburners. We all know there’s nothing more comfortable than having a roaring fire going while you relax on the couch. A modern woodburner fireplace is cheap to run (especially if you can access cheap firewood), they can heat large spaces, and they produce very little pollution. Just be aware you’ll need a building consent to install one.

Electric heaters. While these are more expensive to run than most other heating appliances, they are ideal for heating small spaces in a small amount of time, and they are cheap to buy. They’re generally more suitable for environments that don’t always require a heater, such as bedrooms.

A pre purchase building inspection before you buy

If you’re looking to buy a home, be on the lookout for how equipped each house is to handle the damp conditions we know all too well in New Zealand homes. Does it show any of the signs that demonstrate it’s a cold trap? What kind of heating appliances are already installed?

Before purchasing, check out if the house has double glazed windows, decent insulation (wall, underfloor, and ceiling), and what heating solutions are already in place. That’ll give you an idea of how much money you’ll have to put into heating upon moving in and is why we always recommend getting a professional to conduct a pre purchase building inspection – so you know what you’re getting into.

Stay toasty this winter

While there are a few simple queries you can raise with your realtor about the heating of your potential home, having an expert assess the property is always the best call. You may think you’re getting a really good deal on a home, only to find it’s incredibly expensive to heat or requires a whole lot of work done to ensure it’s properly insulated. Get a pre purchase building inspection report before you buy, so you can rest assured your dream home will keep you toasty this winter.

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Home maintenance

Preparing for the worst: Maintenance funds and property inspection reports

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Imagine. After years of saving enough for a deposit, you’ve finally been able to put together enough pennies to buy a home that ticks all the right boxes. Or you’ve been living in an old, tiny home for years and now you’re finally ready to upgrade to a bigger, better home. With all your furniture moved in and the bliss of owning your own home still being felt, you begin to settle into paying off your mortgage. But what happens when a few weeks in, your water main blows, and after spending all your savings on the house, you can’t afford the heavy bill?

When you’re a homeowner, anything that goes wrong is entirely your responsibility. That’s why it’s not only a good idea to get a property inspection report so you know what you’re getting yourself into, but it’s also essential that you start a maintenance fund — before you buy. And if you’re buying a property to rent, it’s even more imperative that you have savings set aside in case serious maintenance is required down the line.

Safeguarding your investment.

Your maintenance fund is the savings you accumulate to set aside in case anything goes wrong with your property that will need fixing. Building a maintenance fund is the most concrete way of protecting yourself against future financial strife.

Whether it’s regular maintenance to make your property stay in good shape longer or fixing something that’s unexpectedly broken, maintenance is a beneficial investment. Keeping your home in great shape will help it increase in value, while regular home maintenance can help you avoid bigger costs down the line. By consciously factoring in the maintenance of your home, you’ll be safeguarding your investment.

Building your maintenance fund.

Buying or owning a home always includes an element of risk, and you should be factoring this into your monthly budget.

We recommend setting aside 1-5% of your income each month, depending on what’s feasible for your situation. There are loads of savings tools out there to get the ball rolling and help organise your finances – apps like YNAB can help you plan ahead and build up your maintenance fund. Otherwise, consider putting money aside into a separate bank account (perhaps with a different bank) that you don’t touch except in the case of emergencies.

Get a property inspection report.

It’s important to get your budgeting sorted before you buy a new home but having a professional building report conducted on the property first is equally as vital.

Looking out for areas that may require serious maintenance down the track can be challenging if you don’t know what to look out for. You’ll need to know what could require fixing, replacing, or heavy upkeep before you make the big purchase. This could include (but isn’t limited to) replacing that old roof or aging hot water cylinder – both could cost several thousand dollars to replace.

Many people take the risk and don’t get a pre-purchase inspection report done before buying – instead, they discover issues once they take possession! Getting a qualified pre-purchase building inspector to give your potential new home a thorough look over to identify the potential risks is your best chance of making sure your home won’t cost you a fortune in the long run. At best, you’ll avoid any big fix-up or maintenance costs, but at the very least you’ll know what to prepare for so you aren’t hit with lots of nasty surprises on move-in day. The cost of a pre-purchase inspection is a drip in the ocean in relation to the cost of the house.

Get a quote for your property inspection report today.

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rainy day in the garden

House Inspection and the 4 Ds: How can you assess the risks of a new property?

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Whether your taste in homes is big and beautiful or small and humble, considering the risk of a particular design of a house should have a huge impact on whether or not to purchase a property – especially in a country with a reputation for damp homes! If you were to conduct a house inspection before buying, would you know what low-risk design looks like if you saw it?

 

Conducting a house inspection

The first thing you should be thinking when doing a home inspection is KISS. Not that kind of kiss (despite how attractive your property inspector is). We’re actually talking about the classic golden rule for us Kiwis: Keep It Simple Stupid.

If you’re looking around a home that you’re interested in buying, and the design seems too complicated or intricate there’s a high likelihood that the design will increase the risk for water ingress. The simpler the design of the house, the fewer opportunities there are for issues to rear their ugly heads later down the track.

 

Avoiding damp housing

In New Zealand, with our unpredictable variety of weathers and temperatures, we’ve established a reputation for having damp homes. You see it in the news all the time. That’s why when you’re out there house hunting, I recommend thinking about the four Ds of building: deflection, drainage, drying, and durability. Better yet, consider getting a pre-purchase house inspection conducted to check for the four Ds before you sign anything. But what are the four Ds?

 

  1. Deflection

Deflection encompasses what a home has in place to intercept water at its exterior and deflect it away to decrease the risk of water ingress. Consider the type of cladding, roof and eave width. These all impact the house’s ability to deflect water from getting in and rotting the framework from the inside out.

 

  1. Drainage

Drainage is obviously crucial to any home but is often something that gets overlooked by house hunters. Generally cladding of houses built before the 2004 Building Act was not on a drained cavity system. Drained cavity systems are designed to discharge water that may penetrate the building envelope through cladding, weather tightness risk junctions, and possibly from leaking joinery.

 

  1. Drying

The cavity allows water to discharge from behind the cladding and also allows air to dry the cavity to prevent moisture damage. Cladding fixed directly to the wall framing is most cases does not allow water to exit the building envelope and can lead to moisture damage of wall framing.

 

  1. Durability

The durability of the home’s structure is so important, especially with the variety of weather we are exposed to here in New Zealand. The Building Act only requires cladding to perform for a minimum of 15 years. Most cladding systems have a longer warranty than this and, with maintenance, can last for many years longer than what the manufacturer warrants. Obviously that type of cladding is something that should be seriously considered when purchasing a property. I see many 30+ year old houses with cladding that needs replacing. Small amounts of cladding can be replaced under Schedule 1 of the Building Act, but if a substantial amount of cladding requires to be replaced, then a Building Consent is required. This could have a big financial cost to keep the property water tight.

While it’s a great idea to consider whether a potential purchase has a low-risk design, sometimes the specifics need to be overseen by a professional. Having a qualified pre-purchase building inspector conduct a house inspection to look over complications of the design and cladding type is your best chance of making sure your potential home is built to last, and won’t cost you a fortune in the long run.

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Handing over the keys

How to get your ducks in a row: Careful planning and a pre-purchase building inspection

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After hunting high and low, finding that perfect home or property is an exciting and satisfying discovery but actually signing the deed and making the purchase can be a pretty stressful process. Once you’ve signed your name you’ll likely have the thought racing through your mind, “What if there’s something wrong with the place that I didn’t notice before?” Having a pre-purchase building inspection is an important step in relieving that anxiety but there are a whole lot of things you can do to protect yourself when buying a home.

Being organised and doing the groundwork is the easiest way can feel confident in your investment and ensure the buying process is as smooth as possible. Here are a few things to consider when it’s time to go unconditional:

Pre-approval first!

When you know that it’s the right time to dive into house hunting, you might want to consider seeking pre-approval from your bank or lender. That way, when you do find that perfect property, you are ready to go and won’t miss an opportunity. Unfortunately, getting that approval can sometimes be pretty tedious and time consuming. Lenders need to do a whole lot of background research into your finances, such as your income, credit history, and expenses.

With a pre-approval in place you’ll have a better idea of homes that are within your budget, saving you time and avoid disappointment later. Giving them the time they need to approve your loan request is a great first step when you embark on your hunt for your dream home.

Extend time for due diligence

Due diligence is your way of eliminating any doubts you may have and allowing the time to back out of the deal if you notice something’s not quite right. That’s why getting a comprehensive appraisal of the physical and financial risks of your potential new home is a really important step in the home buying process. While it’s ideal to get a pre-purchase building inspection before you make an offer, sometimes you just don’t have time when you are trying to swoop in on a great deal.

Extending the time for due diligence is your way as the buyer to safeguard your investment by giving you the time to get a building inspection company to review any potential risks and make sure that all your ducks are in a row. If they offer 5 days, request 10 (or even 30) to give yourself the time you need to get the most thorough review of the property that you can, as well as plenty of time to sort finances. There are so many variables that add or take away value from a house to consider. Having enough time will alleviate the stress.

Get a pre-purchase building inspection

You wouldn’t buy a car without popping the hood and making sure the engine isn’t about to fall apart, and buying a house shouldn’t be any different. But unless you know what to look for, getting a professional to check out the bones of a house and any structural concerns is your best bet at making sure you are aware of all factors impacting the value of your investment.

Having a pre-purchase building inspection will also make getting that final approval on your home loan a whole lot simpler and can help you negotiate on the price of the property if you do discover any significant issues.

Go out on a LIM

Local councils compile what is called a Land Information Memorandum (LIM) for your property – which is basically a record of information about a property including rates, building consents, developments of the property, and any potential risks such as flooding or erosion.

While you are likely to get a copy of the LIM from the real estate company, remember that they are representing the seller and their best interests. Make sure it’s a recent version and consider requesting one from the council yourself.

Get the Council Property File

Alongside your LIM, be sure to get the Council Property Files – the easiest way to compare what is on file at the Council to what you are looking at to buy. Property Files include construction plans if they’re available, although unfortunately due to the age of some properties and amalgamation of Councils, plans and documents can get lost.

Take the stress out of the home buying process and do some homework before you sign. Being organised and covering all bases is essential to safeguard your investment. Having a professional building inspector weigh in on the value of the property will rid you of any doubts and make buying your perfect home is exciting – not a pain in the neck.

Get a quote for your pre-purchase building inspection now.

man doing property inspection report in kitchen

Property inspection report now, save later — Avoiding hidden costs

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Buying a property is likely one of the most expensive investments you’ll make in your lifetime, so making sure you’ve done your homework before signing the dotted line is essential. The last thing anyone wants is to invest their hard-earned savings into a risky property that has more work to be done than it’s worth. Getting a pre-purchase inspection report from a professional is the easiest way to ensure the house of your dreams is all that it seems, but there are some factors you can look out for yourself.

Everyone knows to consider mortgage costs (and hopefully everyone knows to factor in if interest rates rise) but what about all the other costs involved with owning a home? When looking at a new property, what else should you consider? How do you go about giving your ‘would be home’ a pre-purchase building inspection of your own?

Here are a few key things to look out for to determine whether the home you are interested in buying is at the standard promised, and to help prevent any headaches down the line.

 

The position of the home

When checking out the home, make a property inspection report of your own (or ask a building inspector to), noting the impacts of the environment where the home is situated.

Is it on a slope? It could be impacted by surface water or flooding when it rains. Is it on the coast where the salty air can rust the joinery? Is the property exposed to too much sun for the type of cladding impacting the paint work and condition of the cladding? Where your home is located can have a big impact on maintenance in the long run.

And that’s not just in terms of location on a site either – where the home is located in relation to where you work is important too. Commuting costs are important to consider when buying a home as these can stack up in the long run – do you have affordable public transport options? What’s the traffic like during peak times?

 

Changes required

Is the kitchen and bathroom way out of date and in need of an expensive reno? Is there any internal water damage indicating a leak somewhere that may cost you a fortune to fix? How old is the hot water cylinder? What is the condition of the roof, insulation?

Making sure you have factored into your budget any urgent or necessary adjustments you’ll have to make to the home either straight away or later is incredibly important when doing a home inspection.

Take a couple who I did a property inspection report for recently who were first home buyers. They were looking at a weatherboard house from the late 60s. It was listed at a good price, but it had no patio area and everything was original. Great bones but would have required a substantial amount of money to bring the property into the 21st century. This ultimately influenced their decision on whether to purchase and to how much they wanted to pay for the property.

 

Maintenance

How much it will cost to maintain a property is sometimes the hardest thing to predict. Whether the property has a large garden and extensive landscaping to tend to or other significant upkeep, multi-level homes on steep sections may require scaffolding to maintain, these are things to consider before deciding to invest.

 

Investing in a property inspection report

Your time and money could be on the line if you invest in a new home without factoring in additional costs. Although these pointers are helpful to consider, having a pre-purchase building inspection is the best way to identify anything hidden that could be an added expense or a pain to fix in the future.  Investing in a pre-purchase property inspection report is the most definitive way for any home buyer to make the best investment possible – so get a free quote for yours today.