So, you are out to buy your dream home. You have been to a few inspections, and finally decided, or about to, that three-bedroom apartment in the inner fringes is the one you want.
Before you take the plunge, it might be worthwhile to go for another inspection of that home, and a thorough one this time to avoid shocks later on.
A while back, investing consultancy Otium shared the most common property investing mistakes.
“When making the biggest investment decision of your life, it sounds simple but care should be taken to fully inspect the property,” according to Otium’s managing director of Accounting David Mason.
“Consider location, target rental market, condition of property and whether it fits in with your criteria, eg. new, near new, run down for renovation, etc. Hire a professional building and pest inspector. No matter how new a property is, there could be an issue with the build that would not be uncovered in any other way.”
It’s important to know that the house you’re hoping to buy is stable and sound. If you don’t carry out a building inspection before purchasing, you could end up in an unsafe house with structural problems or asbestos.
Structural reports and pest inspection can more often than not reveal otherwise hidden problems. Knowing about these upfront allows you to choose wisely, budget accordingly and maybe negotiate on the price.
Those problems will end up costing you a lot of money to fix up further down the line.
Also, knowing about the potential problems or issues make you aware of how or to what extent you can carry out renovations or alterations in the future.
Tip: Before you sign a contract, have a reputable independent builder carry out a building inspection. While they may not be able to catch every problem, they can save you from making a bad purchase
As much as the construction, you need to be aware of the location of the property as well, say Jesse Richardson and Jennifer Duke in a previous post in Property Observer.
Big backyards, high ceilings and nice furnishings are all fun, but is it accessible?
Is the suburb is well serviced by public transport, has good schools, shops close by, medical centres etc all count. The suburb of your prospective purchase is one of the main determinants of its future (and current) value, so pay attention.
Even if the house is perfect, many people search for properties by area, not house type, so it could go unnoticed when you’re trying to sell the home.
It pays to check out suburbs’ median prices and historical price growth.