What inspections should you do before buying
10th May 2007 | category [ General ]
"It's essential to organise a building inspection because most first-home apartment buyers are buying cheaper units [which could mean] they are in poorer condition. A building report can look at the condition of the building and identify anything that may affect it, including fire upgrading, dampness, waterproofing issues and noise transmission, and all the likely major costs.
"Most newer units have patios [which can] have planter boxes filled with soil. They retain moisture and you can get a lot of problems with leakages.
"We also look at any potential acoustic problems, mainly to do with floating floors.
"A building report will check out the internals of the apartment and look at accessible common areas to find out what people are up for.
"I would also recommend a pest inspection if buying villas or townhouses as they are more vulnerable ... high-rise buildings tend to have very little timber."
Peter Cerexhe, author of Smarter Property Investment (Allen & Unwin)
"Do a body corporate search. In particular, check the insurances of the building. Policies tend to go up by the consumer price index, but these can fall significantly behind building costs. Check that the executive committee has not just relied on a pattern of modest increases but has a regular professional evaluation of what it would cost to replace the building.
"You can find out what money is in the accounts, whether there are active disputes within the building and whether significant repairs or maintenance work has been done recently or is planned for the future as that will result in a levy which could be several thousand dollars for each unit.
"Get the search done before you exchange contracts so you have a bargaining chip to negotiate on price. Usually, an expert can undertake the search although you can get an authority from the vendor to do it yourself.
"The minutes of a meeting can be more candid than anything the vendor will tell you. You could be trapped in a place with no harmony.
"The first-home buyer should not think this report is a substitute for sending your own builder to inspect the block."
"Most newer units have patios [which can] have planter boxes filled with soil. They retain moisture and you can get a lot of problems with leakages.
"We also look at any potential acoustic problems, mainly to do with floating floors.
"A building report will check out the internals of the apartment and look at accessible common areas to find out what people are up for.
"I would also recommend a pest inspection if buying villas or townhouses as they are more vulnerable ... high-rise buildings tend to have very little timber."
Peter Cerexhe, author of Smarter Property Investment (Allen & Unwin)
"Do a body corporate search. In particular, check the insurances of the building. Policies tend to go up by the consumer price index, but these can fall significantly behind building costs. Check that the executive committee has not just relied on a pattern of modest increases but has a regular professional evaluation of what it would cost to replace the building.
"You can find out what money is in the accounts, whether there are active disputes within the building and whether significant repairs or maintenance work has been done recently or is planned for the future as that will result in a levy which could be several thousand dollars for each unit.
"Get the search done before you exchange contracts so you have a bargaining chip to negotiate on price. Usually, an expert can undertake the search although you can get an authority from the vendor to do it yourself.
"The minutes of a meeting can be more candid than anything the vendor will tell you. You could be trapped in a place with no harmony.
"The first-home buyer should not think this report is a substitute for sending your own builder to inspect the block."