Protect yourself from dodgy property cover ups

Protect yourself from dodgy property cover ups

RateCity shows you why you need to know what you are getting yourself into before you buy a property.

August 27, 2010

Some people will do almost anything they can to cover up major problems, especially if money comes into the equation. Take buying a house, for example. We have all heard of cases where the seller has covered up an issue for the purpose of selling their house at a higher price. The poor buyer is none the wiser and as the cover-up is usually temporary it ends up costing them more to fix properly.

Unfortunately there are some dodgy people out there, but there is a way to save yourself and your wallet from problems popping their ugly head up later down the track.

Uncover any issues before they arise
Purchasing an existing property can have a number of advantages and disadvantages, however whether you choose to buy it or not could all depend on your pre-purchase property inspection.

A pre-purchase property inspection is done before you decide to make an offer on a property and highlights any major issues with the property that could cost you loads of money down the track.

Basically it reports the current condition of the property and any major issues such as cracks and movements in the walls and ceiling, problems with the roof and any safety hazards.

This report can not only save you money but, depending on the outcome of the inspection, you can use it to negotiate the price of the property – that is if you still want to make an offer. Also, if you discover there are issues arising with the property, again depending on what the problems are, it is up to you whether you seek further specialist advice so you can determine the extent of the problem, if and how it can be rectified and how much you will be up for.

While the inspection covers most areas of the site such as the interior and exterior of the dwelling, the roof and under the floor space, it will not include any minor defects, any detection of termites, repair costs and any sections that were inaccessible. If there is a certain area of the property that you want included, make sure you inform the inspector of this. If this is not possible, there are other inspection reports you can arrange.

Cover all your bases
There are a number of other types of reports that you can organise to have such as:

  • Special-purpose property report. This is similar to the pre-purchase property report but shows the approximate costs involved for fixing any problems, any minor issues present and a recommended list of repairs and work required.
  • Pest inspection reports. This report shows whether termites or any insects are present that may cause damage to the structure of the property.
  • Pre-sale vendor report. Some vendors selling their property may arrange to have their own inspection done, however for your total peace of mind it may be beneficial to get your own report done just in case.

Once the inspection is done and you are happy with the results, there are a number of home loans available for purchasing an established property. Whether you decide to purchase the property for investment reasons or to live in yourself compare home loans online to find one with a lower interest rate and save yourself even more.

 

 

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What is appraised value?

An estimation of a property’s value before beginning the mortgage approval process. An appraiser (or valuer) is an expert who estimates the value of a property. The lender generally selects the appraiser or valuer before sanctioning the loan.

What is appreciation or depreciation of property?

The increase or decrease in the value of a property due to factors including inflation, demand and political stability.

How will Real Time Ratings help me find a new home loan?

The home loan market is complex. With almost 4,000 different loans on offer, it’s becoming increasingly difficult to work out which loans work for you.

That’s where Real Time RatingsTM can help. Our system automatically filters out loans that don’t fit your requirements and ranks the remaining loans based on your individual loan requirements and preferences.

Best of all, the ratings are calculated in real time so you know you’re getting the most current information.

How much are repayments on a $250K mortgage?

The exact repayment amount for a $250,000 mortgage will be determined by several factors including your deposit size, interest rate and the type of loan. It is best to use a mortgage calculator to determine your actual repayment size.

For example, the monthly repayments on a $250,000 loan with a 5 per cent interest rate over 30 years will be $1342. For a loan of $300,000 on the same rate and loan term, the monthly repayments will be $1610 and for a $500,000 loan, the monthly repayments will be $2684.

What is a valuation and valuation fee?

A valuation is an assessment of what your home is worth, calculated by a professional valuer. A valuation report is typically required whenever a property is bought, sold or refinanced. The valuation fee is paid to cover the cost of preparing a valuation report.

How does a redraw facility work?

A redraw facility attached to your loan allows you to borrow back any additional repayments that you have already paid on your loan. This can be a beneficial feature because, by paying down the principal with additional repayments, you will be charged less interest. However you will still be able to access the extra money when needed.

Mortgage Balance

The amount you currently owe your mortgage lender. If you are not sure, enter your best estimate.

How much information is required to get a rating?

You don’t need to input any information to see the default ratings. But the more you tell us, the more relevant the ratings will become to you. We take your personal privacy seriously. If you are concerned about inputting your information, please read our privacy policy.

What is the flexibility score?

Today’s home loans often try to lure borrowers with a range of flexible features, including offset accounts, redraw facilities, repayment frequency options, repayment holidays, split loan options and portability. Real Time Ratings™ weights each of these features based on popularity and gives loans a ‘flexibility score’ based on how much they cater to borrowers’ needs over time. The aim is to give a higher score to loans which give borrowers more features and options.

Mortgage Calculator, Repayment Frequency

How often you wish to pay back your lender. 

What is a building in course of erection loan?

Also known as a construction home loan, a building in course of erection (BICOE) loan loan allows you to draw down funds as a building project advances in order to pay the builders. This option is available on selected variable rate loans.

Why should you trust Real Time Ratings?

Real Time Ratings™ was conceived by a team of data experts who have been analysing trends and behaviour in the home loan market for more than a decade. It was designed purely to meet the evolving needs of home loan customers who wish to merge low cost with flexible features quickly. We believe it fills a glaring gap in the market by frequently re-rating loan products based on the changes lenders make daily.

Real Time Ratings™ is a new idea and will change over time to match the frequently-evolving demands of the market. Some things won’t change though – it will always rate all relevent products in our database and will not be influenced by advertising.

If you have any feedback about Real Time Ratings™, please get in touch.

Do other comparison sites offer the same service?

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