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.