Tips for First Time Property investors: Molly's Real Estate Blog

Tips for First Time Property investors: Molly's Real Estate Blog

Investment Properties | 3 Considerations When Getting An Investment Property Building Inspection Report

by Vanesa Diaz

A pre-purchase building inspection is an examination of the structural integrity of a real estate property. This is undertaken to identify any major visible defects that exist in the property. A thorough building inspection report in a metropolitan city in Australia can cost between $800 and $1000, while a regional average sized property can cost between $400 and $500. This probably sounds expensive, but it is well worth the price if you can avoid paying thousands of dollars in structural repairs. If you're looking to buy investment properties, consider these factors for your building inspection report.

Know the Contents of the Building Inspection Report

A pre-purchase building inspection will be undertaken for all visibly apparent areas of investment properties, including the house, shed and garage. It will also cover fences, steps, decks, driveways, paths, illegal additions, and non-structural retaining walls. Apart from these, the building inspection report will cover aspects related to visible storm water flow and water drainage. For the house and other buildings around the house, the report will examine the exterior, interior, roof, under the floor and roof exterior. The report will not include concealed elements like damp-proofing, electrical wiring, plumbing and appliances. It will also not cover swimming pools and irrigation systems outdoors.

Understand Additional Details That May Be Necessary

If you're worried about certain structural elements of the investment property you're interested in, you can ask the building inspector to include certain details like visible asbestos signs, operable smoke alarms and operable safety switches. Aspects like asbestos presence may be necessary if you're looking at older investment properties that were built before the 1980s. If your building inspector recommends additional inspections, you may need to engage a pest inspector, a structural engineer, a geotechnical engineer and a surveyor to undertake more specific assessments of the home.

Choose The Right Building Inspector For a Thorough Job

You must always choose a licensed building inspector with professional indemnity insurance. Experienced builders, structural engineers, architects or surveyors will be able to provide a comprehensive building report of the property. These professionals ideally know exactly where to look and what to look for. They can see right through visible structural faults that can be missed by an inexperienced person. Keep in mind that the building report must comply with Australian Standard (AS 4349.1). Examine your contract carefully to identify all the information the building inspector will offer you before signing on the dotted line.

You'll naturally want to find the least worrisome investment properties, so use these considerations for planning a building inspection report.


About Me

Tips for First Time Property investors: Molly's Real Estate Blog

Hi, my name is Molly. I have been a property owner since my grandma died when I was eighteen, and I inherited a rental property. Over the years, I have managed that property very successfully, and about ten years ago, I started adding to my collection. While I would definitely say that the investment property game is not a get-rich-quick scheme, it can make lucrative money. To help others who are interested in getting into the game, I have decided to start a blog. Here, I am going to share insider tips, experiences and ideas. Get comfortable and feel free to explore!