It's easy to get swept away during the process of buying a house in Australia - particularly during a first home purchase. However, it's still vital to make sure you do your due diligence before committing to what may be the biggest investment you'll ever make. Too many buyers don't do their research before signing the paperwork and discover later on that the property has significant issues that would have been deal breakers if they had known about them earlier.
The easiest way to help make sure you don't find yourself in this situation is to conduct an extensive property inspection and survey. These will give you information about a house and help you avoid any potential problems.
In this article, we'll take a closer look at three major issues that may appear, and why it's important to know about them before committing to buying.
1. The land isn't as described.
Most buyers focus on visible issues when viewing a property, such as leaks or shoddy craftsmanship. While it's important to identify and understand these problems, there are also serious issues that have nothing to do with the structure itself. Among these is a disparity between the size or dimensions of land advertised and what you'll receive after putting down your deposit. Some buyers think that they're getting much more land than they are, which can cause real problems later on when building a fence, paving a driveway or planning an extension.
A property survey will provide you with an exact outline of the property, and where the boundaries are. Knowing this information before you buy will make a huge difference when it comes to avoiding disputes with your neighbours further down the line.
2. There are structural issues.
Some of the most serious potential problems with a property aren't visible from the outside. A classic example of this is termite damage, resulting in a need for extensive structural repairs, which can run into the tens of thousands to adequately fix. Similarly, leaks that may not be visible when you visit the house on a sunny day can wreak havoc once you've moved in and the winter weather rolls around.
An experienced building inspector will know precisely what to look for when examining a property. Their expertise will allow them to turn up any information that may cause you to think twice before dedicating your hard-earned cash (and your home loan) to an investment that may not be worth the risk.
3. There are limitations.
Finally, a property inspection and survey will provide you with a much better understanding of what you can or can't do on a property. Without this knowledge, you may plan a renovation or repair and find that due to issues with the property or the land, you simply aren't able to. As an example, a building survey will reveal whether or not there are any significant underground cables or drains beneath the house. If there are, they could severely limit your ability to complete certain construction projects.
A property survey will also make sure that you understand exactly how the property is zoned. The types of work that can be done on a property are very different in a residential zone than a light industrial one.
Terms, conditions, fees, charges and normal lending criteria apply. This information has been prepared without taking account of your objectives, financial situation or need. Before acquiring this product, you should consider its appropriateness for you, having regard to your objectives, financial situation and needs.
This information has been provided without taking into account any of your objectives, financial situation or needs. You should consider whether it is suitable for your circumstances before acquiring this product.
All loans are provided by Beyond Bank Australia Ltd ABN 15 087 651 143 AFSL/Australian Credit Licence 237 856. © 2020.