Arm yourself against property heartbreak

Given how huge a financial investment property buying can be, it’s always surprising to hear stories of people turning up to an auction, inspecting it for five minutes and then buying it.

For very experienced renovators and builders, that might be a gamble they’re prepared to take. But for everyone else, this impulse move involves big risks; the house may have a significant problem or may have negative features that you could miss at a quick glance.

Fraught with problems?

Termites? Asbestos? Rising damp? Illegal renovations? None of these are insurmountable problems, but you would sure want to know about them in advance so you can factor them in to the price you pay for a property.

Getting a building and pest inspection from a licensed inspector will help you identify potential problems and is a must in most cases.

New homes, too

Many buyers may assume that new homes will have no problems. But then they haven’t heard of slab heave, a problem that has landed some builders in Melbourne’s west in court and resulted in them receiving hefty fines for building defective house slabs built on inadequately compacted soil.

Fire and flood danger

It pays to learn whether you are buying into an area at significant risk of flood or fire and whether the property is built to withstand any future issues. Don’t assume a contract will alert you to potential problems – not all states and territories require this. Some take the view of “buyer beware”, so you need to do your own research.

Orientation

In Australia, it’s best to have living spaces to the north to catch the winter sun. Eaves or overhangs should also be on the north face to shade the summer sun, which is higher in the sky. Check which way a property faces when you inspect it – or look closely at its floor plan.

Some houses don’t have eaves or overhangs, so it’s worth running a critical eye over the exterior.

Neighbourhood and future developments

Spend some time in the neighbourhood to understand what it’s like at various times of the day and week. Don’t look just in the street but further afield. And talk to council and locals about any future developments that could impact your potential new home.

By doing your due diligence now, you’ll save yourself a lot of anguish down the home-ownership track.