Do Property Investors Need a Pre-Purchase Inspection?

For property investors, the stakes are high. One mis-step can result in significant financial losses, making it crucial for you to conduct due diligence before making any real estate purchases. But do property investors need a pre-purchase inspection?

An important tool every savvy investor must have in their toolkit is a pre-purchase building inspection, which can uncover issues that may not be apparent during your own walkthrough. Yet, despite the benefits, those new to property investing may overlook this critical step in their eagerness to secure a deal or may not even be aware of this critical step.

If you are new to property investing, part of making smart property choices means understanding the condition of a property.

The way to obtain information about whether a property has damage that may impact your decision to buy, is by booking a pre-purchase building inspection or giving us a call on 0412 584 345. Property investors are no different to other property buyers, so it makes good financial sense to book a pre-sale building inspection.

What does a Property Inspection Cover?

A pre purchase home inspection is conducted according to Australian Standard 4349.1—2007 Inspection of buildings Part 1: Pre-purchase inspections— Residential buildings. There are particular areas our building inspector looks over and this is then detailed in the property condition report you receive:

(a) The interior of the building.
(b) The roof space.
(c) The exterior of the building.
(d) The sub-floor space.
(e) The roof exterior.
(f) The property within 30 m of the building subject to inspection.

There are also areas that are precluded from a building inspection according to the same Australian Standards:

The inspector needn’t inspect or provide a report on the following:
(a) Footings below ground.
(b) Concealed damp-proof course.
(c) Electrical installations, operation of smoke detectors, light switches and
fittings, TV, sound and communications and security systems.
(d) Concealed plumbing.
(e) Adequacy of roof drainage as installed.
(f) Gas fittings and fixtures.
(g) Airconditioning.
(h) Automatic garage door mechanisms.
(i) Swimming pools and associated filtration and similar equipment.
(j) The operation of fireplaces and solid fuel heaters, including chimneys and flues.
(k) Alarm systems.
(l) Intercom systems.
(m) Soft floor coverings.
(n) Electrical appliances including dishwashers, incinerators, ovens, ducted
vacuum systems.
(o) Paint coatings, except external protective coatings.
(p) Health hazards (e.g., allergies, soil toxicity, lead content, radon, presence of
asbestos or urea formaldehyde).
(q) Timber and metal framing sizes and adequacy.
(r) Concealed tie-downs and bracing.
(s) Timber pest activity.
(t) Other mechanical or electrical equipment (such as gates, inclinators).
(u) Soil conditions.
(v) Control joints.
(w) Sustainable development provisions.
(x) Concealed framing-timbers or any areas concealed by wall linings/sidings.
(y) Landscaping.
(z) Rubbish.
(aa) Floor cover.
(bb) Furniture and accessories.
(cc) Stored items.
(dd) Insulation.
(ee) Environmental matters (e.g. water tanks, BCA Environmental Provisions).
(ff) Energy efficiency.
(gg) Lighting efficiency.

Who Conducts Pre-purchase Property Inspections?

You don’t need to have inspector certification in Victoria to conduct inspections so it’s important to understand what to look for in a building inspector, so you end up with a comprehensive condition report.

Your Home Building Assist inspector for Melbourne and Geelong areas has the following qualifications and expertise:

He is a registered builder
He has over 30 years of experience in the construction industry and knows what to look for during inspections
He has obtained the QMB Inspector certification
He is a Home Industry Associate member (HIA)
He understands the era and age of houses for comparative purposes
He is independent
He is non-biased.

We are proud of the level of expertise we provide for your building inspections and are here to help you with any questions you may have to fully understand the service you will receive.

What if a Pre-purchase Building Inspection Reveals Problems?

If the pre-sale home inspection reveals major problems, it doesn’t mean you should or shouldn’t buy the house; only that you now know in advance the condition of the property. The value of having this information cannot be underestimated. You can use it to understand possible future repairs and whether it is major or minor. This will allow you to negotiate your final purchase price in light of the information contained in your pre-purchase property report. Alternatively you may ask for certain repairs or to walk away from the deal.