Housing Faults Add Pressure to Mortgage Payments
Summary
5/02/2008
Archicentre News Release
5
February 2008
Housing Faults
Add Pressure to Mortgage Payments
Archicentre,
the building advisory service of the Royal Australian Institute of Architects
today said home buyers mortgage stress can be increased considerably by purchasing
faulty properties.
David Hallett
Archicentre's
pre-purchase home inspection figures show that at least one in three
homes sold have a range of problems that could add thousands of dollars
to the cost of a property, especially if the faults discovered involved
structural, plumbing, electrical, termites or illegal building.
General Manager of
Archicentre David Hallett said, "Buying a home is a complex exercise and
if people purchased a lemon with major faults it could lead to a major
personal and financial crisis".
Mr Hallett said that
often the decision not to carry out a property inspection can make a major
financial and social impact on buyers who in some cases run into serious
debt problems. Often the unbudgeted repairs or maintenance are added to
the mortgage compounding the affordability problem with a $30,000 repair
cost turning into $50,000 over the life of a normal loan.
"In the current
booming housing market Archicentre is receiving an increase in calls from concerned
home buyers after they have already signed the contract of sale."
Archicentre inspectors say
that the new DIY products that fill gaps and cracks are perfect weapons of
mass deception which can help dress up properties'.
"Typical warning signs for
'Lemons' include the use of gap filling products, wall panelling, strategically
placed furniture, pot plants or rugs and newly painted surfaces.
Archicentre carries out
over 20,000 pre-purchase inspections and design concepts for home buyers annually
on property valued at $7 billion."
Archicentre 2008 statistics
compiled from pre-purchase home inspection figures
Damp
Framing
Illegal
Building
Stump
Faults
Timber
Rot
Cracking
Electrical
Roofing
Water
Supply
NSW
43%
22%
27%
17%
33%
38%
28%
35%
8%
VIC
32%
20%
30%
31%
45%
41%
34%
53%
15%
QLD
31%
16%
22%
22%
33%
20%
21%
31%
8%
SA
46%
15%
34%
5%
35%
47%
31%
37%
8%
WA
31%
16%
21%
11%
20%
37%
19%
30%
12%
TAS
25%
9%
34%
13%
22%
44%
25%
40%
10%
www.archicentre.com.au
Commercial Inspections;
Building Status Reports; House Inspections; New Homes; Home Renovation; Home
Improvements; Design Concepts;
New Housing Reports; Pest Inspections; Pre-Purchase Inspections; Building Progress
Reports.
Media Enquiries:
David Hallett General Manager Archicentre (03) 9819 4577 Mobile: 0439 439 115
Ron Smith Corporate
Media Communications (03) 9818 5700 Mobile: 0417 329 201
