Back to Basics - Don't get a Huge Repair Bill with the Mortgage

With property clearance rates at an all time low, home buyers have been urged not to drop their guard on taking basic precautions when purchasing a home.

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.

Archicentre 2008 statistics compiled from pre-purchase home inspections in each State

	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%

David Hallett, General Manager of Archicentre said, the three basics of successful home buying are sustainable finance, knowledge of market prices and a complete understanding of the property that is being purchased.

Termites causing sub-floor bearer damage - found during an inspection of the sub-floor on a property. (Coptotermes species)

"At the current time with many mortgagee sales and vendors desperate to sell, buyers can be lulled into a false sense of security in relation to the condition of the property by just focusing on the price.

"The basic knowledge of a pre-purchase inspection report that exposes the condition of the property, 'warts and all', allows a buyer to make an informed decision on the biggest financial investment of their life."

Mr Hallett said that getting a huge repair bill with the mortgage because of a failure to have a pre-purchase property inspection can have a major impact on buyers' lives.

"Often the decision not to carry out an inspection can make a major financial and social impact on buyers who in some cases run into serious debt problems. Unbudgeted repairs or maintenance costs are often 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."

Archicentre inspectors say that the new DIY products that fill gaps and cracks are perfect weapons of mass deception which can help dress up 'Lemon Properties'.

"Typical warning signs for 'Lemons' include the use of gap filling products, new wall panelling covering up cracks or other faults, strategically placed furniture, pot plants or rugs over warped floorboards, uneven floors or termite damage and newly painted areas covering cracks or mould."

Mr Hallett said that Archicentre inspectors are seeing an increase in properties being 'tarted up' for sale to cover up faults as vendors cannot afford to repair them due to mortgage stress.

Archicentre carries out over 20,000 pre-purchase inspections and design reports for home buyers annually on property valued at $7 billion.

"If you are not able to climb under the house and inspect the sub-floor or into the roof cavity to inspect the roof structure it is sensible to get professional help and advice.

"A number of real estate agents and astute vendors are now having Archicentre carry out a building structure and termite inspection prior to the auction or private sale as part of their marketing campaigns," Mr Hallett said.

"One the major reasons for this is that Archicentre can certify the quality of the home and offer buyers a $20,000 structural and timber pest guarantee. In some cases this has increased the sale price as it gave the buyer certainty."

Archicentre has a Do It Yourself Checklist for Home Buyers available for download at http://www.archicentre.com.au/survival_kit/diy_checklist.pdf

www.archicentre.com.au
The building advisory service of the Royal Australian Institute of Architects
Commercial Inspections; Building Status Reports; House Inspections; Home Renovation; 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

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