In Australia, more than half of homeowners (58%) spend less than an hour inspecting their home before making the purchase. It is therefore not surprising to learn that more than a quarter of Australian’s find issues upon moving in. The excitement that purchasing a home brings can often lead to many becoming focused on how they can get the house, rather than stepping back and developing a full understanding of the future costs and requirements of the home.
To take the emotion out of buying here’s a couple things you can do….
- Make sure you carefully check the Vendor Statement of the contract, which provides all pertinent information about the property. While a Vendor Statement may show you where potential easements are located and list any possible encumbrances, it will not give you a personal history of the house. Would it bother you if you found out after purchase that the home you are now living in was once the scene of a violent crime?
- Ask the real estate agent prior to purchase about the history of the property. The agent is obligated to disclose any information they may have if you ask. But only if you ask.
- Pre-purchase building inspections are a critical investment in any home, commercial building or investment property purchase. Representing just a tiny fraction of the cost of your purchase or a fully tax-deductible expense in some circumstances, a pre-purchase inspection can save you a lot of money if nasty surprises are discovered.
- If the house was built before 1985 it is highly likely that Asbestos is present in the home. For peace of mind make sure you get Jim’s Asbestos Removal to have a look at the house.