Why should you arrange a building maintenance inspection today?
Purchasing real estate is many people’s dream. 75% of us feel that property ownership is embedded in our culture and, just like in any other investment, real estate has its risks. The financial burden is substantial whether you’re a seller or buyer, which is why it’s essential to invest in a maintenance inspection, which can be done any time, no matter the stage of real estate investment.
What is a maintenance inspection for?
A maintenance inspection is carried out by a qualified inspection company and it searches for, and identifies, potential latent and patent defects in your property.
Patent defects are problems that can be easily identified even with an untrained eye. Examples include broken windows or plasterboard.
Latent defects are those hidden from plain sight. Only professionals in the industry, like a certified building inspector and licensed builder, can detect these. Examples include roof leaks, shower flashings, or subsidence.
Building inspections are beneficial at any stage of real estate investment
Properties are huge financial investments. Therefore, investors should also put some capital aside for future property upkeep, in addition to the capital required for purchase.
1. Pre-purchase building inspections
Being able to purchase a property is a dream come true that can potentially be ruined by damage, pests, and mould and these often cannot be seen by the untrained eye, which is why an inspection by a reliable building inspection company in Newcastle, such as Exceptional Building Inspections, is vital.
Existing damage and pests can have an effect on a property’s value. These need to be reviewed before finalising the purchase. The buyer would be better placed to negotiate pricing based on the inspection report findings.
Expected maintenance costs
A good rule of thumb is to allow maintenance costs to come to 1% of the property’s value each year. So, for example, an $800,000 property requires the owner to save at least $8,000 for maintenance costs to fix wear-and-tear or any unforeseen problems.
Alternatively, investors could allot at least $10 for each square metre. This means that a property with a size of 500 square metres needs to save $5,000 annually.
2. New-build inspections
Is inspection still required for a newly constructed home? The answer is a big, resounding YES! Only building experts can detect issues, and these can even occur in brand-new properties, because building certifiers and council inspectors only check code compliance and not necessarily the materials or workmanship. Here are the usual issues detected in a new home:
- Structural defects such as poor framing, improper grading, and foundation cracks.
- Grading and drainage issues – this can lead to structural and water damage later on.
- Window leaks.
- Electrical issues like open grounds, inadequately wired outlets, and missing switch plates.
- Plumbing problems like incorrect piping, leaks, and reversed cold/hot water in faucets.
3. Building maintenance inspections
Maintenance inspections are useful, especially when the owner is still residing in or occupying the property. Here are some benefits of hiring Exceptional Building Inspections to carry out maintenance inspections during this stage:
Maintenance increases safety
Just because the property has already passed inspection pre-purchase doesn’t mean its quality stays the same over time. On the contrary, it will probably slowly deteriorate and can pose safety risks. Maintenance also helps ensure adherence to changes or updates in safety standards and regulations.
Maintenance helps the property function at its best
Adequate maintenance keeps the property working and looking at its best. It’s as if it’s still brand new. Of course, remodelling is not the only solution to keep the property looking new. Sometimes, doing minor refurbishing and repainting does the trick.
Maintenance expenses are tax-deductible
The Australian Taxation Office allows replacement, maintenance, and repair expenses of rental property owners to be tax-deductible.
Maintenance prevents damages that can require extensive repairs
It’s always preferable to prevent damages from happening rather than fixing them. Fortunately, maintenance reduces the risk of damage that might need massive repairs. This helps the owner to save more, including possible litigation costs for personal injury.
4. Pre-sale building inspections
Most people think that inspections only protect buyers from being trapped into buying a “home from hell”, but those who want to let go of their property will benefit as well.
A pre-sale building inspection alerts the seller to possible structural or electrical problems, before putting the property on sale and gives sufficient information to determine the right selling price for the property (the owner might consider doing renovations first, which may increase the property’s value).
All properties must comply with local regulations
Building inspections make sure that a particular structure abides by the building by-laws, especially where DIY renovations are concerned. It’s critical to know immediately if there are hazards present and the penalties for non-compliance can be huge – the owner may receive a demolition notice from the council if his property doesn’t follow building codes.
When is a building maintenance inspection is not carried out?
There are only rare instances when maintenance inspection is not needed:
- When the property is being considered for demolition and site clearing.
- When substantial renovations are planned for the property (the builder can check the projected renovation costs and identify structural issues in his report).
- To make the bid competitive if there are several buyers. This is a risky strategy, so consider this only in worst-case scenarios.
It’s Always a Good Time for Building Maintenance Inspection
Wouldn’t it be nice to sit at your home or office without worrying about possible health hazards or accidents connected to your property or properties? As we have explored, a building inspection is crucial for your property even after its initial construction or purchase.
Have your Newcastle home or building checked by our team at Exceptional Building Inspections. We perform comprehensive building and pre-purchase property inspections efficiently and cost-effectively. Contact us at 4950 4197 or 0412 188 199 for enquiries or email firstname.lastname@example.org to book your building inspection, today.