Property Investment Tips: Why should you do a pre-purchase building inspection?

By the resi financial blog team, 13 April 2015

Property Investment Tips: Why should you do a pre-purchase building inspection?

Like most things in life, buying an investment property comes with some risks. To minimise the possibility of things going pear-shaped, it's essential to look before you leap - and this is no more important than when it comes to the building itself. While you can get tied up in the legal and negotiation side of things, it's essential that you save yourself from purchasing a property with major structural defects.

This is where a pre-purchase inspection enters the frame. You might want to save a few extra dollars, but the following points will highlight why these reports can be an indispensable part of the process. 

Keeping your budget on track

Properties that need a bit of love and care can be an attractive prospect. Not only can they come at a discounted price, but you can put your own creative spin on the home in order to make a profit at resale. However, you can run the risk of buying a piece of real estate that needs far more attention and capital than you bargained for. 

No matter if you're a seasoned investor or an enthusiastic newcomer, avoid headaches and enlist the help of a profession inspector. With their trained eye, they can identify problem areas, hazardous issues and give you a more accurate picture of the costs involved to fix them. This can give you greater peace of mind heading into a sales negotiation, as well as clarifying the finance needed before approaching a lender. 

Safety is paramount 

Structural complications don't just pose a challenge to your budget - they can endanger you and others if not dealt with correctly. These problems could even require extensive renovation and construction to remedy, if they can be fixed at all. Be aware that all residential buildings need to meet strict criteria and could incur significant fines if the property is not up to scratch. 

To avoid the risk of injury and  legal ramifications, a pre-purchase inspection report can highlight what aspects of the property are non-compliant and require immediate work. 

Going into the sales process with all the facts is crucial. This is equally the case when obtaining finance, so to find out what investment loans are available to you, speak with a loan specialist at resi

Categories: Property Investment