3 Things to Look out for When Buying an Investment Property

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By Lateral Partners

29-06-2022

There are some key areas of concern to look out for when considering an investment property. Of course, we suggest you get a professional (builder, roofer, etc.) to inspect the premises before buying, but we have also come up with a few things that you can keep an eye out for yourself.

Firstly, always ask the agent or seller if there are any disclosures. This is crucial as the agents have an obligation under the REA to disclose any things of concern at the premises. This can be anything from a death in the home, any leaks throughout the premises, or even minor damages like a hole in a wall from moving out.

The age of a property is a great indicator of what to expect in a property. The older the property, the more issues you can expect, within reason. Some older houses are built better than new houses built today, but at the end of the day a simple rule of thumb is that the older the place, the more you can expect to pay on renovating or repair & maintenance. In any case, here are some physical concerns/ damages to look out for.

Signs of a leak on the ceilings

This is a good indicator that there is some sort of leak coming from the roof cavity. It could cost you a big sum of money if the roof is starting to or has already failed.

Under the house

Crawling under the house might not be your cup of tea, but there are a couple of key things you want to check here. Depending on the age of the house you are looking at, the piping may be old and tired and need replacing. Dux Qest piping for example was introduced in the 1970s & 1980s and is notorious for spontaneously failing.

Flooring

Checking the flooring under the house is also helpful in identifying any leaks which may have occurred in the premises throughout the life of the house. This is quite easy to identify, as you will notice a water damage mark on the flooring and if the leaks are still occurring, you can even stick your finger into it and feel to see if it is wet and has gone soggy. If this is the case, you need to be aware as these floorboards may need to be replaced in the near future. Common areas for flooring leaks are around the kitchen or bathroom areas, and also the hot water cylinder area, which could indicate a failing cylinder that needs to be replaced.

If you want to learn more about the Property Investment process, download our free Property Investment Guide here.

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