SA Buying under market value but some worries with building report

I'm interested in buying a property. It's advertised for what I think is about 50k under market value (450k instead of 500k+).

I was eager to buy it until I got the building report. I am not really worried about the cosmetic issues. But I was worried about the structural integrity of the building because some of the bricks are cracked and they have added mortar to some of the lower bricks( though I think some time ago). Are these problems common or is there a significant chance that these are signs of a significant structural issue?

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Also is the damp in the internal stairs something I should worry about?

Here is link to the building inspection.

building report.pdf

 

You should be worried about that balcony (or maybe it’s a a porch) as it is clearly failed as mentioned in the report, and needs attention.

As far as I could see, the report said the brick work cracks were just cosmetic but should be monitored - this is standard.

Is the rumpus room legal? Or is it a converted garage?

I would investigate the damp mentioned in the rumpus room. The report says monitor so possibly not major (and could be related to being a garage conversion or earth against the wall or drainage problems or lots of other things..

 

Property appears aged and needing maintenance. Nothing substantial seems evident but a fair amount of cosmetic and maintenance matters. The worst thing was the rear step / porch etc and that could mean timber stairs and landing are needed. Not a massive job (carpenter) as would refixing ceilings and relining some walls eg that panelling etc. And a repaint and insulation etc. That settlement cracking is seemingly nothing major. Consider a full paint of the house exterior too.

Get a builder to walk through and give you a guide to cost and sus out the damp and the piers which seem to be impacting floors. The vendor will probably see that as a positive. Re-piering could be simple or costly.
The retaining wall looks pretty new and may be inadequate drainage behind it for it to bow like that.

How does it value ? Run down properties can suffer when valued. When the works are done it may enhance value and quality. These sorts of properties can be harder to sell so a opportunity to negotiate on price. I did note the "sale by owner" sale board under the house - They may be desperate to sell.

 

Many garages don't have a damp-proof membrane under the slab. If this is the case then it cannot be converted to a habitable room. There are work arounds, waterproof screed, or membrane and new concrete over the top if head height allows, but may require digging up the slab and reconcreteing with a membrane.

 

If there is any chance you might spend 50k to fix these issues even over a few years then you're not really ending up UMV. With my personal portfolio I aim (with most purchases, not all e.g. development sites) to be under market value AFTER the renovation or required works are completed, that way you have equity built in from day one.

If the property has development potential and you plan to knock it over in the future then that is another story.