How bad is this building report???

Discussion in 'Repairs & Maintenance' started by waterbaby, 17th Feb, 2017.

Join Australia's most dynamic and respected property investment community
  1. waterbaby

    waterbaby Member

    Joined:
    17th Feb, 2017
    Posts:
    8
    Location:
    Gold Coast
    Would you still consider buying this property after reading this report? keeping in mind we intend to renovate the kitchen, bathrooms and laundry and redo floors. Any advice would be a great help.
     

    Attached Files:

  2. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,022
    Location:
    QLD
    I'm not a builder but with a water leak and high moisture readings you need an extensive termite inspection, probably an invasive one to really determine the extent of the termite damage.
    That would be my first thought, and speak to the building inspector personally, you will gain far more speaking to them than making an assessment based on a few sentences.
     
    waterbaby likes this.
  3. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    The termite activity is the main worry. You combine that with moisture and over time you have a nightmare.

    How old is the house?

    ( this house collapsed in Tennyson Point during a storm. I was told termites were the main cause Tennyson Point house collapse - ABC News (Australian Broadcasting Corporation) )
     
    chaos and waterbaby like this.
  4. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    Leaking showers. Termite damage. These are red flags. Are there active termites or has a treatment program been put in place?
     
    waterbaby likes this.
  5. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

    Joined:
    18th Jun, 2015
    Posts:
    23,319
    Location:
    Sydney
    Renovation of rooms may be ineffective if structural issues are evident. I would seek a second opinion from both a pest specialist and a builder. The report isnt aweful but its not great. Termites yes but it doesnt seem to describe structral failure either. If you invest in knowledge you may use that to negotiate a bargain or walk away from a problem
     
    waterbaby likes this.
  6. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,572
    Location:
    Sid en e - olympic city
    Water is a bugger, I would say it sounds worse than it is, water getting behind tiles, but price would have to be adjusted, it is going to be at least 2-3 grand to re waterproof 2 shower areas & you may find a few more grand of problems when there, I would be getting a quote to do the work and add some to it for unknowns.

    The termites, ask them what the go is, they won't just have been in a small section of skirting, they had to make there way there, pest guy should be able to tell you where they were and if gone.
     
    waterbaby likes this.
  7. waterbaby

    waterbaby Member

    Joined:
    17th Feb, 2017
    Posts:
    8
    Location:
    Gold Coast
    How old is the house?

    The house was built in 1980 so it's close to 40 years old which would mean it more than likely has asbestos as well.
     
  8. wombat777

    wombat777 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,565
    Location:
    On a Capital and Income Growth Safari
    I would only consider it if the location is good for capital growth. If close to amenities lock shops, transport, schools or views / beaches / etc might be worth the effort.

    Lots of hassle if the property has limited potential.

    If still considering, get some cost estimates from tradies and add 20% contingency to the amount.
     
    waterbaby likes this.
  9. Joynz

    Joynz Well-Known Member

    Joined:
    5th Apr, 2016
    Posts:
    5,751
    Location:
    Melbourne
    Asbestos sheeting is pretty common.

    Though it will increase the cost a bit if you need to remove asbestos cement sheet wall linings to fix the bathroom or do intrusive termite investigations.
     
    waterbaby likes this.
  10. Shady

    Shady Well-Known Member

    Joined:
    20th Aug, 2015
    Posts:
    523
    Location:
    Sydney
    I like this inspector, who did you use? Did you get a pest inspection as well?
    He's mentioned 'termite damage' but nothing about active termites or not. It's an unkown quantity as to how much termite damage is in the walls.
    It wouldn't necessarily be a deal breaker but I'd want to make sure the price reflects the work that needs to be done plus an amount for contingency. Would pay to get a building to quote on the work
     
    waterbaby likes this.
  11. waterbaby

    waterbaby Member

    Joined:
    17th Feb, 2017
    Posts:
    8
    Location:
    Gold Coast
    This report was done by a previous buyer. They put in an offer subject to pest and building. They got this report back and decided to pull out of the contract. So I guess they would have spoken to the person doing the report and possibly have more information then I do and if we go ahead and make an offer it will also be subject to our own pest and building report as well. It is in a great location with a good layout and north east facing aspect so it ticks all our boxes. I guess it is going to come down to if we are prepared to take the risk.
     
    Shady likes this.
  12. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,022
    Location:
    QLD
    You definitely need a termite inspection carried out.
     
    waterbaby likes this.