Issues identified with unit during Building Inspection

I have organised building inspection report for an investment property which I am looking to purchase. The building inspector has identified following issues and deemed unit below average and with high major faults. I have asked vendor to fix these issues or provide some allowance so I could organise repairs post settlement however not sure whether they would agree to any of requests.

I want to seek advice from other property investors. If you encounter these issues, will you proceed with purchase or step back? Any guidance you could provide will be greatly appreciated!

1. The moisture was detected in the adjacent walls of shower recess in Bathroom 1. This issue will result in wall deterioration, mould and paint flaking. The recommended fix is to hire plumber, identify and seal leakage and also reinstall waterproofing (if required. The estimated repair cost is $3k to $5k.
2. Wall of one bedroom was damaged due to water leak in unit above and it is being repaired by Strata. The building inspection report still shows very high level of rising damp. Is it common for wall to show dampness after 1 month of leakage seal?
3. Silicone sealant has been applied to the interface of the floor and walls in the shower recess in Bathroom 2 which in an apparent attempt to prevent water penetration to surrounding areas. This is only temporary solution and the tile will start to fall out once water penetrates into wall.The recommended fix is to remove tiles, re-install water proofing and then install tiles again. The estimated cost is $3k to $5k.
4. Skirting board is not affixed to walls. The estimated cost is $200 to $300.
5. Kitchen wall and floor tiles have hairline cracks. It is recommended to refer to professional tiler to get 2nd option.

 

Picture for issue 1




Picture for issue 2

 

Is there a reason you have to buy this property?

Having personally had issues with leaks, water damage, rising damp and mould, I would avoid the property altogether unless they are going to give you a HUGE discount which will cover costs of repair and all the pain you're going to have to go through. These sorts of issues are very hard to find and fix...

 

There is no specific reason to purchase this property. Only concern is I will lose $2k if I don't proceed but I guess it's better than getting stress down the line. Having said, I will like to seek other people advice whether they consider these issues as material?

 

Avoid. At least if you do, it's only 2k. Learn from it and move on with a contained loss.

 

Would I be able to claim this loss in tax return?

 

Leaking showers are VERY common.

• Yes, it takes months to dry out and we are in a wet, cold winter period.

• OK

• OK

• Hairline cracks are VERY common. This is just nit picking.

I'd negotiate to get the vendor to pay to fix or reduce the purchase price by an appropriate amount to cover + contingencies or find another property.

 

I'm not sure, check with your tax advisor. It's unlikely though.

 

No.

 

Thanks for your feedback. I have asked them for an allowance and waiting for their response.