#Underpinning - would you buy.

Just wondering if any one has taken a chance on a property which has had structural problems which required a section of the building to be underpinned by the current owner. The work to the property would be signed off by the contractor . Does this work done carry over to the new owner for warranty. Also if this problem is fixed is there a chance of further issues elsewhere in the property.

 

I would pass... Sounds like too much Unknown

 

For the right price fo sho

 

A lot of houses on stumps have underpinning done especially in Melbourne suburbs like Brunswick. It costs anything btw 5-15k. I wouldn't avoid it

 

Definitely - fixing problems is a good way to add value.

 

back in the day many places had wooden stumps and nowadays once it is redone with concrete stumps it shouldn't be an issue. i remember seeing this place in maidstone, vic which had underpinning work done. it didn't affect the sale price at all.

 

Thanks Guys. The house I am looking at is in Tasmania in kings Meadows and in this particular street many homes have experienced the same issues as they have been built in the 50 -60s and as it has been so dry over there these issues are becoming more common. The owners are getting the area repaired and it will be signed off by a structural engeineer I believe. just wondering if there would be a problem with my lender as well.

 

The one i have seen for sale come with a permit and certifcate of compliance. should be no issue.

 

I agree with the others with respect to a fixable problem turning into a nice profit or great PPOR..

But just be aware underpinning does not always work. I've seen it fail for a few reasons.

Don't be fooled with words such as "signed off by contractor", "signed off Engineer". They're meaningless really..

You need to see that the Builder includes a structural warranty included in the contract. Although they will most likely have nasty disclaimers.

I'm not sure about Tasmania, but in QLD, the QBCC who provides 'home owners warranty insurance' excludes underpinning works from their insurance based on the rate of failure.

I think you need to be aware that underpinning should reinstate the damage, provided it has been adequately designed and built, but if it fails again, you will be left high and dry..

 

@vbplease would the 'home owners warranty insurance' be any different to the insurance contractors take out for insurable works.

I ask because I came across this on the QBCC website and it may be referring to a different type of insurance? Also I am responding to a 3.5year old post.. things may have changed since then

Underpinning

 

Always go in with your eyes open and pay for very good advice. Plenty of opportunity comes from having cash available that others don’t to get advice and make stuff happen. So many don’t have the money so walk away.

 

When you say insurance contractors, you're referring to works covered by an insurance claim? If I think I know what you're talking about, the 'insurable works' is a guarantee offered by an insurance company that any work undertaken by their panel builder is warranted. This warranty is completely different to works insured by the QBCC as 'Home Owners Warranty'.

My last post (nearly 4 years ago) seems like a distant memory now.. I vaguely remember underpinning wasn't included under QBCC then.. That's great that it is included now.

 

Sorry I could have worded my previous message better. I meant the insurance that a contractor would have to pay to QBCC when they are doing work which is classified by the QBCC as insurable works.

I think we're talking about the same insurance which now covers underpinning.

 

Partial underpinning is a partial fix. I have been in the RE industry for 41 years and long enough to know that its something that will cause the rest of the building to unsettle in 7-15 years. If you are a very long term holder I would factor the cost of a complete underpinning into account. If you are a short term holder 3-5 years I see no problems.
Think of a building built on two sets of unequal foundations. IE sand and clay, rock and sand, rock and clay. it simply does not work long term. The only reason you would do partial underpinning is if the other part is already underpinned to rock.

 

I agree. It is a technical problem that can be fixed with enough - just factor in about ~$20K to be on the conservative side (depending on some factors - size, slope, type of soil etc). Getting actual quotes might be the surest way to know.

 

Thought would add to an existing thread rather than start another.
Asking the experts on here:

Would you be scared off by the following scenario:
Approx $17k of underpinning works done approx 3.5 years ago to a property I’m considering purchase. Done via resin injection underneath. No obvious internal cracks present now and no obvious recent painting to cover.
Work done is documented & comes with a 50 year guarantee (for what that’s worth). Company has been a round for 25 years but still no guarantee paper is worth much.
Would appear to be covered by QBC warranty, although have heard on some podcasts they can be a nightmare to deal with.
2 story highset on a flat block on slab in Qld, Not Ipswich LGA.

Property looks ok otherwise but thinking of discount offer by $10k or so to cover risk as it does meet other criteria than I’m looking for.
Price is pretty good already.

Just looking for those with more experience to provide thoughts / experience on the injection process & any recommendations.
Much appreciated!

 

Serious underpinning work can be a lot more expensive than some of the figures quoted here. I have seen a quote for 400k on an older federation home near where I live.

 

It's a big no from me..

 

Ditto
Perhaps an opportunity to buy at discounted price???