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#Underpinning - would you buy.

Discussion in 'General Property Chat' started by erica 1, 17th May, 2016.

  1. erica 1

    erica 1 Member

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    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.
     
  2. EN710

    EN710 Well-Known Member

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    I would pass... Sounds like too much Unknown
     
  3. Coastal

    Coastal Well-Known Member

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    For the right price fo sho
     
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  4. melbournian

    melbournian Well-Known Member

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    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
     
  5. wylie

    wylie Moderator Staff Member

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    If you get it cheap enough and it can be fixed then you could be on a winner. Our son bought a house that needed underpinning and/or drainage to solve a "heaving" problem. Being able to fix it made him good profit.
     
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  6. Tonibell

    Tonibell Well-Known Member

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

    melbournian Well-Known Member

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    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.
     
  8. erica 1

    erica 1 Member

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    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.
     
  9. melbournian

    melbournian Well-Known Member

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

    vbplease Well-Known Member

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    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..