TICK ALL THE BOXES
REBECCA DINUZZO
A HOME is the most expensive thing most people will buy — and it can’t be easily returned if you have a change of heart or find out the goods are damaged.
So we asked the experts how to avoid costly mistakes.
When buying a new build, it would be nice to assume the tradie had covered all bases during construction. But Builders Collective national president Phil Dwyer said putting blind faith in the builder Could lead to costly headaches.
He said a building inspector was needed to go through the structure with a fine-tooth comb. He also recommended doing a background check, even by contacting previous clients.
“New builds should be completely compliant and up to scratch. But in today’s market, unfortunately, they’re not always,” Mr Dwyer said.
“It can come down to bad workmanship and unprofessional workmanship.”
Propertyology head of research Simon Pressley said he “wouldn’t touch” a new build unless he knew the builder and had overseen the work.
He said there were “thousands” of noncompliant high-rise apartments plagued with issues related to flammable cladding, cracking or cheap materials.
He said it was better to buy something older that had stood the test of time.
There are benefits to buying off the plan, according to Advantage Property Consulting director Frank Valentic.
These included the flexibility it provided to work with the builder to alter the floorplan and adapt the fixtures and fittings. But Mr Valentic said buyers were also essentially purchasing an idea without the benefit of walking through the finished product.
For this reason, he recommended having an architect or other professional review the plans to identify any design potential flaws.
“I’d be wary unless you’re experienced in building or development, because you’re buying something unseen,” Mr Valentic said.
“You don’t know what you’re going to get until you get it.”
Buying a home on a big block could open up a world of development potential. But Mr Valentic warned if a property is affected by an easement, you could kiss some — if not all — of those possibilities goodbye.
“Easements can decrease a property’s value because you can’t build over an easement without getting permission from the council or the water authorities, so that can really affect what you can do with it,” he said.
Details on easements can be found on a property’s land title.
Buying townhouses or apartments in shopping strips can be a red flag if an area is zoned for commercial or mixed use.
Mr Valentic said the high concentration of businesses may affect the property’s resale value, particularly if a panel beater or other noisy commercial retailer opened next door.
Buying into a vegetation protection zone could also restrict what trees and plants the buyer was allowed to remove, he said.
Lenders may demand buyers cough up a commercial-grade deposit.
Floods, fires, lighting strikes and other disasters can happen anywhere. On top of getting good insurance, Mr Valentic said steps should be taken to avoid nasty surprises conjured up by the elements.
Vendors statements should say if a property was in a bushfire area, he said.
And to find out if an area was flood prone, he suggested looking for the words “special building overlay”.
“They never call it a flood zone,” he said, adding buying in these areas could add thousands to renovation or build costs because councils often had certain specifications that needed to be met.
These included making sure a home was raised a certain height off the ground.