Reviewing Property Inspection Reports for Potential Issues
What to look out for in your building inspection report
Buying a property in New Zealand is an exciting venture, but it also comes with a fair share of due diligence. One of the most critical aspects of this process is reviewing inspection reports to identify potential issues that could affect your investment. In this comprehensive guide, we'll take you through the key problems to look out for, such as leaky buildings, asbestos, methamphetamine contamination, flooding, dampness and mould.
Pests such as termites (also known as white ants), borer beetles, rats and mice can cause extensive damage if left unchecked. Your inspector should be on the lookout for signs of infestations including droppings, damaged woodwork or nesting materials within the property. Once you've unearthed potential issues from your property inspection report, it's crucial to follow a strategic and thoughtful course of action. Here are the key steps you should take: Before making any decisions, it is important to consult with professionals who specialise in the area of concern identified. For instance, if an issue with the building's structure is flagged, a structural engineer should be your go-to expert. Similarly, for electrical issues, seek advice from a certified electrician. These professionals can provide further evaluations and give you a more detailed understanding of the problem at hand. After getting a clear picture of what needs fixing, the next step is to get quotes for the repair or remediation work required. This can help you understand the additional financial burden that may come with purchasing the property. Armed with a comprehensive understanding of the property's condition and potential repair costs, you're now in a stronger position to negotiate. You can either use your findings to negotiate a lower price or request that certain repairs be completed prior to purchase. It's critical to recognise when certain issues might be insurmountable obstacles rather than challenges that can be managed or rectified. Decide upfront what constitutes a deal-breaker for you and be prepared to walk away if such issues are identified. Electrical wiring and plumbing systems are like the nervous and circulatory systems of a house; they must function correctly to ensure safety and convenience. The age and condition of these systems should be clearly outlined in the inspection report because outdated or poorly maintained systems can be hazardous and expensive to upgrade. Proper insulation is crucial for comfort and energy efficiency in New Zealand's variable climate. The inspection report should detail the type and condition of insulation present in walls, ceilings and under floors. Insufficient insulation can lead to higher energy bills and reduced comfort levels within the home. Before diving into the potential issues, it's essential to understand what an inspection report entails. An inspection report is a document prepared by a qualified building inspector who evaluates the condition of a property. It should provide a thorough assessment of the building's structure, materials used and any areas that require repair or may pose future problems. New Zealand has had its share of leaky buildings - structures that allow water ingress due to poor design or construction. This issue can lead to structural damage and toxic mould. When reviewing an inspection report, look for signs of water damage such as staining, bubbling paint or timber rot. It's also wise to check if there have been any recladding efforts which can indicate past problems with leaks. You can get moisture readings done as a part of the building report process. For plaster houses, also ask/check if they have a cavity system in place. The ever-evolving geographical landscape of New Zealand, shaped by its seismic activity and diverse terrain, necessitates a careful consideration of ground stability when purchasing property. This aspect is especially important due to its potential to directly influence the long-term safety, durability and value of your property. The inspection report should offer detailed insights into the land's history and current condition. Specifically, it should address whether the land has any history of: Both subsidence and slippage could significantly undermine the stability of your foundation over time, leading to structural problems that may require costly repairs. Understanding the ground stability of your prospective property can help you make an informed decision about your investment. Here's why: A material once celebrated for its durability and resistance to heat, asbestos was a popular choice in New Zealand's construction industry until the late 1980s. However, it was later discovered that asbestos can pose significant health risks when its microscopic fibres become airborne and are inhaled. If you're considering purchasing an older property, it is crucial to ensure that your inspection report includes a comprehensive asbestos check. This check is not only about ticking compliance boxes, but also safeguarding your well-being and that of those who will share the space with you. When asbestos fibres are inhaled, they can lodge into the lungs and cause serious diseases over time. These include: If asbestos is found on the property, it's essential to consider both safety measures and financial implications. Here are key points to ponder: In recent years, methamphetamine (meth) contamination has been increasingly recognised as a serious issue affecting properties across New Zealand. The residual effects of meth use or production can seep into the very fabric of homes, permeating walls, floors and surfaces. This poses a significant health hazard that can have long-term implications for those living in the affected property. This Toxicology condition can be added in the Sale and Purchase Agreement if you believe there has potentially been an issue with usage at this property. Identifying meth contamination isn't always straightforward. However, your property inspection report may provide some clues. It could mention the presence of chemical odours, which are often described as sweet, acidic or solvent-like. Similarly, unexpected stains on walls, floors or ceilings could be a result of chemical spills or residue from meth use or production. Here are some common signs of potential meth contamination: The health risks associated with meth contamination are substantial. Exposure to meth residues can lead to a range of symptoms such as headaches, dizziness, nausea, skin irritation and respiratory problems. In more severe cases it can affect the nervous system and even lead to behavioural changes. If you suspect your potential property might be contaminated with meth, it's crucial to engage professionals to conduct thorough testing. Should the test results confirm the presence of meth contamination, your next step will be decontamination. This is a complex process that should only be undertaken by certified professionals following strict safety protocols. Flood risks are a potential concern for any property owner or prospective buyer in New Zealand. Given our nation's diverse topography, which includes coastal areas and river basins, along with occasional extreme weather events, both natural and man-made flooding can occur. An inspection report should provide a comprehensive assessment of the risk of flooding. This assessment should be based on the property's location and its history of flooding, if any. More specifically, properties located in low-lying areas or near bodies of water may be more susceptible to flooding. When reviewing the inspection report, here are a few key points to consider: While reviewing an inspection report, be vigilant for any mentions of water marks at the base of walls or doors. These signs could signify past flood damage, hinting at potential structural issues and mould growth. Here are some telltale signs: Dampness and mould are common problems in many New Zealand homes due to its maritime climate which favours humidity. These issues not only cause discomfort but can also lead to health problems and degrade building materials over time. An effective inspection will highlight any areas with poor ventilation or visible signs of mould growth. The structural integrity of a property serves as its backbone, ensuring safety and longevity. This crucial aspect of a building cannot be overlooked during inspections. Any potential structural issues could lead to significant safety concerns and hefty repair costs down the line. When you receive your inspection report, it's critical to look for key indicators of structural problems. These can include: Always remember to take these potential issues seriously. While some may seem minor at first glance, they could signal deeper problems that might be costly to rectify. As you journey into the realm of property ownership, it's essential to be mindful that your investment doesn't end at the point of purchase. An often overlooked yet integral part of successful property management is the commitment to regular maintenance. This involves setting aside funds specifically for this purpose, especially if you're considering a property with identifiable but manageable issues. Prevention is Better than Cure: Regular upkeep can nip minor issues in the bud before they become major, costly problems. For example, a small leak might seem insignificant initially but left unchecked, it could lead to substantial water damage. Preserve Your Property’s Value: Maintaining your property not only ensures its functionality but also contributes to its aesthetic appeal and overall value. A well-maintained property is more attractive to potential renters or buyers and can command a higher price in the market. Safety and Compliance: Regular maintenance can help ensure your property adheres to safety standards and regulations, protecting you from potential legal liabilities. While budgeting for your property purchase, it's wise to include an allocation for ongoing maintenance costs. This will serve as a financial cushion when unexpected repairs or upgrades are needed. Forecast Maintenance Costs: It would be useful to have an estimate of yearly maintenance costs which typically range from 1% - 3% of the property’s initial price. Factor in Age and Condition: If you’re leaning towards an older property or one with known issues, consider setting aside a larger portion for maintenance. Plan for Major Repairs: Roof replacements, plumbing overhauls or significant landscaping work are examples of big-ticket items that you may need to plan for in the long run.
Seek Expert Advice
Estimate Repair Costs
Negotiate
Consider Walk-Away Points
What Should Your Inspection Report Address?
Why is Ground Stability Important?
The Health Implications of Asbestos
Dealing with Asbestos: Safety and Financial Considerations
Identifying Meth Contamination
Potential Health Hazards
Addressing Meth Contamination
What to Look For in an Inspection Report
Identifying Signs of Past Flood Damage
What to Look for in Inspection Reports
Why is Regular Maintenance Vital?
Setting Aside Funds for Maintenance
