If you purchase residential property in Victoria, or receive it as a gift, you may have to face an extra charge known as stamp duty (or land transfer duty). So, what are the rates, how is it calculated and do you qualify for any concessions or exemptions?
Buyer
What are the benefits of a property inspection?
A pre-purchase property inspection can help you make a confident decision when buying a house and even help you save money in the long run.
Buying property – whether it’s your first home or your next investment – is a big step. With large sums of money changing hands, it can be stressful trying to make sure that your purchase it a smart one.
So how can you help ensure that you’re making a good decision?
Property inspections are one way to feel confident when buying a new home. A professional inspector offers a fresh perspective and an expert, unbiased evaluation of a property, enabling you to make the best decision for your situation.
Marko Salapura, Senior Manager for Inspections Delivery at Rapid Building Inspections, says that buying a property without an inspection is like signing a contract without reading the fine print.
“Emotions run high when you’ve found a home you love, but an independent inspection provides an objective assessment. It’s about making sure you’re buying with clear eyes and not just following your heart.”
Here are the top ways a property inspection can help you when buying a home.
The benefits of a pre-purchase building and pest inspections
Peace of mind
Staging furniture and a fresh coat of paint can hide defects that you might not pick up – especially if you’re new to the property market.
Enlisting a professional building inspection means you get a thorough and expert examination of the property, checking for major and minor defects, safety hazards, evidence of pest infestations and any other areas of potential concern. Inspectors can also use non-invasive tools to check for less visible defects, such as the presence of moisture (which can indicate mould).
This can provide you with confidence in your purchase, ensuring that any significant structural or safety issues in the house are identified. Alternatively, it can give you the certainty to walk away from a property if it has issues you’re not willing to take on.
Read more: The top questions to ask when buying a property in Victoria.
Negotiating power
Everyone wants to get a good deal when buying a property and a building and pest inspection can assist with that.
A professional building and pest inspection can identify visual defects and safety hazards, as well as less visible signs (for example, moisture), that you can use to negotiate a better price.
Property inspections can also work in the vendor’s favour too. A pre-sale building and pest inspection can identify any issues that could arise from a buyer’s inspection, allowing you to address them before they’re used as a negotiation tool.
Conducting a building and pest inspection before putting your house on the market can have benefits for vendors too.
Property inspections give you budget insights
Owning property comes with ongoing costs, but these costs can vary significantly depending on factors such as age, location, building materials and more.
When you have a pre-purchase building and pest inspection completed, you can get insight into what repairs might be needed immediately, and what might be needed in the future.
For instance, your building report might identify that the property’s gutters are beginning to rust through (potentially leading to roof leaks) or that there are a number of cracks in the wall (which can be caused by anything from moisture to poor construction or even deteriorating stumps).
Knowing what repairs and maintenance issues you’re likely to take on if you purchase the property can help you determine if the home fits your budget.
Read more: How to find and hire a reliable tradie.
Property inspections can identify compliance issues
Renovations to a property can improve its value, but only if done correctly. A building inspection may be able to identify any defects that could suggest renovations have been done.
If you believe that the vendors may have renovated the house, it’s important to check if council approval was provided (where required). If not, you can be held liable for these unapproved works if you decide to purchase the property – not to mention being at risk from potentially poor workmanship.
Properties that include a pool or spa should also be checked for compliance and registration. Confirm with the vendor that the pool or spa has been registered with the local council and that they can supply a barrier compliance certificate.
Property inspections identify pests
According to the Victorian Building Authority, termites cause more damage to homes in Australia than fires, floods and storms combined.
Knowing a property has an existing – or past – termite infestation can be a dealbreaker for many buyers. While vendors must disclose a termite infestation where known, many termite problems go undetected until the damage is severe – at which point you may have already purchased the property.
During a building and pest inspection, a professional inspector can use non-invasive tools to help detect the presence of termites and help you avoid a costly purchase.
Property inspections for strata properties
Properties under a strata agreement – such as townhouses, units and apartments – can have additional financial considerations.
In addition to a building and pest inspection, strata properties can also benefit from a dedicated strata report. These reports can assess financial health of the strata as well as any reported litigation or noise complaints, defect claims and identify any planned major works.
If you are buying a strata titled property, a strata report can assist in identifying crucial information. Image: Getty.
I already own a property – what are the reasons I might need a building inspection?
Existing property owners can find certain types of building inspections beneficial.
These inspections include:
- Dilapidation reports: A dilapidation report creates a visual record of a property before and after nearby construction or excavation works are completed. This is so the property owner can assess if any damage to their property has occurred during the works.
- Owner Builder reports: If you’ve undertaken renovations or other construction works within your property, you may be required to provide an owner builder report (also known as a section 137B report) if you choose to sell the home.
