10 points on what to look for when buying property
Assessing your next property purchase can be hard work and takes up a lot of time. Say goodbye to your weekends as you fill them up with opens homes, long in-car navigation sessions, and polite yet repetitive conversations with agents.
Then after all the hours have been put in, the km’s have been driven, and the notes have been scribbled, you have to make a decision that involves hundreds of thousands of dollars and will most likely have an impact on your future– no pressure.
Its fair to say that doing your homework on a property before purchasing is crucial if you want get the best return on all your hard work and time invested so far. To help you make some smart decisions, here are 10 quick pointers on what to look for when you next view a property.
1: Assess the land
Is the property down a slope? This could be bad in the winter months ahead with water flowing under the house creating dampness or affecting the foundations. Does the house reside near a stream or body of water? This may mean the house is positioned on an overland flow path making future building difficult. Have you checked where your underground services are located? Are there public lines running through the site? Check your boundary lines against the flat plan, often fence lines don’t match up and you may be entitled to land that appears to be on your neighbours side. Is there a shared driveway and are there clear boundary lines?
2: Assess the neighbourhood
Spend some time walking around the streets and local area. Who else is out and about? What sorts of cars are parked in people’s driveways? It’s so easy to get swept up with the competition of winning the house that you may forget to check who is living next door. Always go back for a second viewing if possible as that neighbour you glossed over on your first viewing may actually house the local dealer and this will cause future anxiety over the security of your investment (speaking from experience). Check if there is any state housing on the street or ask your agent.
3: Are you in the right zone?
Does your property fall into school zones for popular primary, intermediate and high schools? This will increase your rental activity if you’re buying as an investment and also will retain future capital when re-selling. Look for local train lines, stations and bus routes along with how easily you can access the motorways or the proximity to local shops and supermarkets.
4: Unitary Plan zoning
In which category does your future property reside in? Do you know if you’re in a high-density zone such as Terrace Housing and Apartment Buildings, as this may enable future development potential to your site? Find out what other developments are happening in your area – could it be that town houses going to be built on the neighbouring site and block out your morning sun? You can search for your zoning at the Unitary Plan website here, or other websites such as homes.co.nz now show it in their search info too.
5: What’s lurking behind those walls?
Make sure you or a qualified tradesman investigate the dark, hidden areas of the property - get into the roof cavity and underneath the house. Is there insulation? What state is the framing in and can you see rot or water damage? How well are the piles placed? If they are pre 1945 then your insurer may request they get re-piled. Has there been excavating of earth or signs of prior building work and is this recorded in the LIM? Does it look like there is any leaking or water damage? You can bet if there is water damage in the roof or ceiling, then it has quite likely in the wall framing too. Remember, water only flows in on direction, and that’s down.
6: Extra floor area
Does your property have two living areas? Is there an oversized laundry next to a bathroom? Can you add in an extra bedroom for your future family or to increase your rental yield? Is there another clever way of reconfiguring the property? If you’re not smart enough to draw up a plan from memory and the agent can’t provide you one (ask first) then order a property file from the Council here to get a copy and start getting creative, or call in an architect to help. Improvements are a great way of adding both value and future potential on returning a higher price when it comes to re-sale.
7: Exterior condition
What state is the cladding in? You should always walk around the whole house and inspect the cladding looking for signs of rot or water damage, checking the window sills and soffits, especially on the south facing side. Are there any areas where the cladding comes right to the ground? This is no longer accepted under the building code as it is prone to water damage and will absorb water up into the framing. What condition is the paint in? Remember a house repaint can cost anywhere from $5k-$10k or more so factor this into your buying equation. Also any houses built and painted in the 1980’s or earlier have a good chance of being painted with lead based paint. Test your paint and the exterior surface for lead as removing this can timely and costly and also poses health risks to yourself and family. You can test for lead paint yourself by buying a lead testing kit from your local hardware store.
8: Interior condition
Is there a textured ceiling? This may be asbestos and as an indication of price a 12m2 ceiling recently cost us $4000 for removal. Can you see water marks in the corners of rooms? This could be a sign of a roof leak. Can you see mould in your wardrobes or in the bathroom? This is generally a sign of poor ventilation. Look at your window frames for rot and flakey paint as these may be due for replacing or some serious builders bog and painting. If the windows are timber then they are most likely single glazing, which not only allows more heat in and out but creates condensation leading to moisture and trapped water.
9: Electrical and plumbing
Where is your switch board located and what condition is it in? Does it need to be replaced? The easiest sign your switch board is old is that it has the old porcelain fuses on them like this. While it may be fine for now, in the long term it will be a good idea to get replaced. Another big issue can be with the wiring too, a lot of which is hidden behind walls. If the wiring is old TRS or VIR cables the insulation may have worn off leaving exposed copper – very dangerous. If you’re unsure then always seek advice from a registered electrician, or even ask them to come view the property with you – they should say yes if there’s potential work in it for them. The same goes for plumbing, although not quite as dangerous, but make sure you inspect all of the plumbing under the sinks (kitchen, bathrooms, laundry etc.) looking for any signs of damage. Crawl under the house and check for any leaks and make sure all the pipes are feeding into gully traps. Also don’t forget to check the condition of the down pipes and that they are sending the rainwater away from the house.
10: Storage
Your classic 1950’s state home has very little storage so be warned! People forget to check for storage time and time again so make sure to keep an eye out. Does every bedroom have a wardrobe? Is there a hallway cupboard? Where’s the linen going to go? Does the kitchen have enough cupboards? Is there a pantry? Can you store items under the house or in the ceiling (look for an easily accessible ceiling hatch)? Does the house have a garage or a garden shed? If your husband loves his outdoor activities but your new house has no storage your spare room for guests will quickly become storage locker.
Buying a house is a big commitment and there are lots of things to consider when viewing different properties that will determine if the place is right for you or not. While it is good to take your time and do your homework, don’t let over analysis get in your way either, as most issues can be resolved without it costing you an arm and a leg. The more you do this the better you get at spotting potential issues, the quicker you can put a price on remedial costs, and the sooner you will find that next good deal.
So do your research, seek expert advice, and start buying.