Key takeaways
Look beyond appearances. Fresh paint and cosmetic improvements can conceal expensive structural, moisture and maintenance problems.
Look beyond the dwelling because noise, flooding, neighbouring development and planning restrictions can also turn a property into a lemon.
Cracks, sticking doors, musty smells and poor drainage deserve further investigation.
Apartments require careful scrutiny of the building, owners corporation records and future capital works.
Your inspection is only the first filter. Always use qualified professionals before making an unconditional commitment.
Some of the most attractive properties can also hide the most expensive problems.
Fresh paint, stylish furniture and clever lighting can make a home look impressive during a 20-minute inspection, while concealing water damage, structural movement, poor drainage or years of neglected maintenance.
By the time the problem becomes obvious, the property may already be yours and the repair bill could run into tens of thousands of dollars.
Of course, every established property will have some faults, and a few defects do not necessarily make it a bad purchase.
What matters is understanding what you are buying, what will need attention and how much it is likely to cost.
Start before you reach the front door
Your due diligence should begin in the street, rather than at the front gate.
Tip: Visit the property at different times and listen for traffic, aircraft, trains, barking dogs and nearby commercial activity. A peaceful Saturday morning inspection may give you a very different impression from weekday peak hour.
Look at the neighbouring properties, street parking, security, overhead powerlines and any vacant or underdeveloped land nearby. Then check the local planning scheme to see what could be built in the surrounding area.
A pleasant outlook can disappear if the vacant block next door has approval for a multi-storey development.
You should also investigate flood, bushfire and coastal risks where relevant, as these can affect insurance costs, borrowing capacity, resale value and future demand.
What to look for outside the property
Walk slowly around the outside of the dwelling and pay particular attention to how water is managed.
Gutters should be connected properly, downpipes should direct water into the stormwater system and the ground should generally slope away from the building.
Pooling water close to a home can contribute to dampness, timber decay, termite activity and foundation movement.
Overflow marks beneath gutters, staining on external walls and patches of unusually healthy vegetation near a downpipe can all suggest drainage problems.
For a weatherboard home, look for timber that is warped, sagging, cracked or soft. Pay particular attention to joins, window frames and areas close to the ground, where moisture damage is more common.
Where subfloor access is available, check whether the space appears damp, poorly ventilated or filled with building debris. These are conditions that can encourage termites and timber decay, although only a qualified inspector can properly assess the risk.
Older homes may sit on timber, concrete or brick stumps. Uneven floors, visible deterioration or makeshift packing between the stumps and bearers may indicate previous movement or inadequate repairs.
Restumping or underpinning can be expensive, so signs of foundation trouble should never be dismissed as part of an older property’s “character”.
Examine the roof and roofline
Stand back from the property and look along the roofline.
A sagging or uneven roof may point to damaged framing, movement or previous alterations that were not adequately supported.
On metal roofs, look for rust, lifting sheets and patchy paintwork that may have been used to cover corrosion.
On tiled roofs, watch for cracked, slipped or missing tiles, as well as deteriorating ridge capping.
Faded tiles are usually a cosmetic issue rather than proof of a leak, so avoid trying to diagnose the roof yourself.
The important thing is to identify anything that deserves closer professional inspection.
Check the eaves and ceilings beneath roof edges for staining, bubbling paint or mould. These may indicate water entering through the roof or overflowing gutters.
Check for cracks and movement
Cracks are common in many homes, particularly after periods of changing soil moisture, and many are relatively minor.
However, wide cracks, stepped cracking through brickwork, cracks extending from doors or windows and areas where the two sides of a crack are no longer level may indicate significant movement.
Doors and windows that stick, swing open by themselves or fail to sit squarely within their frames can provide another clue. Sloping floors and gaps between walls and ceilings also deserve investigation.
One sign on its own may have an innocent explanation, but several symptoms appearing together warrant specialist advice.
Look for termite risks
Termites can cause extensive damage before their presence becomes obvious.
Look for timber in direct contact with the ground, garden beds built against external walls, leaking taps and poor ventilation beneath the house.
Timber fencing, decking and landscaping attached directly to the dwelling can also create concealed entry points.
Mud tubes, hollow-sounding timber and blistered paintwork may indicate activity, although termites often remain hidden.
A quick visual check offers limited protection. A professional timber pest inspection should form part of your due diligence, particularly in termite-prone areas.
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What to check inside
Once inside, try to look beyond the furniture and styling.
Open and close doors, windows and cupboards. Check whether floors feel level and whether there are unusual gaps around skirting boards, cornices and doorframes.
Look closely at recently painted areas. Fresh paint may simply mean the owner prepared the home for sale, but isolated sections of new paint, uneven textures or bubbling surfaces can sometimes conceal moisture damage.
A musty smell should never be ignored, particularly in wardrobes, bathrooms, laundries and rooms adjoining external walls.
Mould can result from poor ventilation, condensation, plumbing leaks or water entering through the building envelope. Installing an exhaust fan may help in some cases, but recurring mould often requires the underlying moisture source to be identified.
Test the wet areas
Bathrooms, kitchens and laundries are among the most expensive parts of a home to repair, so spend extra time examining them.
Turn on the taps, check the water pressure and see how quickly sinks and showers drain. Look beneath cabinets for swollen shelving, water stains, corrosion and signs of previous leaks.
Loose, cracked or lifting tiles may indicate age, poor installation or movement. Drummy tiles, deteriorating grout and damaged silicone around showers can allow water to escape into surrounding areas.
Waterproofing failures are particularly troublesome because the visible damage may be some distance from the source. A small stain on a wall can represent a much larger problem behind it.
Check the electrical system
Take a look at the switchboard and note whether it appears modern and includes safety switches.
Older ceramic fuses, ageing wiring or amateur-looking electrical alterations may mean an upgrade is required. This becomes especially relevant if you plan to add air conditioning, an induction cooktop, solar panels or an electric vehicle charger.
Only a licensed electrician can determine whether the system is safe and adequate, so treat anything unusual as a reason to obtain specialist advice.
Be alert to asbestos and unapproved work
Many Australian homes built or renovated before 1990 may contain asbestos products in eaves, wall sheeting, wet areas, roofing, fences or outbuildings.
Asbestos does not automatically make a property unsuitable, particularly when it remains sealed and undisturbed. However, it can add significantly to renovation and demolition costs because removal and disposal must be carefully managed.
You should also check whether extensions, decks, garages, pools and major alterations received the required approvals.
Unapproved work can create problems with insurance, finance, safety and resale. It may also leave you responsible for bringing the property into compliance.
Apartments can hide different problems
With an apartment, your inspection should extend beyond the individual unit.
Examine common areas, basement car parks, balconies, lifts, external walls and landscaping.
Water staining, concrete cracking, rust marks, persistent smells and neglected maintenance can point to wider building problems.
Review the owners corporation or body corporate records, recent meeting minutes, insurance, maintenance history and capital works fund.
Pay particular attention to existing defects, disputes, proposed major works and special levies.
A well-presented apartment can become an expensive purchase if the building requires façade repairs, waterproofing, combustible cladding remediation or a major lift replacement.
Look beyond physical defects
A property can be structurally sound and still be a poor investment.
Note: An awkward floor plan, limited natural light, poor parking, excessive traffic noise or a compromised position can restrict tenant and owner-occupier demand. These shortcomings are often difficult or impossible to correct through renovation.
For investors, this is where due diligence needs to move beyond the building inspection. You must also assess the quality of the location, local demographics, supply levels, rental demand and the property’s future resale appeal.
Many building defects can be repaired for a known price. Buying the wrong property in the wrong location is considerably harder to fix.
Always obtain professional advice
Your own inspection should help you identify warning signs and decide whether the property deserves further investigation, but it should never replace professional due diligence.
Arrange an independent building and pest inspection, use an experienced conveyancer or property lawyer to review the contract and seek specialist advice where concerns arise.
For apartments, obtain a comprehensive strata or owners corporation records review. Depending on the property, you may also need advice from an engineer, plumber, electrician, surveyor or town planner.
Most importantly, avoid using a troubling inspection report merely as a tool to negotiate a lower price. A discount only makes sense when the problem is properly understood, repairable and reflected in your budget.
The bottom line
No property will be perfect, especially an established home that has already lived through several decades of weather, movement and renovation.
Your objective is to understand the difference between manageable maintenance, a defect that can be priced into the purchase and a serious problem that should make you walk away.
A few hundred dollars spent on thorough due diligence can protect you from an expensive mistake. It can also give you the information needed to negotiate confidently, plan future works and buy with your eyes open.
