Tony Brazier

www.braziers.co.nz

Tony Brazier

The Press - Tuesday 12 May 2009

Look before you buy

Despite this heading many experienced property investors buy properties sight unseen knowing that they have, by now, handled most situations that can be thrown at them. The mere fact that a property is rented, and has been consistently, is enough proof that “it cant be too bad”. More importantly, these days with LIM checks, Property Inspection Reports, Valuers Reports, Title checks, Google Earth, and market photos/videos over the web it is easier to buy by using only the data presented, ie. buying the facts not the emotion.

However, most buyers prefer to inspect their potential purchases and must watch out for particular issues above and beyond the location, proximity to employment and street appeal. Some of these include;

Exterior

Access: Ensure multiple tenants cars can manoeuvre and park without annoyance and frustration. Parking in a driveway can be the cause of much friction between tenants.

Roof/Spouting: Look for signs where water may pool or enter the building due to poor roofing or blocked spoutings. Water causes 90% of the problems in a rental situation. A dollar spent on the roof can save thousands internally. Look for dampness around the foundations. Years of this can undermine the building. These days look out for building structures without soffits, the rain can very easily find its way over the top of the wall with faulty construction.

Light and Air: Ensure you can control the growth of any overgrown plants and trees. Borer love wet, cold, damp areas, lacking in air and so does woodrot. Cut back all plants touching the buildings.

Subsidence: Not all cracks in driveways or paths indicate troublesome subsidence. Sometimes in high building activity the builders didn’t have time to wait until the drains settle before laying their paths. Cracks in buildings as can be seen in the older Summerhill Stone or Brick buildings under the windows often happen as the building settled in its early life, but cracks in the foundations should always be checked by an expert. Cracks in modern monolithic cladding should also be checked as a heated house literally sucks outside moisture, like rain, in through these cracks only to be discovered later when the framing has rotted.

Window frames: Wooden frames are now showing their age. Pooling of condensation on window ledges inside will often show as a rotten or “soft” bottom corner of a window frame outside. They are generally easily fixed but at a cost. This is a hint that there are other issues inside to do with moisture.

Sheds/Garages: In older properties sometimes the spouting drains out onto the ground and into a sump. Although legal at the time, years of moisture soaking into the ground can affect foundations and add to rot problems.

Drains: As LIM reports don’t make definitive statements about the storm water drainage on an older property, a hose running down the pipe for the time of your inspection should show water banking up from any problems further down the drain like large tree roots etc.

Internally:

Once again dampness and water retention are the major issues to look for.

Condensation: Check all ceilings in the corners especially the bedrooms and bathroom where people sleep and shower respectively. Insufficient insulation will allow a “thermal bridge” to reveal damp areas as moisture moves through. Wet insulation or ceilings collect water droplets in the worst cases indicating a leaking roof or burst pipe. Use your nose to test for Janola smells of cleaning off mould recently done. Dehumidifiers are another tell tale sign that the flat is damp. Lack of insulation above, sisalation below and/or sealing of blocks externally allow cold air and moisture to enter the older style of construction.

If wet ground is suspected under the building drop a metre square of polythene under the floor (if access is allowed) and check the next day for water droplets underneath. Remember Christchurch was built on a swamp and river bed. All of these things can be fixed. Plumbing can be checked only so far as you can see or test the pressure and wiring is best done by an expert beyond checking that no light switches are broken or that access to the switchboard is dangerously easy. However most buyers have a tradesperson friend who can advise them cheaply.

Flooring: Sloping floors are less a problem than bouncing ones. A large chimney will have ‘dragged’ an attached floor with it as it settled and may still be very solid ground beneath but soft and bouncy piles are worth getting checked out further.

If, after the inspection, you are still unsure you will start to see the value in how the non resident investor operates by relying on their various reports. However this can be costly if you don’t go ahead with that particular property so a little knowledge will at least tell you what is worth getting a report on in the first place.