Hi again,,ok pressed the wrong button……here goes…we are just beginning to embark on this wonderful world of i/p purchasing, have read steves book and am oh so eager to begin the rest of our lives, but as should be expected we have lots of questions! Now first of all was wanting to know what sort of pest inspections you all get done on properties before purchase, is it just the walk thru/written ones or what – as we had heard that they weren’t worth the paper they were written on, as you have no come back on the inspectors even if they’ve missed termites…is that true???? Also who do you usually get to perform these, any pest company (how do you know they are reputable if youre not from that area???)
In all our reading – have read that some of you are happy with a 6% yield, others only 10-11%, yet others only accept a hefty 16-20% yield…now my question is – ok as beginners in all this we have been doing lots of looking and are battling to find any properties that even meet the 11 sec rule (10.4% yield), so where on earth do I find properties with a huge yield, also are they more likely to be units, houses or commercial????
Some of you have mentioned there are “bird doggers” that are on this site…….can you tell us who they are (or PM us), and which areas/states they mainly deal with???? Finally (for now that is), the Wealth Guardian set and the Buyer Beware package, would all of you consider it worth buying or not, or instead just do our own research??? What can you all tell me about them??? Also if I purchase them am I going to be able to claim them as a tax deduction (eg. looking after finances???).
I will thank you all in advance for your replies, as I’m sure we’ll learn heaps…….take it easy everyone, and thanks for bearing with me !!!![blink]Lambsie
Hi Lambsie,
Firstly, when you make a mistake in a post, you can go back to the thread, find your post and then press the edit button, you can then add, delete etc.
Now, I can’t answer all your questions but I’ll tackle the pest inspector one. Unless you know the pest inspecotr then there is no guarantee and even if you know them they is no guarantee, however, most pest inspectors would love to find termites as it means more money for them ie: the owner then has to cough up to have them eradicated otherwise you probably won’t buy the house. I never use one the owner recommends (in case it’s a friend of the owner) who may then overlook the termites.
I have used ones the agent recommends (others will probably tell you not to, to find an independant one) but in both cases they found termites and the owner then paid to have them eradicated. In the most recent case, the owner is also paying to have a bearer under the floor replaced.
So, even if there is no guarantee ie: they could miss termite activity especially if it’s in a wall cavity, I believe they will try and find any activity if it’s there as it means more pay to them for the job.
A good termite inspector will get under the floor in older style housing however, you may need to pay extra to have trapdoors cut if there aren’t any already cut, I’d recommend this if they ring and ask if you’ll pay for trapdoors (this is how they found the eaten bearer in the current purchase).
Hope this helps.
PK.Lambsie..
Please add breaks in your posts as PK has done, makes it easier on my old eye’s [cigar]
REDWING
“Money is a currency, like electricity and it requires momentum to make it Effective”
Count The Currency With This Online Positive Cashflow CalculatorI know its up to the buyer to get all this extra work done, but
I think if you are selling a property it should be up to the seller.
wouldn’t that make life easier…
You walk up to the door and the seller hands you the pest report, and you can make a decision on that instead of each person who wants to buy having to pay for an inspection.
The seller adds the report to the price of the house …[guilty]it would be EZY[buz2]We’ve only bought one property but our solicitor arranged both the building and pest inspections for us. I felt this was the best option as we lived a long way from the property and it is supposed to be the solicitors job to look after our interests.
Regards
SonjaEzy, I believe as of 1 July (or June even) that the ACT government has introduced that rule. ie the seller now has to provide as part of the contract a building inspection, a pest inspection, and any number of other reports as well.
which I find interesting, because a building inspection report I picked up on Friday for a proposed purchase, was ‘Compiled exclusively for Ms Mel’!!! So if I were to provide it as part of a selling package, the buyer is not able to rely on it – or have any comeback to the inspector if they got it wrong.
Guess it will be interesting to see how these rules pan out – and if it makes the process any quicker at all…..
Lambsie, Bear1964 bird dog/spotter in Tassie and Vic(?), and maybe SA. RussH in WA. MiniMogul, Westan, Tasman Property, Castle Dreamer (?), wilandel, Brent all in NZ. DD in QLD. Others, forgive me if I have missed you…
if you do not know your structures, then Wealth Guardian or Trust Magic by Dale Gatherum-Goss (www.gatherumgoss.com) are good to read. Buyer Beware also is pretty good if you are new to the business – although I believe somersoft forum people will happily give you templates for free…..
Cheers
MelLambsie (cute name by the way- just watch out for the wolfies on this Forum!)
Re building and pest inspections… well, presumably they are reputable companies who do them- it is their bread and butter. They are not paid to give you the all-clear really- they are paid to find problems- and they do, in my experience. Enter property investing with a bit or faith, and have that eroded away as things turn bad- hehe
My advice is DO NOT buy an IP with termites, that needs restumping, rewiring or a new roof. You are buying trouble. Would you buy a car that needed a new engine? Probably not. If there are surface problems with a place… no problems. If there are structural problems, then buy another IP- there are plenty on the market.
kay henry
Ezy,
I wouldn’t want the seeler to hand me the reports even if it meant the cost wasn’t mine. If he’s got a mate that’s a termite inspector or a building inspecotr or whatever, he may be able to get reports that look better than what is “actually” there.
I’d always want one that’s as independent as possible, or as Mel commented, it’s marked to me so they are liable to me!
Lambsie,
I agree with Kay Henry that I would not buy a house that needs restumping, rewiring, new roof etc. (But others make money this way by buying at reduced prices, it’s just not for me). However, termites, I wouldn’t rule out altogether as long as they are eradicated and any damage fixed to my liking, if not, then I’m off. Having said that, it depends on the report, if the house has termites that can be fixed but they state there are ares they cannot check then I’d be wary as there could be more hiding, however, if they are able to check everything and no others can be found then I’d still consider it.Good Luck
PKyeah I dunno,
Like PK says, it depends on the damage and they were eradicated. Personally I like buying cars that need new engines coz then I know because I have fixed it, it will last the distance. I never buy a car with a good engine but a crap rusty body…. Kinda relates to real estate… i think….hmmmmm…..Success is 1% inspiration and 99% perspiration.
oops, sorry, I think I lost my point there. [baaa] I mean, termites might not be a big problem to some if they have the right connections of skills to be able to deal with the problem. Whereas other people would find it an overwhelming prospect to replace a beam in the roof.
It gets down to everyones situation and making sure you look at your own situation and think logically. Ask yourself if you took it on, whether you could fix it without any major dramas through your own trade skills or perhaps mates rates from others you know, or whether you would be biting off more than you can chew.
We have found the pest inspector the real estate ppl recommend to be sufficient.
Good luck with your venture!
Steph.Success is 1% inspiration and 99% perspiration.
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