I’ve just received a property inspection report which states the house I’ve put a deposit down on has moderate structural damage thanks to termites.
There is damage visible in bedroom skirting boards, in wardrobes and a number of other things.
Do the seasoned investors on this forum quiver at the mention of termites or take it in their stride? I can not negotiate the price down any further.
Look forward to reading all your advice and experiences.
Blondie
Ié had a termite infestation in one of my investment properties and it is a very expensive affair.
It’s ahrd to tell how extensive the damage is. It’s not worth baragining down the property.
Make things easy on yourself. Move on to the next one.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.metropole.com.auI would agree with Michael.
Unless you love the property and want it for other reasons, it is too much hassle to ensure completely free of termites.
Once there, there is always the possibility they will come back. The nest can be 100m away from where you actually see the activity and hence almost impossible to be sure you have everything.
You need to factor in the cost of repairs plus cost of periodic inspection and spraying as well.
Just a note on the cost of eradication of a termite infestation. I noticed with my first venture into WA market that the cost of eradication is the responsibility of the Seller.
Some areas are prone to termites, and it’s simply a cost that you should factor in, to have periodic treatment or inspections.
Where I live in the South of Sydney, there is no avoiding temites, without treatment, but I would not have considered not buying here for that reason alone.Mal
Getting out of your comfort zone, can help you become comfortable
I would also agree with Michael. The trouble is that it would be hard for you to establish the true extent of the termite damage in the home and thus the require repairs and cost.
You would effectively be buying a property with a unknown downside.
I will qualify that comment by saying that if you are handy and could fix the potential problem yourself then it may be a different story and could make the investment viable.
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I’m told there is are no active termites, only termite damage from the past. To the eye, it is not extensive, more aesthetic. Does that change anyone’s thinking?
I hear Brisbane and Sydney home owners are less fazed by the T word than us in the cooler cities.
Look forward to more replies!
Blondie [daisy]The visible stuff in the bedroom is not really an issue. What you need to qualify is what other parts of your potential investment that the ants have turned into paper and ant spit.
What does the report mean by moderate structural?
[email protected] – Experienced investors living in NZ who can find properties to meet your needs!
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Don Nicolussi | Mortgage Broker - Home Loan Warehouse
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Email Me | Phone Me"I think of finance as a technology, a way of getting things done." Robert Shiller
We’ve had two instances of termites.
One was our second IP that we bought based on the lovely presentation. The Vendor had done a marvellous job in covering up all of the damage with masking tape and repainting, such that it looked like nice new wood. Our trusty “Mr White Ant Guy” missed the lot.
Re-reading the very fine (like 1/2 font) print, the certificate was valid only for the 24 hour period in which the inspection was carried out. Inspection was simply carrying around a screwdriver and a torch and saying things like “Nah mate, she’s good, this looks fine to me”
It cost about 2 months of hard work and about 12K to repair and renovate the damage and eradicate the active termites. Came up looking trumps. We then sold it to the next door neighbours for a song. We weren’t that smart but we could lift heavy things back then. [blink]
After that incident, we’ve never had a white ant inspection done – except for one near a river. Once again the trusty screwdriver came out, which confirmed my view that I can hold a screwdriver as good as the next man. That one was free of white ants.
Our latest acquisition (no inspection done – due to the massive amount of ‘stuff’ in the warehouse) also has active white ant damage. If we had of got an inspector in, he would of simply ticked the box on the form saying access not adequate.
After spending 3 weeks clearing out the tenants garbage (I love tenants when they do that…) we were able to see the little critters and the damage they have caused. Pretty extensive. We are talking maybe 2K to get rid of them. No biggy.
Termites don’t bother us much any more as the land content of our places are now pretty high (latest one was 92.5%), so there isn’t alot of ‘value’ to damage really.
If you are buying a really spiffy house, where the land is worth say only 30% of the purchase price, then yeah, I could see why you’d want to be sure…there is alot of value to eat there. If they aren’t active any more, easy to assess damage.
If I was you, I’d be looking mainly at the strategic capital advantage you can extract from the land. If it’s good – great. If not spectacular, move on.
The termites and/or termite damage in the long run don’t really factor into the equation IMO.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Dazzling
You are a fountain of knowledge! Thank you for that post, it is tremendous help to read your experiences.
Apparently the termites are not active, the vendors say they have a certificate from some pest control co. to attest the fact. I will see it tonight.
Just like you, there was ‘junk’ cluttering the bathroom (which is where the problems often start), and the room which had the most skirting board damage. Also the fence and garage were effectively eaten out. Recent repairs on the latter two were apparant. Of course, the inspector ticked “No Access” and promoted a “second, more invasive” search. :roll:
House is a good buy, possibly not a great one. Very frustrating, given the extent of damage is impossible to tell. Maybe I should go in with a trusty screwdriver and do my own research!
It is about the location though, and the damage done has been fixed, cosmetically at least. I’m told the termites are NOT active. If I decide to buy, an extensive clean-up and termite-parameter is needed.
Few days till I have to Yay or Nay the home… PLEASE comment, any and all opinions and experiences are welcome in this thread
[exhappy]
Hey Blondiie,
Agree with Dazzling that inspections can really be done by anyone as long as you know what to look for. If you can actually get under the floor and take a look at the stumps, bearers and joists, all the better!
The reality is that termites are everywhere and while there are “termite areas”, I wouldn’t let this stop you purchasing a property.
As for the “moderate” damage, again that in my experience is a tick in the box. It could mean that the skirting boards need replacing or replacing structural elements. I still get pest inspections done but don’t be afraid to get under the house and take a look if you can.
Also gives you a bit of insight into what is actually under that ugly carpet or lino!!
Hi Blondie
I agree with Don & Liz. The visible damage can be the least of it. By the time they have eaten into the room, they’ve gone through the walls etc. If you can’t get under the house ie slab construction, perhaps a builder can pull off part of the damaged skirting and gyprock to see behind the wall. This will help determine if there’s stuctural damage, and give you an idea of repair costs.
Regards
Wake
Blondie,
in Qld, termite defense and prevention is the key. Termites, like electricity, take the path of least resistence. Remove anything that could attract them to your house such as rubbish under/around the house, timber wood chips in the gardens, and even timber edging/landscaping around your garden beds (some exceptions with treated and hardwood timbers). Ensure there are no bridges from the ground to your house (that means that if on stumps that the ant caps are in place, and there isn’t any timber leaning against the house, circumventing this protection. Once saw a makshift plantpot holder act as a lovely bridge for termite access). If not on stump then it’s a bit more expensive (believe it or not). Will need to look at termite barriers (chemical, last for a couple of years then need to be redone).Yep, we’re a little more understanding of termites here in Brisbane but a knowledgable home buyer can save a few dollars if they know what their doing. Case in point. Latest find had active termites (nesting in a pile of coppers logs under the house (yes! treated timber and it was turned into a nest! Maybe not genuine Coppers logs hey?). Anyway, turned out they were the subteranian type. need to return to the earth every day or they die. Also they prefer soft wood to hard so we knew the floor joists, bearers and wall studs were sound. Just had to replace a few of the floor boards. So once we’d removed the nests access to the house (uncapped stump)whatever termites left in the house just died off.
Poisoned the nest, replaced the boards, cost me < $500, saved $3K off the price.Also termites (all varieties) love damp. If you have drainage problems around/under the house, you could be inviting trouble.
Thats the extent of my knowledge with these lovely pests. Not many houses in Qld without past activity so isn’t a big deal if you can verify the structural soundness. Unfortunately in your case there’s no way to tell the type of termite you had which makes it more difficult to predict the extent of the damage.
Any exisitning house in my area (inner west Sydney) is likely to have a report of some previous termite damage. As yours is old damage, then you don’t have to worry about termites, just checking for damage.
It’s true that this is an unknown factor, and can potentially become blown out to huge expense – but seeing as termites have some clear behaviour patterns then you can lower the risk by ‘following the water’. If you thoroughly check areas that are damp (bathroom, under the house, any area that you notice gathers runoff) and they aren’t too bad then you’re probably safe.
We had a property that we bought with inactive termite damage. It was a victorian terrace, and there was more damage done by damp leaking in in certain areas than by termites.
During renovations we had to dig a trench down the side path to put in new stormwater drain, and during that process it created waterflow against one wall and under the house… giving termites a perfect ‘in’. We soon after found some live ones in this section of the (already rotten) windowframe.
We sealed up the access point, finished the drainwork, and brought in the spray guys. They dug small trenches under the house around the brickwork for the spray to soak into, and doused the ground and woodwork under the house. You’re meant to spray every year as a preventative, and it would be smart to do this in many areas even if your house has never had termite problems. (Though new houses often employ other termite resistent methods in construction, such as ‘caps’ on the brickwork, that reduce the need to spray).
Living in a fairly dense urban area, we have no idea whose house had the termite nest as it could be several streets over. So much of Australia has been affected by termites at one point or another that, if there is no significant damage evident when you check key ‘damp’ areas, it would be silly to not buy simply because of this.
Once you’ve bought, make sure you termite proof the property as much as possible, and check regularly for signs of infestation. This might cost a couple grand but is rather insignificant when you consider the average cost of property (upwards of $500,000 where I live).
However, use it to your advantage – try and negotiate a lower sale price using the termite damage as reason. Get a quote on the cost of replacing the skirting and wardrobes, and include it when you request a house price reduction.
Good luck.
Thank you again to all who have contributed to my thread, I really appreciate your opinions.
Special thanks to jhopper, branie, and Luci for your inspirational posts.
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