โ Australian Property Investment
Day 9 of 14
Building and Pest Inspection โ What to Look For
Understanding What's in a Building Report
A building inspection covers the structural and physical condition of the property โ roof structure, walls, subfloor, drainage, electrical and plumbing (visually, not with testing), windows, doors, fencing, and outbuildings. A pest inspection covers timber pest activity: termites (active or past damage), borers, and fungal decay.
In Brisbane and SE Queensland, termite risk is high โ the subtropical climate is ideal for termite colonies. Most properties over 15 years old will show some evidence of past termite activity (sealed, treated galleries). This is common and not necessarily a deal-breaker. Active infestation, ongoing damage, or evidence of undisclosed treatment failures is a serious issue.
What matters most in a report: major structural defects (cracked footings, subsidence, failed roof members), evidence of significant water ingress (roof leaks, rising damp, bathroom tile failures), and the electrical/plumbing condition. Minor issues (cracked render, worn caulking, sticking doors) are normal in any older property and shouldn't trigger alarm.
Using the Report in Negotiation
The building report is not just a risk-management tool โ it's a negotiation instrument. A report identifying $15,000 in remediation work (re-roofing, rewiring, subfloor treatment) gives you a legitimate, documented basis to renegotiate the price or request repairs as a condition of settlement.
The best approach: get the inspection done during the conditional period, then come back to the vendor with a specific list of items and a price reduction request. 'The building inspection revealed X, Y, and Z requiring estimated repairs of $20,000. We're requesting a price adjustment of $15,000.' This is standard practice, not aggressive โ vendors expect it.
For investment properties specifically, pay attention to: the roof condition (a full re-roof on a Brisbane Queenslander can be $30,000โ$60,000), the stumps on timber-framed houses (stump replacement runs $1,500โ$3,000 per stump), and the electrical switchboard (old ceramic fuses are a $3,000โ$5,000 upgrade). These are the big-ticket items that change the investment economics.
โก Today's Action
Find three qualified building inspectors in your target suburb area (search the Qld Building and Construction Commission register). Ask each: 'What are the three most common issues you find in properties in this suburb/era?' The answer tells you what to budget for before you even inspect.
๐ก Pro Tip
Always hire a building inspector separately from the pest inspector โ don't use a combined 'two-for-one' package from the same individual. The skills are different. A structural builder and a licensed pest controller are two different specialisations.