Dilapidation is probably not the first thing that comes to mind when buying a new home or an apartment as an investment. Most real estate investment buyers in Australia purchase pre-owned homes or estates mainly considering the overall value. However, there are other things to consider before investing in any property; mainly the current condition of the property. That means the property must be inspected for all the trouble that comes with use, such as mould, dampness, structural integrity, and also the overall healthiness.
Some investors purchase older properties hoping to buy cheap and later renovate. It’s not wise to buy an investment property without an inspection of the current status of the property. Read along to learn more about dilapidation reports and why you need one as a prospective property investor:
Understanding Dilapidation Reports
As the title suggests, a dilapidation report is a professional inspection carried out on any property during a certain time. The report of this type includes information about the current condition of the property, details of any existing damage, and other aspects such as pest issues, structural issues, and so on. But unlike with a regular inspection, dilapidation inspections focus on aspects such as how the property might be affected by construction work, demolition, or excavation. If you plan on renovating or rebuilding on the investment property later on, a dilapidation report will be essential.
A dilapidation report would include detailed descriptions, with photographs, notes and measurements, of the current status of the property. The report is a statement of the property before and after any work is done. These reports are compiled by professional inspectors who specialise in this type of report. For example, you can hire building inspectors in Aldinga that specialises in dilapidation reports for the job.
Dilapidation Reports are Essential Before and After Construction
If the property undergoes any level of construction work, then the owner must call for a dilapidation report before and after construction commences. The report will give details on how the property is, so that the construction crew can make a plan for work or demolition. The follow-up in important to understand how construction has affected the status of the property. Dilapidation reports are important for understanding aspects like site debris, water flow, vibration and others that make construction safe. A follow-up dilapidation report can effectively detail how to conduct restoration work afterwards.
A Necessary Legal Measure
Dilapidation reports are not just an architectural measure; these reports are legal measures as well. As dilapidation reports detail the state of a site, these can function as facts in case a legal dispute arises due to construction or ownership. Plus, the report can also help shed light on fraudulent claims, especially by a previous owner.
Not getting a dilapidation report done also puts property owners at risk for liability, especially in case of a construction accident or environmental harm. The original site condition details can be used in court in favour of the property investor in case a lawsuit comes up. It’s not what most investors expect, but being prepared for the unexpected is a part of being a responsible property investor.