As the Director of Action Property Inspections I have personally completed over 20,000 building inspections in the Brisbane area and in that time I thought I had seen pretty much every dirty tactic employed by a few unethical agents. I was however ignorant to the fact that a couple of local estate agents were actually getting away with blatantly threatening to terminate a clients contract if they chose a building inspector that was not of the agents liking. Let me be clearer. Not of the agents liking is the polite way of saying, the agent would prefer a building inspector who’s nick name was Jack Flash and worked for a compony called Dodgy Bros. Incorporated. Let’s face it, a building inspector who finds no faults guarantees the agent a sale and subsequently himself further referral work.

This is however not a rant about a dishonest few within the real estate industry but rather a victory letter. Let me entice you with the details.

Both real estate agents were working for two entirely different agencies within Brisbane. Both lowlife agents however employed the same dirty tactic. The tactic is to state that their client (the purchaser) could use any building and pest inspection company they wanted with the exception of two companies, Action Property Inspections being one of those listed. The estate agent would subsequently claim these companies were excessively picky and have never given a pass on any house he has ever sold. They would go on to say that proceeding with the contract using either of these building inspectors was a complete waste of time and he would subsequently prefer to terminate the contract now.

The fact is, building inspectors never pass or fail a property, they simply document the condition of a property so that a prospective purchaser can make their own informed decision. In our case all faults of relevance are photographed and documented within the report and in some instances video footage taken. There is no refuting the existence of the faults or the severity of their deterioration when professionally documented.

In this instance, playing to our advantage was the naïve stupidity of the estate agents. Whilst we can assume that some prospective house purchasers may have succumbed to the estate agents threats of contract termination, some prospective buyers were curious as to the real reason why an agent was trying to deter them from our service. Subsequently these clients phoned our office to investigate for themselves. They also read through our website, viewed the photos, watched the videos and subsequently booked our service to undertake their inspection, much to the disgust of the estate agent.

The majority of these clients subsequently told us of the agents deception and subsequently provided us with affidavits to this effect.

Over the last two years we have managed to acquire a sufficient number of affidavits in conjunction with private investigation video footage to force one estate agent to settle out of court. Unfortunately the terms of our mutual agreement prevent me from naming the estate agent however should he ever fall into old habits our agreement clearly states that I have the right to expose him for what he is and for the world to see. Finally, I would like to pay particular thanks to those clients who could see the injustice in the agents conduct and took a stance against corruption.

As for the other unethical estate agents out there…… Let the proceedings begin!

Remember, as a house or unit purchaser, you’re entitled to choose the building inspector of your choice. The agent doesn’t dictate who can or can’t undertake your inspection and certainly should not control the outcome of your report. If an agent is dictating who you can and can’t use for your building and pest inspection, you can be sure there is something they are trying to hide. Don’t become a victim of corruption within this industry. Protect your hard earned money with a sound investment and the only way to do this is with a legitimate professional building inspector that you have researched and are confident will provide you with an unbiased report.

BUYING a home is stressful enough, without having to assess every single lender and product in the market.

Here are 10 questions you should ask potential lenders:

1. What loan will suit me best? Review all the loan features such as whether you can redraw or make extra payments.

2. What is the interest rate?

It will be fixed or variable and will determine how much you’ll pay over the life of the loan.

3. How much can I borrow?

Depending on the lender, you can borrow up to 80-95 per cent of the value of the property. However, you should always consider how much you can comfortably afford to pay each month.

4. What deposit do I need?

Most lenders require a minimum deposit of 5 per cent of the property’s value. If your deposit is less than 20 per cent, you may need to take out Lenders Mortgage Insurance. The higher your deposit, the better as it will enable you to absorb sudden fluctuations in interest rates.

5. What are the up-front fees?

Discuss all fees involved in taking out a loan, such as loan application fees and government charges including stamp duty, mortgage registration, mortgage transfer and Certificate of Title search fees.

6. What other fees are there?

Make sure you fully understand all additional fees and costs associated with the loan. For example, are there any monthly fees or charges to redraw funds?

7. What is the total loan cost?

Ask for the comparison rate for the loan you are considering. This rate includes both the interest rate and most fees and charges payable during the life of the loan, which is useful when comparing loans.

8. What benefits are there?

Check if your lender offers any benefits for taking out a loan. Some lenders can offer no transaction or loan establishment fees, discounts on loans and bonus interest on term deposit rates.

9. Can I pay the loan off early?

Chances are you may want to refinance your mortgage before the term is complete, so check whether a lender will charge you a penalty for doing so.

10. What will repayments be if interest rates rise 3-4 per cent?

Ask your lender how much your repayments will be if this happened. It’s important to consider whether you would still be able to afford the mortgage if interest rates were to increase substantially.

by Robert Keogh is chief executive of Community CPS Australia.

Source:  www.news.com.au

A building inspector is never going to be able to give a guarantee that there are absolutely no potential faults lurking within a concealed wall or ceiling cavity, however an experienced building inspector can often see the tell tale signs that may allude to possible faults concealed by the linings. Moisture detection meters and thermal cameras can also provide some benefit in evaluating potential faults concealed by internal linings. Action Property Inspections utilise the latest thermal image technology and moisture detection equipment on every inspection we undertake and it has proven beneficial, however it does have its limitations. Some Brisbane Building and Pest Inspection companies claim that their thermal image cameras are so advanced that they have almost x-ray like qualities providing them with an unsurpassed means of detecting faults potentially lurking within your walls. What a load of rubbish. Whilst the thermal cameras are certainly beneficial and provide a secondary means of diagnostic evaluation they are not a guaranteed method of detecting faults concealed behind linings. Various factors such as weather conditions and the reflective nature of the item being evaluated can impact on the effectiveness of a thermal camera. My advice is to be very wary of any company you engage to undertake your Building or Pest Inspection that claim their thermal cameras are guaranteed to expose faults lurking within your wall or ceiling voids. Whilst I am a fan of thermal camera technology, it is not foolproof.

Hi Brad, The Institute of Building Consultants hold regular committee meetings.  This group is part of the Queensland Master Builders Association.  You can find out more information regarding the Institute of Building Consultants by contacting Karen Haworth on (07) 3225 6421 or email karen.haworth@masterbuilders.asn.au

THE slowdown in property sales is not a sign that the Australian housing market is about to crash, writes real estate expert Andrew Winter.

Property pundits often make the statement that the housing market is about to crash.

This occurs a few times every decade but it seems to suffering overuse since the global financial crisis in 2008.

Then it was all doom and gloom, but here in Australia we picked ourselves up and and just got on with it.

The GFC had the following impact on the Australian housing market: depending on where you live, prices remained largely static or lost a little, but in some cases gained some.

So it was not surprising – although it was a little disappointing – to see recent television reports predicting doom again and claiming price falls of 15 per cent and more off the average Aussie home.

But what is the average Aussie home? Who knows? That is exactly why these wild generic statements are rarely accurate.

It is true that real estate agents have a vested interest in not wanting to see the market portrayed as total doom and gloom. Such predictions can really be a dampener if you are trying to sell your home.

But are we really about to suffer massive house deflation?

It is very unlikely. And it’s unlikely because in many places deflation has already occurred and values have steadied.

And while it is true that the markets that are rising are few and far between, which suburbs are these big reductions being calculated with? Which houses?

Places like south-east Queensland have certainly been hit hard and not seen increases for years. In prime inner city suburbs in Melbourne and Sydney, to claim that prices will plummet is nonsense – demand is so still so high, that its just not conducive behaviour for a price plunge.

And these predictions are based on statistics – statistics that have been collected over the past year. So in effect, it’s a rear vision image that we’re being told about.

Prices have steadied, and dropped in some markets, it is true, but there is always an upside to a decreasing market and that is of course that it is great for buyers.

In a market like we are currently in, the buying is great. This means sellers have to hang in there or sell, take the loss and repurchase to take full benefit of the lower prices in anticipation of future growth. (Because when you buy, you too will get a bargain).

My advice is don’t panic. Get to know the market you want to buy in, I mean really get to know it, study sale prices over the last decade, buy in areas where you can secure a good deal and do not over-commit on your mortgage.

Buy less than you can afford to and build in a comfort zone. Residential property always has a great fallback plan. It’s called “time”! And now is the time to use it.

But will we see these massive drops that are predicted?

Well, if your home is listed with a price expectation of 10 per cent more than it is really worth, add a further 5 per cent and yes, you could see yourself  “lose” 15 per cent.

But how much of a true realistic value is that?

The heavy losses being faced in the UK and US were caused by bad lending practices and housing policies that just don’t exist in Australia. They stretched residents in those countries well beyond their means and created a property bubble. But even in these depressed markets, there are signs of recovery.

Owning a home remains an Australian dream. That dream creates a demand which together with a solid economy protects us against crashes.

Be a realistic seller and a buyer with an eye for a bargain, keep calm and carry on.

* Andrew Winter is the host of Selling Houses Australian on Lifestyle.

Source:  http://www.news.com.au

As the director of Action Property Inspections, I was one of the first inspectors to complete the new pool fencing course. Despite high hopes within the industry that the new swimming pool fencing legislation would be effective, it appears to be more akin to the disastrous roof insulation scandal. If correctly enforced and managed, the new legislation should significantly help prevent incidences of child immersion or drowning. I am however astounded at how many times I’ve undertaken building inspections on properties that have swimming pools and have subsequently been told by my clients that they have been issued with a fencing certificate despite glaringly obvious faults with the fencing.

It would appear that some pool fence inspectors are clearly incompetent or are simply out to earn a fast buck. One of the concerns for prospective homebuyers is that should a child drown in a swimming pool the pool fence inspector who provided the certificate would be liable, however, the first port of call for a distraught parent having just lost their child would be to sue the home owner. There is no easy solution at this point in time. Should you have any concerns regarding the compliance of your swimming pool fencing I would certainly recommend undertaking your own independent evaluation from a different pool fence inspector. We can only hope that the pool fence operators giving certificates on unlawful pools are weeded out of the industry before a drowning occurs. In the meantime homeowners beware!

As the director of one of Brisbane’s leading and foremost Building Inspection companies, Action Property Inspections, I have seen the rise and fall of many Real Estate Agencies and Building Inspection Companies over the years. Only the most diligent and ethical companies will survive through a soft market. Bearing this in mind I would like to relay the events that followed one of last Friday’s building inspections.

Last Friday I undertook a pre-purchase building inspection on behalf of a client. It was an uneventful inspection with the house being found to be in good condition however requiring some degree of maintenance and repair. The faults detected were by no means major however did require fairly urgent attention and further monitoring to prevent potentially more significant deterioration occurring. The building inspection results were verbally explained in detail to my client with an email and hardcopy version of the report being sent that evening. As it turns out my client decided to terminate the contract due to reasons extraneous to the building inspection, however decided to use the report as their reason for termination.

Four days after the inspection, I receive a phone call from an irate estate agent. “My client has pulled out of the contract and it’s all because of your building report”. My rebuttal was simple, “The report states that the house is in good condition and typical of its age, however three main issues require urgent attention to prevent more significant damage occurring. What do you propose? that I leave these issues out of the report to make your job easier”. His response was a truly sad indictment of the real estate industry, however appears to be an emerging trend. He stated. “I’m not asking you to leave the faults out of the report, I’m simply stating that you don’t have to make them a priority or go into detail about these issues. The building inspection report should be brief and clearly state that the house was still a good buy”. He went on to say. “We need to work together. You scratch my back and I’ll scratch yours, it’s the way the industry is. If real estate agents don’t make sales, you don’t have a job“. My subsequent response to his ignorant unethical mentality would have probably made a hardened sailor blush and subsequently could not be put into print. Whilst I believe most real estate agents still strive to be ethical there is certainly an emerging trend to sacrifice honesty and integrity in the pursuit of a sales commission, particularly given the current market. After numerous conversations with like-minded building and pest inspection companies they also confirm that certain estate agents have requested reports be softened or that an inspector should try and coerce a client into proceeding with a purchase.

Given time the global financial crisis will simply retreat into history and the housing market will return to normal. I however can’t help but wonder how many real estate agencies or building and pest inspection companies will still have their reputation intact.

WEAKNESS in the real estate market has reduced property prices, but finding a bargain still requires research and a businesslike approach by investors.

A low price doesn’t automatically mean it’s a bargain, as other prices in the market may also be lower, but experts say there are several strategies to help buyers get a good deal.

"Keep an eye on properties on the market because generally speaking, the longer a property languishes on the market the keener the vendor is to sell," says university lecturer, author and property investor Peter Koulizos.

Investors and other buyers should be constantly monitoring the houses they are interested in, he says.

"When you start to see the price fall, that’s an opportunity to get in," he says. "If they have already succumbed to the fact they have to bring the price down, now it’s just a matter of how far down."

Koulizos says it’s a good idea to discover why a property is for sale. "If they are relocating, they’re more likely to negotiate a good price than if they’re just testing the market," he says.

"If you have found they have to sell because they already signed a contract to buy elsewhere, it’s an opportunity to put in a lower offer, but you need to put it in with no or minimum conditions. This can make an offer more appealing."Destiny Financial Solutions founder and author Margaret Lomas suggests finding out as much as possible about the property and the vendor.

In her new book, Investing in the Right Property Now, Lomas says negotiating is as much about attitude as it is getting the numbers right. "What is the right attitude? Quite simply, it is the attitude that if negotiations fail it won’t matter. There will be another deal, most likely a better one, around the corner," she says.

"Where a vendor refuses to negotiate, you should also refuse to continue."

Lomas says buyers should only increase their offers in small amounts, and never tell an agent their maximum price.

Defence Housing Australia’s Tony Winterbottom says it is not always about price.

"The bargain may appear as the renovator’s special, but that means to realise the bargain, you have to invest a lot of your own time," says Winterbottom, DHA’s general manager of sales, marketing and portfolio management.

"What is your time worth? Are you better off paying a bit more and using your time to make money some other way say, in education?"

Winterbottom says investors should look for signs of positive change in the neighbourhood.

"Are schools growing? Is public transport expanding? Is a major retailer opening or closing? Crime statistics?"

Source:  www.news.com.au

It should also be noted that the allocated number of days in which the inspections are to be undertaken are usually consecutive days including weekends. We would therefore always advise obtaining 14 days to provide you with sufficient time to evaluate the Building Inspection Report in a relaxed manner in order to make a sound decision with regards to your prospective property purchase.

when they obtain a Pre-Sale Building Inspection Report. In fact, in most cases the Pre-Sale Building Inspection is undertaken in an attempt to prevent a potential house purchaser from obtaining their own more detailed Pre-Purchase Building Inspection. It is a sad indictment of our industry that many Building Inspection companies are quite happy to provide watered-down, vague and misleading reports to accommodate the requirements of a vendor or estate agent simply to obtain an inspection fee. You should also consider the fact that by the time you receive a copy of the Pre-Sale Building Inspection Report further deterioration and neglect may have occurred and would not subsequently be represented in the report. You will also have to consider the fact that you may have little or no recourse against the Building Inspector who undertook the Pre-Sale Building Inspection should you find faults when taking possession of the property, as this report was in the name of the vendor and not the purchaser. By all means thoroughly read the Pre-Sale Building Inspection Report if it is presented to you, however, always source your own Pre-Purchase Building Inspection ensuring it is independent from both vendor and real estate agent.