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via therealestateconversation.com.au

Jon Bahen, director of Abel Property – Cottesloe told WILLIAMS MEDIA about building inspection reports in Western Australia, including what they are, why you need one, and what they cover.

What is a building inspection report? And do you need one?

For most people purchasing a property is one of the biggest financial decisions they will make in their life and it is always important to ensure due diligence on the home has been done. A building inspection report can be part of this process and is a great way to protect your interests and peace of mind.

In most circumstances, a building inspection report is included as a condition of the Contract for Sale. The investigation for this report needs to be carried out by a qualified building inspector, surveyor or builder and the cost for this report is borne by the buyer.

There are a number of different types of building reports with different cost structures. For example, a basic structural inspection can be obtained for $280 for a single level three bed, two bath, brick and tile/metal home with slab on the ground, while a premium inspection which is usually used is around $495. This expenditure is a wise investment considering the potential cost of buying a property that needs extensive unexpected restoration and repairs.

What does a building inspection report look like?

The report will include photos and address of the property, name of the applicant, the time and date and the age of the home. It also lists the name, contact details, and qualifications of the inspector, including their WA Builders Registration number.

Next, a summary of the significant findings will be highlighted to ensure the prospective buyer can easily see what necessary or immediate repairs are required.

The report will contain explanations of the definitions used by the inspector to record the condition of the property and any disclaimers and information about what is not reported on.

The remainder of the pages will contain photos and detailed room-by-room information on the condition of the floors, walls, ceilings, doors, and all fixtures including bathroom and kitchen appliances.

What does a building inspection report cover?

The inspection covers a visual assessment of the property and provides an opinion regarding its general condition. An estimate of the cost to repair the defects is not within the scope of the Australian Standard and does not form part of a report. If the property is part of strata or company title, the inspection does not cover common property, only the immediate interior and exterior.

The electrical and plumbing systems are only checked for basic functioning. If the buyer requires a more detailed report on these systems, they will need to employ licensed professional plumbers or electricians.

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REIWA President Hayden Groves via reiwa.com.au

Although housing affordability has improved in WA in recent times, it remains a legitimate concern for many West Australians.

A recent Housing Affordability Report by the Real Estate Institute of Australia and Adelaide Bank showed while affordability improved in WA on an annual basis in the December quarter 2017, it had declined when compared to the September quarter 2017.

It’s concerning that despite favourable buying conditions and record low interest rates, housing affordability remains such a pertinent worry for many West Australians.

State property taxes are a barrier

REIWA is a strong advocator for addressing housing affordability, and we firmly believe current state property tax arrangements significantly contribute to this problem.

When REIWA surveyed the WA public about this topic last year, respondents overwhelmingly told us that property taxes negatively impact their lives. This is a growing issue and we need to do something to address it.

Home ownership still attainable in WA

The good news is; WA remains one of the most affordable states in the country for housing. Particularly in comparison to east coast property markets like NSW, where the median house price is higher and first home buyers find it more difficult to enter the property market. Here in WA, home ownership is still very much attainable.

In fact, we have the highest proportion of first home buyers out of any state or territory in Australia, with the Housing Affordability Report revealing 34 per cent of all owner-occupier home loans in WA in the December 2017 quarter were to first home buyers.

Additionally, although the average home loan amount to WA first home buyers increased during the December 2017 quarter, it was still $50,000 more affordable than the average loan amount required in NSW. A considerable difference.

However, more needs to be done. While the McGowan Government continues to face a challenging fiscal environment, REIWA still believes an incremental reform of property taxes will encourage both owner occupation and investment.

The residential property market is a key contributor to state revenue, specifically through transfer duty – one of the most inefficient and ineffective taxes. In the long term, we would like to see the Government transition to a broad-based land tax instead of relying on transactional taxes for revenue.

All West Australians deserve to have access to affordable, accessible and appropriate housing stock.

We call on the McGowan Government to commit to conducting a state tax review to look at more sustainable ways of funding essential services that doesn’t impact so heavily on affordability.

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Hayden Groves via therealestateconversation.com.au

The REIWA has come out in support of the WA state government’s plans to improve housing affordability by increasing housing diversity and density.

The Real Estate Institute of Western Australia supports a State Government plan to improve housing diversity and density to boost housing affordability.

REIWA President Hayden Groves said housing affordability remains one of the more challenging issues affecting West Australians.

“REIWA believes that access to secure and appropriate housing is essential to the success of communities and the prosperity of our state.

“REIWA is committed to ensuring everyone wins in property and will work alongside the WA Government to ensure the Affordable Housing Action Plan makes a positive impact to the lives of West Australians,” Mr Groves said.

Minister for Housing; Veterans Issues; Youth, Peter Tinley outlined the strategic plan this week, which promotes a ‘connected city’ by ensuring the needs of our diverse population are met.

“REIWA would like to congratulate Minister Tinley and the WA Government on this initiative that will promote a connected, sustainable and accessible property market into the future,” Mr Groves said.

The McGowan Government aims to deliver affordable homes as part of its METRONET vision and is currently developing its Affordable Housing Action Plan for release in mid-2018.

REIWA will work alongside the Government during the development of the action plan which focuses on:

• Connection between people, place and home;
• Real and enduring affordability for those on low-to-moderate incomes;
• Earlier and more connected housing and support services;
• Creation of diverse precincts that will include options for low-income earners; and,
• Diversity of options to meet diversity of need.

REIWA sits on the METRONET industry board and will work closely to advocate the delivery of affordable housing stock and the creation of METROHUBS.

REIWA will continue to actively support Government in ensuring all Western Australian’s have access to affordable housing through collaboration with the private sector.