Help, Termite Report from REA

Help,

I like one mortgage auction house, the house is in nice area and back to the golf course, but when I ask the contract, there are 2 pest inspection reports that said there is evidence of termite damage & termite treatment. I don’t know how much the damage, I plan to call the inspector to get more information & probably do another inspection with thermal imaging camera (not sure how it works but according the information from internet, it can help to identified the damage), do you think is worth the effort?
In summary the report said

The property is a two storey free standing residence. The walls have a construction of fibro and timber flooring, brick piers & metal roof.

Areas in which visual inspection was not available:
•Inspection to the interior flooring was restricted due to floor coverings.
•The internal perimeter roof timbers could not be inspected due to the pitch of the roof.
•Due to sarking of the roof, the tile battens could not be inspected.
•Inspection to the roof void was hampered due to air conditioning ducts.
•Due to construction type, there was no access to the skillion sections of the roof void.
•No access was made to the rear 30% of the sub floor area due to construction type – concrete slab.
•Timber flooring has been installed over the concrete slab to the lounge room & dining room therefore no inspection was carried out to the underside of these timbers.
•Inspection to the edge of the concrete slab was restricted due to the fibro.

At the time of inspection was visible evidence of subterranean termite workings and/or damage located? YES
•Termite damage and/or workings were found mainly in but not limited to the following areas: Sub floors timbers, roofing timbers and wall frame timbers.
•Evidence found in front bedroom LHS front wall & in top of stairwell also old mud lead found in sub floor area under bathroom.
•The termite damage appears to be extensive to severe.
•The following evidence of a possible previous treatment was found: Termite baiting system present.

At the time of inspection there was visible evidence of wood rot in window frames due to leaking flashing.

•Evidence of cockroach infestation to the roof void & sub floor area.
•Evidence of rodent activity to the sub floor area.
•Evidence of Lyctus Borer attack to the bearers & joists.
•Excessive moisture was noted to the window frames.

Environmental conditions that are conducive to the termites.
•Drainage: Adequate
•Ventilation: Adequate
•Termite Shields (Ant Caps): Inadequate
 
do you think is worth the effort?
NO - I'd be moving onto another property.

The killer clauses in the report for me:

At the time of inspection was visible evidence of subterranean termite workings and/or damage located? YES
•The termite damage appears to be extensive to severe.

Run, do not walk - to the next property.....especially if this is your first one.

Other more experienced seasoned investors might proceed and fix it all up etc - but you don't sound like you fall into that category - yet. :)
 
I would not waste money on a pest report - the property sounds like a KDRB - if you want the land the go for it - the house will have to go.

Move on or look at building your dream home
 
Just to give you some idea of what extensive damage could mean.

These are pic's taken as we started repairing the termite damage from long gone termites. I knew there was damage but had no real idea how extensive the damage was.

In the end we replaced every internal wall downstairs and a substantial number of 1st floor floor joists. We also had to install 2 steel beams to replace major structural beams that had been attacked.

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Some more pics following
 
Two of the replacement walls built

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Joist being joined

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Just a pic showing most of the walls open and rebuilt

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We did all the work ourselves and it took us a while so I imagine that for a builder to have been involved would have cost a fortune

Cheers
 
And you say its Fibro, so probably asbestos.

Even the cos of knocking that down might be prohibitive.

Is it worth it for the land value (allowing for knockdown) alone? If not ... run away screaming :)
 
NO - I'd be moving onto another property.

The killer clauses in the report for me:



Run, do not walk - to the next property.....especially if this is your first one.

Other more experienced seasoned investors might proceed and fix it all up etc - but you don't sound like you fall into that category - yet. :)

Yeah that's what I reckon I'd do, run towards a winner... "extensive" can be quite extensive as shown in photos above and the inspector didn't see all of the property either
 
Just to give you some idea of what extensive damage could mean.

These are pic's taken as we started repairing the termite damage from long gone termites. I knew there was damage but had no real idea how extensive the damage was.

Some more pics following

That's amazing. Talk about pro-active!

So these were Elvis Termites, "Elvis has left the building"

I'd love to know the story behind this purchase and the outcome.
 
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