Pest Report Comments

[kiddfei]

Hi All

This is my first thread here.

Really appreciate if you guys could provide some comments on the pest report on a 3br house built circa 1920. It was renovated very recently but the report lists the following defects:

Subterranean termite damage - YES
Evidence of wooden decay / fungi – YES

Access should be gained – YES

Subfloor
Timber is hollow – replace damaged timber

Timber formwork
Remove all formwork and timber debris
Remove all of the timber debris from the subfloor
Improve the subfloor ventilation

Have a plumber connect the downpipe

Extend the overflow pipes to the nearest drains

NO VISIBLE EVIDENCE OF ACTIVE TERMITE.



We are not going to undertake any development on the house in the foreseeable future, except for necessary mitigation recommended in the building and pest report. So is this a deal breaker? Or is this past termite condition acceptable considering the age of the building, of course subject to the sale price?

The above treatment probably costs 10k? Should we get a quote before auction?

If we make all the mitigation suggested above and be very careful on the pest control and monitoring, will it possibly remove any indications of termite activities if we undertake a pest inspection again in the future (in 3 years to sell the property to say).

Any suggestions will be appreciated, the auction will be in two weeks. Thanks!
Phil

 

[Propertunity]

So is this a deal breaker?

No, not in my opinion

Or is this past termite condition acceptable considering the age of the building, of course subject to the sale price?

Look, in a nearly 100 year old property, at some stage of its past (and possibly future) life, it will have suffered a pest attack.

The above treatment probably costs 10k? Should we get a quote before auction?

$10K is plenty to allow.

Bear in mind, many people who you will be bidding against, will not have even had a P&B report done. (crazy I know). But these people may be prepared to offer more than you. Work out a limit for yourself and stick to it.

All the best on auction day!

 

[kiddfei]

But would it really has a lot to do with subfloor?
Any suggestion I should get a quote for all the replacement before the auction?

 

[wylie]

I would ask a builder to quote. It shouldn't cost you, but we have a builder who has been happy to quote on such jobs for two friends who would likely not get him to do the job, but who needed such a quote before selling to show prospective purchasers how much the "fix" would be.

He was happy to charge $120 to do up the quote, knowing he would never likely get the job.

Perhaps you can find a builder who will quote for a small fee, and he might agree to refund the quote fee if you give him the job after you win the auction?

 

[kiddfei]

Thank you for all the replies.

Just wonder what the general price difference is while a property like this has a termite history? Aim to make the condition better will possibly 'add value' on the property? like replace all the damaged subfloors?

 

[strongy1986]

Thank you for all the replies.

Just wonder what the general price difference is while a property like this has a termite history? Aim to make the condition better will possibly 'add value' on the property? like replace all the damaged subfloors?

No price difference termites or no termites

Reason is - the property us going to auction the people bidding will assume the property is fine and will find out the problem many years later

You are in a tough position - you know there is a problem with the property and are likely to bid less or be more hesitant than those who don't know about the problem
Is it investment or ppor

 

[kiddfei]

It's an investment for the next two years and then we will move in when having a bigger family...yes, i reckon it's tough...I will get a quote for replacement on damaged subfloor soon. Do you think it is all right considering not all the properties have subfloor and full brick walls? It's a very old house so I assume every serious bidder will have pest report done?

 

[Propertunity]

....considering not all the properties have subfloor...

The only properties without a subfloor, are slab on ground.

It's a very old house so I assume every serious bidder will have pest report done?

No, wrong assumption to make!

 

[Xjas]

If we make all the mitigation suggested above and be very careful on the pest control and monitoring, will it possibly remove any indications of termite activities if we undertake a pest inspection again in the future (in 3 years to sell the property to say).

I think you cant really remove the evidence of termite damage as the next building inspector will notice the repair work done to the sub floor and will assume it was a termite damage being repaired.

Also on the idea of renting for 2 years and then moving in, I dont know what state you're buying in so the rules might vary but when I considered the same thing in NSW the numbers didn't really stack up well so if you haven't already it might be worth working out rent vs CGT vs stamp duty etc.