Property Inspection Tips That First Home Buyers Need

Why Property Inspections Matter for First Home Buyers

You've worked hard to save your deposit, sorted out your first home loan application, and you're ready to start viewing properties. But before you fall in love with a place based on how it looks in photos, there's something crucial you need to understand: a thorough property inspection can save you thousands of dollars and years of headaches.

For first home buyers in Victoria, knowing what to look for during an inspection is just as important as understanding your Home Loan options or first home buyer eligibility. After all, you're about to make one of the biggest financial commitments of your life.

Before You Even Step Inside

Before you book that inspection, do your homework. Research the neighbourhood at different times of day and on weekends. Check how close the property is to public transport, schools, and shops. Look into local council zoning and any planned developments that might affect the area.

You should also:

• Review the Section 32 statement (Vendor's Statement) carefully before attending the inspection
• Check if the property has any planning overlays or restrictions
• Research recent sale prices in the area to ensure you're paying a fair price
• Confirm your first home buyer budget aligns with the asking price plus potential renovation costs

What to Bring to Your Inspection

Don't show up empty-handed. A proper inspection requires the right tools:

• A notepad and pen or your phone for taking notes
• A torch or flashlight for checking dark corners, roof spaces, and under the house
• A marble or ball bearing to test floor levels
• A tape measure to check room sizes and whether your furniture will fit
• Your first home buyer checklist to stay organised
• A trusted friend or family member for a second opinion

The External Inspection Checklist

Start outside and work your way in. The exterior tells you a lot about how well the property has been maintained.

Roof and Gutters: Look for missing, broken, or rusted tiles. Check the gutters for rust, plants growing, or sagging sections. Water damage from a faulty roof can cost tens of thousands to repair.

Walls and Foundation: Walk around the entire property looking for cracks in the brickwork or render. Small hairline cracks are usually cosmetic, but large cracks - especially diagonal ones - can indicate structural issues. Check if the house looks level or if it appears to be leaning.

Drainage: Visit after rain if possible. Look for pooling water around the foundation, which can lead to moisture problems. Check that all downpipes direct water away from the house.

Fences and Boundaries: Know where the property boundaries are and check the condition of fences. In Victoria, you may need to share repair costs with neighbours under the Fences Act.

Inside the Property

Walls and Ceilings: Look for cracks, water stains, or patches that indicate previous repairs. Run your hand along walls to feel for moisture. Check corners where walls meet ceilings for signs of movement.

Floors: Use your marble to check if floors are level. Walk heavily across floors listening for creaking or bouncing, which might indicate structural issues with floor joists. Lift the corners of carpets if possible to check the condition of floorboards underneath.

Windows and Doors: Open and close every window and door. They should operate smoothly without sticking. Check for gaps that might let in drafts. Look at the seals around windows for deterioration.

Plumbing: Turn on all taps and check water pressure. Let them run to see if water drains quickly. Look under sinks for water damage or active leaks. Flush toilets and check if cisterns refill properly. Don't forget to check the hot water system - find out its age and whether it's gas or electric.

Electrical: Test light switches and power points. Look at the switchboard - old ceramic fuses are a red flag that the electrical system needs updating, which can cost several thousand dollars. Count the number of power points in each room to ensure there are enough for modern living.

Heating and Cooling: Turn on heaters and air conditioners to ensure they work. Ask about the age of these systems, as replacements can be expensive.

Don't Forget These Often-Overlooked Areas

Roof Space: If accessible, check the roof space for proper insulation, adequate ventilation, and signs of water damage or pests. Look at the underside of the roof for light coming through, which indicates holes.

Under the House: If the property has a subfloor area, get under there with your torch. Look for moisture, stumps that have rotted or shifted, and proper ventilation. Check bearers and joists for deterioration.

Kitchen and Bathroom: These are the most expensive rooms to renovate. Check if benchtops are cracked or damaged. Open cupboards and look for water damage. Test the oven and cooktop. In bathrooms, check grouting and silicone for mould and deterioration. Make sure extractor fans work.

Understanding Building and Pest Inspections

Even if you conduct a thorough inspection yourself, you should always include a building and pest inspection clause in your contract. Professional inspectors have the training and equipment to spot issues you might miss.

A building inspection typically costs between $400 and $600, while a combined building and pest inspection runs from $500 to $800. This might seem like a lot when you're watching your first home buyer budget, but it's money well spent. These reports can:

• Identify major structural defects
• Uncover pest infestations (termites are particularly common in Victoria)
• Give you ammunition to renegotiate the price
• Help you walk away from a money pit
• Provide peace of mind about your purchase

Questions to Ask During the Inspection

Don't be shy about asking the agent or vendor questions:

1. Why are the current owners selling?
2. How old is the hot water system, oven, air conditioner, and other appliances?
3. When was the property last painted?
4. Have there been any pest treatments?
5. Are there any ongoing issues with neighbours or the property?
6. What's included in the sale?
7. How old is the roof, and when was it last repaired?
8. What are the average utility bills?
9. Has the property ever flooded?
10. Are there any warranties or guarantees on recent work?

Red Flags That Should Make You Think Twice

Some issues should make you seriously reconsider or budget for major repairs:

• Fresh paint in only some rooms or patches of new paint (covering something up?)
• Strong air freshener smells (masking mould or dampness?)
• Signs of significant water damage
• Major cracks in walls or foundations
• Evidence of pests or pest damage
• Electrical systems that need complete rewiring
• Properties that have had multiple price reductions
• Sellers who refuse to allow building inspections

Connecting Your Inspection to Your Home Loan

What you discover during inspections directly affects your home loan application. If you're using the 5% Deposit Scheme or Regional first home buyer Guarantee, you'll want to ensure you're not stretching your budget too thin on a property that needs extensive repairs.

Some lenders may not approve loans for properties with significant structural issues. Others might require repairs to be completed before settlement. If you're considering a property that needs work, discuss this with your mortgage broker before making an offer.

You should also factor in whether you want a fixed interest rate or variable interest rate when budgeting for potential repairs. A fixed interest rate gives you certainty about repayments, which can be helpful if you're planning renovations. Features like an offset account or redraw facility can also help you save for and manage renovation costs.

Making Your Decision

After your inspection, sit down and objectively assess what you've found. Make a list of:

• Issues that are deal-breakers
• Problems that need immediate attention
• Cosmetic issues you can live with or fix gradually
• Estimated costs for repairs and renovations

Consider whether you have the time, money, and energy to take on a renovation project. Remember, if you're already stretching to afford the property with a 10% deposit or using first home owner grants (FHOG) to help with costs, taking on major repairs might not be realistic.

Your Next Steps

Once you've found a property that passes your inspection and you're ready to move forward, make sure you have your finance sorted. If you haven't already, apply for a home loan pre-approval, which shows sellers you're a serious buyer.

Remember to factor in all the costs of buying your first home:

• Stamp duty (though you may qualify for first home buyer stamp duty concessions in Victoria)
• Legal fees and conveyancing
• Building and pest inspections
• Lenders Mortgage Insurance (LMI) if you're borrowing more than 80% of the property value
• Moving costs
• Immediate repairs or renovations

Don't forget to check if you're eligible for the first home super saver scheme, which can help boost your deposit by allowing you to save inside your superannuation fund.

Property inspections aren't just about finding faults - they're about making an informed decision and understanding exactly what you're buying. Taking the time to inspect thoroughly means you can move into your first home with confidence, knowing you've done your homework.

Ready to take the next step towards buying your first home? Our team at FHOG specialises in helping first home buyers in Victoria understand their low deposit options, interest rate choices, and available grants. We'll work with you to find a home loan that fits your situation, whether you're using a 5% deposit, 10% deposit, or even a gift deposit from family.

Call one of our team or book an appointment at a time that works for you. Let's turn your first home dreams into reality.