High Property Turnover Results In Win For Building Inspectors
Demand In The Building Inspection Sector
The latest report released by industry analysts BIS Shrapnel reveal that the Brisbane property market is the most lucrative in Australia. The June 2014 report, dubbed Residential Property Prospects, shows that Brisbane’s median property price has risen by 8% since January. It now stands at $475,000 which is almost 10% higher than in June 2013. According to BIS Shrapnel’s projections, this trend is set to continue, with an estimated 17% growth expected in the next three years. (Source: News.com.au – Read Article)
These sentiments are also echoed in The National Australia Bank’s June Quarter Australian Residential Property Survey. The survey report, which was released on 10th July, 2014 reveals that the Brisbane residential market is set to have the fastest price growth in Australia, within the next one year.
The increasingly high prices are being attributed to increased activity from local buyers in the housing market. There had been a steady decline in local investors since property prices peaked in 2010. This led to a fall in property prices from its peak in 2010 to its lowest point June 2013. Around June 2013, local investors seem to realize that the prices had bottomed out. And they began returning, and spending. Their spending is leading to housing price increases, and ultimately, more impressive turnover results for the property industry.
The Silent Heroes
The high turnover rates are resulting in increased demand of Building Inspection services. The Building Inspection Industry is one of the least well known, yet most vital parts of the property market. Building inspectors are the silent heroes in every property deal. No deal goes down without their participation. And at any stage during the transaction process, one word from them can send the deal sideways.
The Building Inspection Industry is responsible for ensuring that the safety of buildings is up to standard. Building inspectors are the ones entrusted with the delicate task of ensuring that a building is fit for human use. They check for presence of indicators which can compromise the safety or structural integrity of a building.
What They Inspect
Among the things which building inspectors look out for in a building are:
- Wood Borers
- Timber decay
- Water penetration through walls
- Subsidence of walls or ceilings
- The structural integrity of a building
The presence of any of these things shows that a building is unfit for human habitation. As such, it is in the interest of buyers, sellers, contractors and property managers that none of them exists. And it is the role of building inspectors to carry out thorough checks in order to ensure that none of them exists. Therefore, they are hired during different stages from a post construction or renovation phase to a sales or purchasing phase.
A typical property inspector provides a range of services, including:
- Pest Inspection – checking for the presence of pests like termites and borers
- Handover Inspection – after the completion of construction or renovation
- Pre-Sale Inspection – on behalf of the seller
- Pre-Purchase Inspection – on behalf of a potential buyer
- Pre-Settlement Inspection – on behalf of both the buyer and seller
The pre-settlement inspection is carried out to ensure that both the buyer and seller agree on the condition of the building. This is to eliminate the scenario where different inspectors hired by each party deliver contradictory assessments – a condition which can later lead to unwanted legal complexities.
How They Do It
The way a building inspection is carried out is determined by a number of factors. The most common ones are the size of the building, the purpose of the inspection, the parameters set by the client and the personal style of the inspector. However, irrespective of how it is carried out, the client is usually given a written report detailing the findings of the inspection.
It is also quite rare that a company which offers building inspection services also offers correctional services for any problems found. Most of them just carry out the inspection, and submit their findings. In some cases, they can direct a client to a reputable company which can offer fixes for any problems found.
Scott Mcpherson, who manages Pro Inspections Brisbane, a local Building and Pest Inspection company, commented “Basically, building inspectors play the critical role of verifying the safety and habitability of buildings. As such, they are an important part any building or property purchase transaction. This is the reason why Brisbane’s high property turnover is resulting increased demand for building inspection services.”
Brisbane’s high property turnover is perhaps best epitomized by the June 2014 sale of a high-end property at Fig Tree Pocket. The elegant house sold for $8.25 million in just 20 days. This made it the most expensive property sold in Brisbane since 2011. And, although it attracted interest from as far as China and the UK, the property was bought by a local Australian family. Basically, this deal is the perfect illustration that locals are buying, and turnover is increasing. And, ultimately, the demand for the Building Inspection Industry is also on the rise. Based on reports the market will experience steady growth over the coming years which will benefit investors and local businesses servicing the industry.