*** This 9-point checklist could save you thousands…

*** Don’t let emotion blind you from spotting costly property flaws...

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From the pen of Karin Iten

Dear Investment Academy Reader,

No matter what the doomsayers in the press say, property’s still a hot topic. This means that many estate agents are still trying to dress up wrecked houses as “unmissable bargains”.

And it’s not just the agents. Sellers will do their best to hide faults, some will even paper over cracks (literally) and lead you into the stunning garden to keep your gaze away from the cracked wall.
 
With this in mind, one of my personal finance contacts, Pascale Barrow, spoke to Gerry Pitman, a qualified surveyor who knows every dirty trick employed to con you into a bad investment. He gave her a list of nine common areas that you should check before you agree to sign on the dotted line.

So, if you’re in the market for a new property or thinking of buying property at a later stage, read on and you could save yourself a lot of money and misery…
 
Check #1. Close one eye and look at the property from all (accessible) aspects.
Does it look right? Are horizontal features (roof ridges, window lintels, etc.) actually horizontal and are vertical features (walls, window frames, etc.) actually vertical? Don’t believe the yarn that a crooked house adds charm – it could add tens of thousands of rands to the cost of repairs.
 
Check #2. Check the openings (windows and doors)
Do they open and close properly? Some might have been modified to fit the opening, which could cost quite a bit to correct. To replace a window costs around R2,500!
 
Check #3. Look at the surrounding properties
If the property is one of several similar properties on the street, look at the others. Are there signs of structural problems with them (e.g. rendering on some may indicate that the brickwork is porous)? Look particularly at badly maintained properties as these are likely to show up weaknesses. It’s best to be forewarned before discovering problems months or even years down the line. 
 
Check #4. Look for staining on the external walls
Discolouration may indicate water penetration (possibly caused from leaking gutters). Water penetration is responsible for most of the problems encountered in walls today.

Once a wall’s saturated with water, freezing and thawing cycles can cause cracking, crazing (that crackled effect you'll find on walls) and ultimately disintegration. Added to this, it’ll facilitate, among other things, the loss of insulation effectiveness, ruin interior finishes and be the cause of fungi and mould, which will deteriorate the air in the house and could cause expensive health issues.

Check #5. Take a small but sharp-pointed tool with you
Use a small screwdriver to check timberwork. If you can poke it deeply into the surface, the woods rotten and you’ll need to replace it!
 
Check #6. Are the rainwater goods (gutter, downpipes) made of plastic or metal?
If it’s the latter, look for signs of rusting or leaking. Plastic gutters are vulnerable at the joints. Visiting the property when it’s raining can be useful in identifying these problem areas.
 
Check #7. Look at the roof carefully
Is it bowed? If it is, there might be a problem with the underlying timbers. Are any tiles or slates missing? One or two may not be a problem, but a larger number missing may have allowed water penetration with consequent problems for the timbers and ceilings. (If you’ve skipped ahead in this issue, go back to Check #4 for details on the horrors of water penetration.)
 
Check #8. Wall-covering plants, such as wisteria or ivy, can hide a multitude of problems
Be aware of this particularly on older properties – it may not be such a picture perfect house! Among the problems lurking beneath the foliage, you might discover damp and uneven walls. But that’s not all… insects and rodents use vegetation as a bridge to gain entry to your buildings. Materials left against a wall offer protection to animals that can make nests or travel about in unexposed hiding spots so ask the neighbours about any existing pest problems. 
 
Check #9. Are there any cracks in the walls?
Look for mortar joints (the space in between bricks, concrete blocks or glass blocks filled with grout) that are different to the rest. This may indicate a crack that has been “repaired” by re-mortaring but the underlying problem's still there. If you find a crack, see if it’s reproduced on the inside too. This will indicate a potentially serious problem, such as differential settlement (all builds “settle” to some extent when newly built, it’s when they settle in different levels in different parts of the house that problems arise).
 
In the excitement of buying a new home, it’s easy to let emotion blind you to costly faults with a house. So follow these nine tips to safeguard your investment.

That’s all from me this week. Keep your eyes peeled for your next exciting issue of Investment Academy on Wednesday, we’ve got a new writer joining the gang and he’s just itching to fill you in on the exciting project he’s been working on.

Till next week, here's to your financial freedom…

Karin Iten
For the Investment Academy