Purchasing a resale landed property is never an easy decision. In fact, this move is likely a more difficult one compared to purchasing a newly developed condominium unit – which in most cases would be presented to you in tip-top condition.
The physical condition of landed properties differs from home to home. Some may have experienced lots of mistreatment from owners, tenants or landlords, resulting in conditions that are not too ideal. If you’re fortunate enough, you may encounter the more decent properties before making your decision.
When you’re purchasing a landed property in the hope of capital gain, you’d be wishing for the condition to be decent. This would mean not having to incur extra costs to renovate, revamp or maintain the property.
The ability to identify both the large and small details of the property will give you an edge in recognising the issues you need to resolve with your potential property. It will determine whether the investment will be a rewarding one or not.
If your sole purpose of purchasing the landed property is for rental income and you wouldn’t mind resolving some extra issues, it can be advantageous (in terms of the potential profit you can make on the investment) when you purchase a property that needs some work rather than one that is already presentable.
But how would you know if an aesthetic facelift is all a property needs?
Foundation
The first rule when purchasing a landed property – completely avoid one that has suspect or weak foundation. Resolving a foundation issue is both time-consuming and expensive.
For a property that is built on a strong foundation of concrete, the only possible work required is levelling.
However, for properties that lack a strong foundation, its weaknesses are usually visible. They can come in many forms; cracks are the more common ones. There are others too, such as unaligned brick walls or window frames and doors.
Moisture
Landed properties which are built with an added basement are more likely to incur moisture issues. Do not be too concerned over small cracks; nevertheless do watch out if leaks do occur in the cracks.
This can result in the growth of unwanted mould.
The costs associated with resolving moisture issues are not cheap. It can potentially strain your finances and it is an unworthy cause.
Roofing
Fixing the roof is never cheap. A new roof has a lifespan of up to 20 years. The amount spent on fixing the roof depends on its age and condition.
It is common to see roofs losing their colour but this can be easily resolved with a quick clean using a chemical agent or bleach.
If you face an issue with the roof, try to see if there’s a possibility in simply placing a new layer over the current one.
This reduces costs substantially rather than having to replace it with a brand new one.
Plumbing
Do your best in examining the condition of the house. Check if all the toilets, taps, pipes and water heater are working normally.
For older homes, examine the roots of plants and trees to see if they might cause future piping issues.
Most importantly, never leave out the sewage system. It is located underground and can turn out to be one of the biggest problems for you.
Fixtures & Appliances
Home fixtures and appliances will experience the usual wear and tear after a period of time.
These usually include the doors, windows, walls, air-conditioning, kitchen appliances, etc.
Do your research and pick what’s the most economical solution to your problem. For instance, re-painting your wall would be a more practical solution than replacing your entire wall.
Electrical Wiring
It is always important to have a quick walk through the entire house to test if the switches and electrical units are working properly. They undergo wear and tear too and would need to be replaced if necessary.
Fixing electrical wiring issues do not come cheap as well.
It takes time to develop an eye for detail when it comes to property. If you feel that you lack the knowledge of how to identify promising properties, don’t be shy to seek professional help.
Last but not least, always ensure that your contract includes a clause which states that an agreement will be reached only after your property professional reports back to you with a satisfactory review.
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