They were very excited about buying their first home

IPI was conducting a routine Pre-Purchase inspection for a Melbourne based property investment syndicate. During the inspection the inspector noted the springy floors throughout every room. The truth was out when the inspector gained access to the under floor space.

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After searching for over eight months they finally found a property they could afford, close the shops, public transport and schools. So they had a tick in all the box's. Mr & Mrs. SG made an offer with a building clause that read something like, "Subject to receiving a satisfactory structural report". Mr & Mrs. SG are newly weds with a six month old son and very excited about buying their first home.

Although it was a real struggle to get the deposit together, family and friends helped out here. Mr & Mrs. SG had pre approval for a home loan so they had a budget. After searching for over eight months they finally found a property they could afford, close the shops, public transport and schools. So they had a tick in all the box's. Mr & Mrs. SG made an offer with a building clause that read something like, "Subject to receiving a satisfactory structural report".

IPI was contracted to perform a pre-purchase inspection for $300.

The inspection found the property to be structurally sound. HOWEVER!!!

1) The roof was rusted out and leaking in numerous places
2) The guttering was rusted out and down pipes were broken or missing
3) The plumbing was badly corroded and leaking in walls and under the floor
4) The toilet bowl was broken and unusable
5) The plaster walls and doors were badly damaged in many rooms
6) Power points were hanging loose with exposed wiring
7) The electrical wiring was the old lead case wiring and the light switches and power points were cracked & broken with exposed wiring
8) Numerous window panes were broken and exposed to the weather.

Basically the property was structurally sound in its current condition and under the contract they had signed (without having it checked by there solicitor before signing) they are still obligated to buy the property.

The day after IPI delivered the report, Mr & Mrs. SG arrived at our office in tears with both there parents wanting to know how much the repairs would be. IPI estimated about $30,000 to make the house habitable and safe, but about $50,000 to restore the house to a reasonable standard similar to properties of the same age that have been reasonably maintained.

More tears flowed when the realization set in that this house will bankrupt them before they could even move in. Both sets of parents were also devastated to see there children in such a predicament and asked what can they do.

IPI suggested they take the report and show there lender so they would have an understanding of the actual condition of the property they were lending the money for.

The Lender had no hesitation in withdrawing there offer of finance once they understood the condition of the property

Cost of the IPI Pre-Purchase Inspection $300

Total savings to the client $50,000 in repairs and a lifetime of mortgage debt or possible bankruptcy