Electrical faults: Many old houses have problems with their wiring systems. If it’s necessary to rewire the house, you’ll find the cost will eat into your budget and profit line. Not only does rewiring have no visual aspect or wow factor, it is expensive and tenants or prospective buyers expect the electricity to work as a standard, so the fact that the house is newly wired does little to impress them.
Termites: Termite can eat a house from the inside out. Since they are usually eating structural parts of the house, the bill for removal and repair is usually in the thousands. If the house does not come with a clean termite bill, think again.
Structural problems: Major cracks in the foundation of a house are usually the signs of a serious problem. Old houses often have settling problems, but any changes that are less than 10 years old are usually the sign of an unstable house. Rebuilding the foundation will cost you an arm and a leg. The same can be said for fixing any structure that leans more than one degree.
Pipes: Faulty drainage systems and rusty pipes can be a magnet for termites, not to mention that they can cause their own structural damage. Pipes can be ultra expensive to fix, and since buyers or tenants don’t see them, they are a renovation expense that, while necessary, have no value adding benefits.
Extensive mould: Untreated leaks or poor property drainage can result in mould inside the walls. Chances are, if you’re seeing black mould and the house smells musty, there is a major mould or toxic mould problem. There are a number of ways to cover the problem up, but if you’re aiming to renovate to hold, you’ll need to get rid of the problem for good, lest tenants complain. Depending on the damage, this can often be expensive.
With interest rates at their lowest for more than 50 years, there are some great rates available. The best thing to do is to compare rates from all the lenders. Let us help take the leg work out of doing this - Compare Home Loans now
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