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Never buy a ‘pig in a poke’

  • Tags: Property Investment
Strong real estate markets coupled with an inventory shortage have always generated strong “flipping” activity. But while you are “oohing and aahing” over that recently refurbished property make sure your dream home doesn’t turn into a nightmare.

Never buy a 'pig in a poke'There’s an old English colloquialism that refers to “buying a pig in a poke.” This means that something is sold or bought without the buyer knowing its true nature or value, especially when the buyer purchased the item without thoroughly inspecting it beforehand. This is exactly what happens to some buyers when they find themselves in a multiple-offer situation, and they waive the physical inspection to increase their odds of getting the house.  The same thing happens when you're in an Auction situation and you bid without a pest and building report.

Never waive the physical inspection
We are all aware of the risk of termite damage on the Gold Coast but there are quite a few other things that are often covered by a coat of paint. Mold is a classic problem that can be covered by a coat of paint during renovation but eventually it will reappear. Getting rid of it can be a major problem.

We had a rental house with mold in the ceiling of two bedrooms, the only way we stopped it was to seal the house up and run an Ozone production machine for several days. There are bleaches and chemicals that will get rid of it temporarily but short of stripping the walls this is the only permanent way I have found.
You should also be looking for bulging, paintwork this is usually an indication of dampness in the wall. Badly scratched vinyl woodgrain floors usually need to be replaced where the timber floor could be sanded back and re-coated. In an older house low water pressure is often a indicator for bad pipes.

Ask the Agent about defects
Ask the agent selling the property whether he is aware of any defects. Salespeople will sometimes be silent on defects that they are aware of until you ask if the defect is discoverable but if you ask they must always answer you truthfully. Remember though that a sales person may not be aware of defects either. We are not builders.

Furthermore, if the property is a recent remodel, be on high alert for problems lurking beneath that fresh coat of paint.

Don’t buy “a pig in a poke.”

  Never buy a ‘pig in a poke’
palmbeachfn.com.au
First National Palm Beach
15 Palm Beach Ave Palm Beach, Queensland 4221
Phone: 07 5559 9600
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