How To Inspect The Inside of a Property – Inspecting a Property (Part 4/4)
Articles,  Blog

How To Inspect The Inside of a Property – Inspecting a Property (Part 4/4)


When it comes to inspecting a property, one
of the most important areas that you’re going to expect inspect is the inside of the property. And so in this episode we want us to talk
about how to inspect the inside of a property. And so today I have with me Ben Everingham
from pumped on property. This is a part of the series that we did on
inspecting your property. We have already looked at questions to ask
an agent. We’ve already looked at inspecting the street
as well as the exterior of the property. If you haven’t checked those out yet, go to
on-property dot condo. You for sash inspect and we will list all
the episodes over there so you can check them out. Um, but yeah, in this one we’re talking specifically
about the inside of the property, which you’re going to want to do a thorough inspection
of the inside because most often than not, the agent, we’ll walk you around and he’ll
talk about the benefits or she’ll talk about the benefits of the property. They weren’t talking about the things that
you actually need to know. You always walk through a property. We gave out really dark glasses on, like seeing
everything that’s bad or really, really various of glasses on and the agents going to make
sure that you noticed the rose colored stuff. So this is just again another way of making
sure after the property you’ve got an accurate picture of what it looks like and I, I take
50 odd fridays per property they don’t inspect when I’m doing it for me because I just really
want the non real estate.com version of what’s going on there. And nonprofessional, those that had been like
photoshop, the color, everything like that might guide your eyes, the blue that. So yeah. So there’s a lot of stuff that we’ll be covering
in this video, so we do recommend that you go through with a checklist of your own. Again, the power in this inspection is not
just doing one inspection, but it’s in doing multiple inspections or different properties
and then you can compare each property to each other and this will also help you when
you’re doing it. Multiple inspections to not forget the property,
forget what it’s like, which is definitely an issue. Had you present like that is the biggest issue
that I used to face and then I had to jump on real estate.com in the order again and
just re remember after saying 10, 15 properties in a day. And so the first thing that we want to look
at is does the floorplan work? This is such a video on there’s so many houses
where the floor plans just don’t work. Almost every property that was built again
outside of the last three years had a floor plan that didn’t work in more than 80 percent
of what’s being built now. Ad Doesn’t want to hear. I’ve got investment properties where the floor
plan shocking, but pulling out a couple of walls could dramatically change it and in
fact the house I’ll just fought with my wife like weighed just about the standard right
now on him wherever ripping out some walls that just don’t need to be there and I can’t
believe whatever even put there. Like it just blows my mind. But build used to like pokey little spaces
for some reason. Yeah. And so this is a big one when comparing one
house to another is whether the floor plan works, how livable is a is does it create
a good vibe and a good space for people to live in? Because if you’ve got two houses that are
similar price, similar areas, similar condition, but one has a great yeah, full plan and while it hasn’t terrible one,
unless the terrible one has an opportunity to knock down some walls and turn it into
a great one, I will choose a completely unrenovated property with a great flow plane I’ve ever
really, really nicely renovated property with a shocking one. And the reason I do that is when I was working
for my previous company before I started this business, I was a marketing manager. We did a like basically a research study where
we looked at 2000 Australians, moms and dads and what would the most important parts of
behind for them. And it was the kitchen for the wife and it
was the outside of the property backyard for the man. But what we found from doing that research
was floor plan made everything work. And so when you walk into a place and it feels
right, it’s not because the house is any better than anything else, it’s just the floor plan
actually works and is meaningful and what we’re talking about there is a nice entry
that feels open, are living, dining ALFRESCO backyard that opens out to itself good size
bedrooms that are, you know, well located away from the entertaining area. So people feel like they’ve got privacy, like
it’s very easy to create that sort of floor plan if you know what you’re looking for. Yeah. And also you can look for opportunities in
the floor plan as to where the walls could be removed in order for you to improve that
for planned. So many houses have these pokey little kitchens
or a wall separating the living, dining, kitchen area. Sometimes I bring them up, can make the place
feel infinitely larger. Yeah. They also want to look at what is the flooring
in the living area. Well basically you will go through the whole
house, the kitchen, the living area, the bedrooms, the bathrooms, the laundry, a look at what
forum is in each of them as well as the condition of the flooring. Again, when we talked about the exterior,
we talked about a rating from zero up to five, zero being terrible, five being great. So with all of these sorts of things, you’re
going to want to look at the condition of them as well. So when it comes to flooring in the house,
make sure you check that out. Um, and then we move into the kitchen and
looking at the condition of the kitchen. You were saying in building and pest inspections,
they don’t check the dishwasher, they don’t check, they don’t check it, the dishwasher’s working
that don’t check the water heater check. Generally the air conditioner, they are probably
the three largest maintenance costs on a property outside of a roof that you come up against
regularly. So important I think to just double check
that. And then if you know that the water heater
is about the shoot itself, obviously negotiated a $2,000 discount or $5,000 piece, can’t be
cover the replacement of that in the next couple of years. Yep. So you don’t want to look at the condition
of the kitchen and you’re also gonna want to check if it’s gas or electric and then
check it. The range hood is working. Yeah. Most French words aren’t checked in a building
and pest stay there and that dynamic. Yeah. And so just like check all that stuff in the
kitchen, making sure it’s working. And then obviously take note of things that
aren’t. When it comes to the bedrooms you want to
check like ceiling fans built in robes. But you were saying that the most important
thing is the size of the room. It’s always about the size and the bedroom. And so it’s daddy and they do that time. Definitely the size currently, particularly
in the master bedroom. You want your master bedroom to be a bit larger
than that of the bedrooms in the Bronx. Well we’re talking about here is a master
bedroom. Done it since being at least four by four
meters wide if possible, and then as a minimum for the second two feet bedrooms in the property,
I’m looking for something that’s at least three by three minutes as a minimum. A lot of our properties have smaller bedrooms
because for some reason the mcmansion became something around about [inaudible] 99. He’s in Australia, um, in the case of bedrooms
like is fully better and there’s a minimum size that people should be looking for that. Yeah. And so that size is really three by three
for the smaller bedrooms and full life for, for the master bedroom. Um, and then also you want to be checking
the fans and checking with a condition the built in robes and whatever else is in the
bedroom as well because if you’ve got bedrooms that have no built in robes at all, then that’s
going to be more difficult to rent out. Or you may need to build them. Yeah, like an in. And I think about an owner occupied home with
kids in it and a family. Every room would have built ins. Every room we’d have fans, a home would have
air conditioning days aren’t things that every property comes with. This is an ultimate wishlist, but if you really
want that quality product, there are things you should consider. Yeah, and just sort of thing. Then we move onto the bathrooms and again
we’re looking at how many bathrooms are in the property as well as the condition of those
bathrooms. Bathrooms are huge maintenance issue. What you’re really looking for there and you
can’t do it yourself unless you’re a qualified plumber, but the building and pest inspector
in particular, bathrooms and major, you need to find out if there’s any leaking, if there’s
any moisture behind the walls, if there’s any damage there because that can be a significant
cost. The brie rip out a bathroom, waterproofing
and build a new one. So just check the condition of the bathroom,
check the seals, check the tap, so working, ask if there’s any issues. The building and pest is gonna. Pick it up anyway and then negotiate hard
if there’s a bathroom issue because, and again, and this is all worth, we’re writing this
stuff from zero to five. So rating the experience in the bedroom. Five, five days later, he experiences pain
for a total of. Can I just share a bathroom experience with
you that will be appropriate. We bought this property in a suburb 14 occasion. The city for one of their first clients came. She’s an absolute legend. I think you introduced this to Kim, I’m not
sure. Anyway, she ended up going to buy 600 properties
with us, um, over the period of four years and Kim effectively bought this home, which
we helped her renovate and helped introduce her to the people that could help her renovate. And we’ve gone into the bathroom and we ripped
it out. And as we’ve gone to pull out the shower,
this was a house on stamps in Brisbane that was about 16 years of age. The would pull the chair out and the only
thing underneath the shower was actually the frame and the tiles. The because of the moisture damage in, uh,
in the south Florida and the flooring in a completely rotted all the timber out so that
literally anytime someone was standing in that shell it was the tiles and the frame
of the shallow keeping the person up and it was only because we proved it out that we
actually figured that out. So it looked like an okay bathroom to me on
surface level, like the house needed around it, but you don’t know what’s underneath until
like you really start getting into some of this stuff. Yup. And so as well, things to look at would be
conditions of the walls and roof condition of the paint inside of the house. Again, rating these zero to five, looking
for US specialists in the property, which can obviously
be expensive. Again, this is gone bad video the end of the
day. Is there air conditioning in the property? Does the air conditioning work old? Is the air con as well? It’s something to look at really important. Most air conditioners that you’ll find in
properties that are a little bit older, we’ll probably need to be replaced definitely cleaned. Um, if you don’t turn it on and check it,
you can’t negotiate on that if you need to and what? Well, we’re coming to the end here, but what
could you do cosmetically to improve the inside of the house? And we talked about this in the last video. Looking at the exterior, I absolutely love
this idea that you can think about opportunities in the house and when you’re comparing properties
to each other, if there’s properties with but unity that can be better than properties without
opportunity and there’s two types of properties. Effectively there’s a low maintenance property
that could do with a cosmetic update and actually add value to it. And then there’s just a, you know, low maintenance
property that has already had the update and that looks fantastic. So you’ve got to decide which side of the
fence you sit on. Active investors, probably one day unrenovated
property with potential to renovate it at some point in the future. More passive investors, um, or interstate
investors might just some one time that they don’t have to think about it for five to 10
years. Totally integrated condition and it’s already
been renovated. And they don’t have to do it and they’re happy
to pay a bit more to not have to do that 10. Sometimes you actually don’t pay more for
it. Like it’s crazy dude. Some people just overcapitalizing the market
right now in Brisbane and they were doing the same thing in Sydney when we’re buying
there four years ago. They don’t actually, they’re just completely
under capitalized and then the market doesn’t value what they’ve done or they’re in financial
stress or they’re going through a divorce. And so you can actually sometimes pick up
like renovated properties, you know, below the replacement value of buying a shitbox
and cleaning it up yourself. So it can be both sides, but it’s much harder
to find that than it is to find that unrenovated place that you can add value to. And then the last item on the list was whether
or not you could add a bedroom to the property. And so this was the strategy when you talk
about where you buy like a three bedroom company, but there’s an opportunity to add an extra
bedroom just by putting some walls in 100 percent. Like that’s a great opportunity to manufacturers
some value in a suburb with four or $500. Um, you know, often a lot of those older properties
built 10, 15 years ago had that media room that no one actually uses anymore or that
living room where no one sits anymore and you know, you can put a wall up around some
of those places, still have a great internal floor plan and get an extra bedroom might
cost you, you know, five to 20,000 bucks to do that. But you know, you just have to look at the
sales history in the suburb to say how much more life that is valued by the marketplace
in terms of rent return plus actual capital growth or equity guy. Yup. And so that kind of covers how to inspect
the inside of a property. Obviously there’s a lot of different things
to look through. So you will want to go into that property
with a checklist of your own and just that rating system from zero to five, which random
a lot of losses. But just having that is, is really good. So when you go home and when you’ve been selected
a few properties, you can really look at these and you can say on a scale what the quality
of the property was and this is going to help you remember, hope you compare apples to apples
and how you make ultimately hopefully make the best decision for you to buy the best
property. One hundred percent. Like I know we’ve talked about a lot of different
things, but like if you actually sit down with a pen and chuck this stuff into a spreadsheet
or word document if can become really, really simple and it can just give you a framework
or a process for inspecting properties which 99 percent of people don’t have and that’s
where they come unstuck. And the reason we’ve got this is because I
made so many mistakes myself on my portfolio and I’ve learned so much as a business from
buying so much property in terms of what’s important for tenants that, you know, it’s
just, it’s just worth doing that extra five minutes of work before you go out and check
this stuff out. Yeah. And so that completes this series on how to
inspect a property. We looked at questions to ask the agent, we
looked at inspecting the street and surrounding area. We looked at inspecting the exterior of the
property as well as the interior of the property. You can check it out, all these episodes at
on-property dot com dot EU forward slash inspect so you can go through and that you can become
a master at inspecting properties. This is not to replace building and pest inspections
by any means, but this will hopefully give you a clearer idea of the quality of each
property that you visit, which will help you make a better decision as well. Thanks so much for watching this series. Guys, again, get on property to you for Sacha
inspect to check out the full series. Don’t forget to subscribe to the channel and
until next time, stay positive.

2 Comments

  • i m

    Great video it would have been better if u could visit the place and at same time make video so people could see the place as well . Keep it up

  • Stella Woods

    Great videos – thank you Ryan and Ben! Loved the bedroom jokes and watching Ben trying to keep his face straight for the rest of the video. I'm in the UK and found the idea of a master bedroom measuring 4 x 4 m hilarious. That would be almost a whole ground floor here! lol

Leave a Reply

Your email address will not be published. Required fields are marked *