How To Inspect The Outside of a Property – Inspecting a Property (Part 3/4)

When it comes to inspecting a property, you’re
going to want to have a good look at the outside of the property, what condition it is, what’s
it made of, et Cetera, so that you can get a good idea of whether this is a property
that you’re going to want to invest in. So to have with me, Ben Everingham from pumped
on property and this continues our series on inspecting a property, so if you haven’t
checked out the previous ones we did on questions to ask an agent as well as how to look at
the surrounding street and area. Go to on, forward slash inspect
to see all the episodes that we’ve done there. But in this one we’re going to be looking
specifically at the outside of the property and some of the things that you should look
at. So one of the things that we’re saying off
camera beforehand is there’s a lot of things here that we’re going to touch on and being
able to write these down and go through each of these. When you’re inspecting a lot of properties, it’s very easy to forget which property is
which, which one had the good thing, which I had all of this sort of stuff. What was the condition of the roof? You can’t remember. And so having a notepad, a piece of paper
or having a checklist like this can really help with that. So we’ll go through a bunch of things, grabbing
notepads and pen and write them down and then yeah, it’s going to allow you to look back
and know, forget 100 percent. Like the reason these started was because
when I used to go to make properties for myself, I had 10 properties. Sometimes he’d take properties in a day in
an area that I was looking at and by the end of the day I literally could not remember
one property versus another. And so I built this checklist for myself just
so that I could compare apples with apples really thoroughly when I walked away. And so that I could actually remember what
I was looking at it properly yet. And so the first thing that we had to look
at is how old is the house? How do you find this out? That’s a tough one. Um, you can find it out an rp data, but that’s
a paid source. It’s just sort of like a question to ask the
agent really and take that with a grain of salt as well. Like they could tell you 30 years old, it
could really be 50 or 60 or vice versa. Yeah. And everything that we’re going to be talking
about today as well. None of these are deal breakers. It’s all just so you understand the property
better, you understand its positives as well as this negatives. And as Ben said, you can compare apples to
apples. So the power in doing this is not just doing
it for one property, but the power in it is doing it on multiple properties and then comparing
them to each other as well. Well as comparing their locations and their price
and all of that sort of stuff as well. When you think about it, like if you have
one big day where you inspect 12 properties, that’s cool. But what if you’re in the market for six months
before you find what you want and maybe you find a property that perfectly tco boxes six
weeks ago that you lose, now you’re looking to replicate that property. It’s kind of just keeps a living memory or
a record of what you’re trying to do, what you like about certain places. And what are deal breakers for you are not
deal breakers. Okay. So let’s go through this list. How old is the house? We talked about that. What’s the shape of the land? I like to buy rectangles personally with nice
big frontage is. So that’s just important for me because I
liked it. Also build Julene Cam or granny flats in my
property. So this is especially going to be important
if you are wanting to do the two properties to financial freedom strategy where you want
to build a granny flat. So having the right shape of a blog where
you can build a granny flat on it is going to be important than maybe stumble blocks
where it’s not going to be possible just because of the shape of the blog and the position
of the House on the block position of the house is super important. So we’re looking for something well positioned
at the France so that if you’re not building a granny flat, you’ve got a nice big backyard
for your tenant and family. And if you are, you’ve got space to construct
something. Yeah. And so the next one is what is the frontage
of the property? So this is how wide is the front of the property. So that can range obviously properties range
in width. The wider generally the. Yeah, I defense ladies out never ever watched
videos. A what watches all of that shit with these
important for everyone. But in this instance it’s important particularly
in some of the council areas in southeast Queensland right now because you need a minimum
lot size or width of the front of the property to actually construct a secondary dwelling. So that’s why it’s in this checklist for Brisbane. Yup. And so we actually did a video on what do
we do, what was it called, how to find a property to build a granny flat on. So I’ll leave that in the links down below
if you are interested in building a granny flat. There’s a bunch of other things to check for
as well that we won’t be going through today. I’m still like, I’m still back where we were. That was so funny. I love it. Kills gonna. Edit this and this is it. Um, next question is, is this a corner block? Not a really important thing for me, but more
important to some people. Some people particularly that live to build
granny flats like two separate drivable accesses. I completely get that. It’s not a major priority for me personally. Yeah. So it’s not a deal breaker, but obviously
it can be a good opportunity for Julian come and granny flats if you have a corner block
because you can give access on the other side of the street. Easy to put a fence right down the middle
of the block as well. Very cool. Uh, what’s the approximate width of the site
access? So the side of the house to the fence line,
I like to find that question out again because it can be important if it’s just going to
be a single income home to be able to put drivable side access in a shed, in the backyard
for some people in the future or as a granny flat. It’s nice to know whether you’re going to
just put a path down the side or if you’re going to be able to put drivable side access
in our carport for a granny flat in the backyard. Yeah. So obviously it’d you have a granny flat in
the backyard. You want the person who lives in that granny
flat to be able to get there, but it’s pretty important that they’re not going to jump over
the other house half. So yeah, you generally either looking at pedestrian
access, which means they need to park out the front and then they’ve got a little bit
of a walk to get down or ideally you get drivable access so there’s not enough distance between
the house and the fence line that you can put a driveway in. So the person who lives in the graphite can
actually drive down pat right at the front of their grain flat and then walk in. So that’s ideal. It’s not required, but it is also like I have
lived in a house where I only had been an accident so I’d have to block out the front
and walked down. It was not that big a deal as a renter at
the time and so it’s not. Yeah, it’s not a deal breaker, but it is something
to look for. Look, almost every existing house in Australia
will have a. The pedestrian all drivable side access, but
every brand new Julian coming built now just as pedestrian side access. So if you find the perfect property but it
doesn’t have drivable side access, again, it’s not a deal breaker. People will live there like Ryan and I and
just enjoy and so next one is, is it race or is there a slab on the ground? Why is this important? You know, 70 percent of all these leading. What? Sydney and Melbourne roughly? I don’t know. I just said yes. I’m pretty sure that’s like 60 to 70 percent
of aussies live in those two areas. Spend 80 percent. Eighty percent of statistics are made up on
the spot. I just made some of that up. I’m just thinking. I know had cds of 5 million people. So there’s, there’s a bunch of people live
in Sydney. Just Bang. Gone on another rant. This is like a third video recording because
the day, so like we’re getting sillier and things like this. Sun Is like having roommates to rinse. Tendency to assault. It’s a male. What was the question? Will cause a bad phrase but slab on the. And it’s important to people in Sydney and
Melbourne have slab on ground brick homes because that is all they use the same. Yeah, I completely understand it. There’s a lot about the places in Australia. Once you get past coffs harbor where the design
style completely changes, um, I don’t have a preference for either, but it is a little
bit more expensive, longterm maintenance wise to, you know, paint a house every 10 years
as opposed to break switch chicken. Just acid wash yourself. Yeah. Um, which is the next one, which is what is
the house made of, whether that’d be break, whether it be rendered, cladding, fibro, etc. What you want is a high quality, well made
home what it’s made out to be secondary, unless you want the lowest maintenance property house,
which is generally slab on ground and break with the tod roof. And so it’s not. Again, it’s not a deal breaker. You Want well made house, a brick house that’s
falling apart. It might not be as good as a fibro house that’s
in really great condition. So let me see onsite granola recently when
I was down there with my mates walking past and obviously the acid settled and they have
to literally break out on one on the ground had split into these guys. Drive by was pretty much falling. I’ve run the houses, look like it was ripped
in two and he just got indonesian style, some pieces of bamboo and it was propping it back
up. It’s still completely living in the house
like nothing that’s wrong. So you know there’s flip sides on both flights,
so you want quality house, which is the next one looking at the condition of external construction
material. And so this on here, you’ve got a rating from
zero up to five and so a lot of these are good too when you’re looking at the condition
to rate them from zero being extremely poor granola style house to five being an excellent
condition again, so you can go back and compare apples to apples 100 percent and also as an
investor, the last thing you want is a high maintenance property unless you’re a diy sort
of person or renovating for profit. So a low maintenance property. This just helps you identify, you know, what
you’re going to have to spend in the next 10 years fixing the house up and so you. You could have two properties that are a similar
price in a similar area. That kind of looked the same, but when you
go through this one could be a much poorer condition and the other and you can see that
from your numbers and the scale that you’ve done, so the next one is what’s the roof made
of and what’s the condition of the roof, which is difficult to work it out really difficult. Almost impossible without a building and pest
and mobility and pest inspectors won’t do it either. I really, really tough actually. It’s the hardest thing and probably the biggest
risk with buying a property to the point where I would probably get a roofing dared to go
out and check the condition of the property is part of due diligence before I buy only
because time and time again, I’ve seen what looks like re tiled roofs. Colorbond roads in festus roofs have to be
replaced within three years of buying them and that’s a huge cost. Massive costs. Have you actually done that? Go and someone to come out, a roofing guy
to come out and they get anal as man with this stuff. You know that like. And only because I’ve had properties where
I’ve had everything, it shows now twice and it’s not fun, like it’s actually the opposite
of fun. That’s absolutely the opposite of a combination. You want to look at what accommodation there
is for cars, whether that be carport, whether it’d be garages, how big it is, how many cars
you can fit on there, et cetera. Um, that’s again just to compare to each other. You want the condition of the driveway, conditions
of the garden, condition of the fencing, condition of the gutters and downpipes, um, as well
as the condition of the windows. So again, this is all just to look at what
sort of maintenance is there going to be on the property, what’s the condition compared
to other properties? And I just want you to think about these personally
as an investor for a moment. Thinking about the last 10 properties you’ve
inspected, did you actually think about the driveway when you walked up? Did you think about all the downpipe center
gathers? Did you think about what was the other one? The third one of the fences. Sorry. We face the windows as well. There’s also condition of the paint outside
condition of the steps when you’re looking at all of these things across a heap of properties
over a period of time. We get invested for tay. This enables you to accurately identify where
a particular properties that now might not seem like a big deal if you’ve got a condition
of offense, that driveway and a couple of windows in bad condition, but your tenant,
the first week that they move in is going to identify those things. It’s going to cost you rental yield and it’s
potentially those three things could cost you 10,000 bucks. It’s just important to acknowledge that they
are realistic things that at some point whether you put your head in the sand today like I’ve
done in the past on properties and just waited until they pretty much blew up on me or you’re
more proactive like I now where you just fix those little things as they come up so that
you don’t have this $30,000 renovation to do once every 10 years and it’s not hard to
do this either. It sounds like a lot, but as light on it,
it’s on a spreadsheet or a checklist that you’ve got with you when you’re walking down
driveway, conditioner, driveway. Just write down a number when you’re walking
up the stairs, condition of steps, write down the number of zeroes, horrible. Five’s excellent. And some of this stuff could even be stuff
to go back to. So the condition of the driveway is poor. Like maybe you want to take a photo of it,
but you could just write one or zero and then you know, okay, if I’m actually seriously
thinking about this property, this is something I need to on the second inspection actually
look at in more detail because I don’t pretend to be a building and pest inspector or a town
plan out or any vertical. You know whAt I mean? So this checklist is just for my personal
side of things. Then I go and get my town planning checks,
my building and pest inspections, the roofing do that if I need it. And you know, I’ve seen something there that
might be an issue. I might flag it with them and ask them what
their opinion is and what it would cost to actually fix it and that just gives me peace
of mind. It also gives me negotiating power with the
agent and with the seller to go, hey, well here’s a list of things that I now need to
be maintained or fixed. You can either fix them for me with uncertified,
you know, build up or you can give me a decent price reduction and you can actually negotiate
a cheaper price after you’ve agreed on the price upfront. And so there’s one is there room for a grannY
flat. That’s obviously if you’re doing the two properties
to financial freedom strategy and then I love this question, what could you do cosmetically
to renovate the outside of the house? I love that question because so often we’re
just looking at properties as they are, but as investors we want opportunities and ways
that we can generate extra capital growth or generate extra income and cosmetic renovations
can be a great way to do that. And so to start imagining what this property
could be a love that question, so much of our time of investors and owner occupies is
spent focusing on what is wrong with something as opposed to just going up a level and going,
well, the house across the street’s were 700 k minds were at 620 the I might need to put
$30,000 into it, but I can replicate what’s across the street and that is a huge opportunity. You’ve got to start thinking like that and this is so hard for people to do, to look
at something as it is and imagine what it could be. It does take practice. Both of our wires do this intuitively. It’s just their minds are crazy. they see it as what it is. They look at an empty space or they look at
a derelict space and they can see how good it can be. They know exactly the things to buy to make
it work. I like we were in the office today, we bought
a run for it and just looking at like my wife just knows what to do. She was at target and she found this road
like someone had tucked it away somewhere and I know that this is going to be perfect
for this space and I just look at it and it’s just an empty space, but she sees what it
can be, so it’s an acquired skill that’s more difficult for some than others. Just have a checklist because I don’t have
it, like 90 percent of people can’t say it. It’s a, it’s a gift. Like it’s so how cool is it that our wives
can do that? Yeah, but then it’s also going to be comparing
apples to apples and you’ve got a property where there is cosmetic renovation opportunity
versus one where there isn’t. Then that can allow you to dIfferentiate those
two properties and choose between them because one might have more opportunity than the other
for renovation for capital growth and increasing the rental yield. Yeah. Or you might even find two properties are
the same and it comes down to they subtle differences between them. You pick the low maintenance, high quality
option. Yep. And then the last one is a flat sloping book. How many kandalam spit ’em flat blocks up
benefit longterm capital growth, particularly when they’ve got nice big back yards if you
are buying is sliding block, try and have the slope coming towards the street, as I
said, the building game, which is my background prior to starting this business, pumping shit
up a hill and expensive. So if you ever want to do a granny flat, just
thinking about that for a second life, it doesn’t grab any fade and there’s all sorts
of extra costs associated with building on that. Yeah, so again, not a deal breaker that if
it’s on a sloping block you wouldn’t touch it, but it’s just something to think about. Something that you may incur extra costs as
a result of not having a flat block and if you’re looking at apples with apples
versus apples in a market. Let’s say you’re in sydney for example, and
you’re in the hills district and you’ve got to two properties that you’re considering
both on 600 square meter blocks, both with comparable houses. One of thoSe is on a sloping block and it’s
100,000 dollars cheaper and you go, well, they’re the same. They’re absolutely not the same to an owner
occupier. His kids, again, I play in that yard, so just
put that hat on for a moment and go, you know, what would I like to live? What if I had three kids in this house or
something? Yeah, and so that completes this episode on how
to inspect the outside of a property. We didn’t mention that. Generally you would actually inspect the inside
of a property first and then go around and inspect the outside. So that’s something of note as well. you’re probably not going to be walking around
the exterior before you first do the insIde of the property. we talked about that in terms of the process. In one of the other videos, you’ve really
building rapport with the agent when you first get in, getting them to take you around the
property and show you the benefits while you’re building that rapport. Then doing a good check of the inside of the
property, a good check of the outside, and then a straight check on the way out, and
so we’ve also done episodes on questions to ask the agent as well as looking at the street
and the properties in the next episode will be on inspecting the inside of the property. If you want to check out all these episodes,
go on property dot condo. You fall the sash inspect and we’ll put all
of the episodes over there so you can see all of them and you can become a master at
inspecting property and you’ll know exactly what to look for if you haven’t checked it
out already. We did talk a lot about granny flats and building
granny flats in this one. So check out the two properties to financial
freedom video that mean ben did over on property dot kondo. Four fight five way if you haven’t already. Inspecting your property is good, but getting
your strategy right is even more important than that. So check out that video, see that strategies
for you and until next time, stay positive.

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