Demanding Relationship
Why budget for repairs? Wait till you see the figures, writes Vita Palestrant. Sydney Morning Herald - 13 February 2002
It's surprising how demanding houses can be. No sooner have you taken possession of the house and nervously parted with your last cent than the unexpected occurs: the drain overflows with gunk and termites defiantly its dark nether regions.
No-one ever warns prospective home owners that home maintenance and replacement requires deep pockets of the on-going kind.
Unless you are prepared to do most of the maintenance yourself, to keep even a modest three bedroom brick veneer house in good nick requires $4113 a year, or $79 a week (see accompanying cost guide), according to Cordell Construction Information.
Add that up over the traditional 25-year mortgage term and, voila, you could be forking out a small fortune - $102,831 - that could fund a decent share portfolio or, for the more leisurely types, endless summers.
It comes as a shock to the novice that paying the mortgage is only half the story, says building consultant Jerry Tyrrell of Tyrrel's Property Inspections.
"It's the sleeper in home ownership," he says. "People don't like to spend money on maintenance. But ignoring small repairs can lead to major costs."
There are certain things you have to check no matter what, he says: "Look for anything that may be hazardous: loose hand rails, slippery tile surfaces, pool gate latches and safety switches. They should be attended to as a matter of priority."
Michael Bartlett, national manager of Cordell Building Cost Information Division, says safety and security come first. "Make sure the home is secure," he says. "Changes the locks, look at adding deadlocks and patio bolts to all external doors and window locks as a minimum.
"Check smoke alarms - if none have been fitted then have these installed. Also check the electrical system including all power points, light points and switchboard.
"Check water and sewer systems for leaks. Water and dampness are generally the major source of building problems."
It's what you can't see easily that has the potential to create five-figure mayhem. An annual pest inspection will cost $150 to $200 but can save the destruction of significant parts of the house's structure.
"Concentrate on keeping your house dry, weather-tight and check that you haven't got any leaks in internal plumbing then you can't go too far wrong," says Bartlett.
Tyrrell adds: "The majority of houses will endure a lot more neglect than we think but there are exceptions,"
Unpainted timber on the outside, if neglected, allows water to penetrate and can lead to rotting.
In fact, being handy with a paint brush can save a great fortune. The single biggest cost in professional home maintenance, according to Cordell, is painting - a three-bedroom brick veneer house costs an average $22,380 if done twice in 25 years.
With sums like that, it's worth enduring the odd domestic spat at compulsory paint-ins.
"Many small jobs can be done by the average handyperson but the single largest area where the average person can save a significant amount of money is by doing your own painting," says Bartlett.
Having the kitchen and bathroom professionally renovated is a major expense - an average of $13,352 and $9767 respectively.
The roof is another tricky area as problems can take time to show. Tyrrell recommends you check inside for leaks, mould and damp patches on the ceiling, around the chimney, skylights and joints between the original building and extensions.
From outside check for slipped, eroded or missing tiles, slipped cappings, loose flashings, gaps in chimney mortar, rot to timber edges and plants growing in gutters.
On the roof (with safety harness, please) check cracks in flashing and sealants around pipes, flues, skylights, roof windows and roof vents.
If you can see daylight inside the roof your home is being exposed to the elements.
Ongoing upkeep is demanding and expensive but the alternative is worse.
"When your property starts falling apart is really starts to work against you," says Bartlett. "You could be looking at serious capital loss. Taken to its logical conclusion the property that sells for land value is the ultimate cost you pay for neglect. You need to be vigilant and make sure the little jobs get done."