[00:00:00] Speaker A: The best music from the 60s to today.
IPL radio.
[00:00:06] Speaker B: All right. Right, we're back on the air again with the Property Bros with Carlos and Josh and.
[00:00:12] Speaker C: Yes, Carlos and Josh. Thank you.
[00:00:14] Speaker B: I almost tripped you up.
[00:00:16] Speaker C: I was about to follow you then.
[00:00:17] Speaker B: Ah, yeah, I know, I know. I'll trip you up there. So anyway, how are you, man? How are you going?
[00:00:21] Speaker C: I'm good. You're running late, obviously, Josh.
[00:00:24] Speaker B: I was running late. Oh, wow, look at how he turns the table.
I've got a photo here that says you're stuck in traffic with all the kids in front of you.
All right. Anyway, how's things?
[00:00:37] Speaker C: How have you been? Good, Josh. How are you, mate?
[00:00:39] Speaker B: Good, good. How have you.
[00:00:41] Speaker C: We hear that we're accept. Getting some offers. Accepted, are you?
[00:00:44] Speaker B: We have. So it's a good week this week. I had one offer accepted last week. Two this week, actually. Two just today. One just as I was driving in. So was amazing. One. So. Yeah, very.
[00:00:56] Speaker C: Some of these tricky clients.
[00:00:58] Speaker B: Some were tricky clients, but I'm glad that we got it over the line and we are able to get them something.
[00:01:04] Speaker C: But based on our discussions in the last few weeks, it's been a case. It's been a matter of educating, isn't it?
[00:01:09] Speaker B: Yeah.
[00:01:10] Speaker C: Educating these people as to where the market is, what the new expectations are for buyers and sellers and waiting around, sort of hoping, shopping or trying to, you know, just put the asking price off for Ian is not going to cut it.
[00:01:28] Speaker B: It's not going to cut it. I think. I think that's where you're, you know, you're getting the buyer's agent or the sales agent, you know, is to try and help you and guide you do that. Right. Make the right decision.
We are kind of guiding you to say, all right, I think this offer will stack up or, you know, this offer will stack up because of this. Or this is what we should do. That's what you're paying for the advice and stuff, you know, so that's where it kind of comes down to.
So if you come and say, okay, I think we're going to put in an offer on a million dollars for this property. Josh. What about 950? I was like, no, I've given you.
Because of, you know, we are comparing it to what the reason sales are. This is what I think the property would be. And you've got a million people walking through that property. There's no way we are going to get it for just under.
[00:02:15] Speaker C: That's right. And time is of the essence. Time is abating. 950, the next person's already put, you know, early ones.
[00:02:23] Speaker B: And funny enough, we had this one of the contracts that went under offer. We were actually outbid.
We were outbid by quite a bit. But the only difference was theirs was subject to the sale of their property.
[00:02:36] Speaker C: Okay.
[00:02:37] Speaker B: And ours was not. Obviously.
[00:02:38] Speaker C: Okay.
[00:02:39] Speaker B: So, you know, obviously time is of the essence in that kind of case.
[00:02:42] Speaker C: Buy ready. We've talked about this as well. You can't be doing subject sales at the moment. Go back five, six years. Awesome. No problem. Correct. Happy to accept that. Most selling agents would accept them. But at the moment, subject sales, no.
[00:02:56] Speaker B: But that also paints a picture. Right. Like, you see, they've put a higher bid because it's subject to sale.
So it also shows that, you know, people are wanting to sell, but they need to know where to buy.
It's very hard to sell something not knowing where to buy.
[00:03:13] Speaker C: Oh, there's been that gap since post Covid. There's been that gap.
[00:03:17] Speaker B: Yeah. So I feel it's a little bit more rampant at the moment in the sense that that's why you see not a lot of properties on the market.
You know, people are wanting to sell, but they don't know where they're going to go. Again, you know, we always talk about stocks. You know, there's limited stock. So like, what happened with this client of ours?
Obviously, you know, they've outbid by a lot, apparently. You know, there's a lot. It's like, Josh, what's your best? Not. We're sticking with our offer. This is. This is what we're going to stick with. But also with that being said, you know, but that's also talking to the agent, getting to know, understanding the client circumstance, knowing that the seller wanted a quick sale, they needed to sell by a certain date.
[00:04:01] Speaker C: Yeah.
[00:04:02] Speaker B: Now, straight away, that for whatever reason, but that already straight away tells me that they're definitely not going to go with the other offer because the subject.
[00:04:10] Speaker C: Sales are quite complicated.
You just don't know how long the fees of string is. You don't know what sort of property it is, what sort of market it's sitting in.
You can't just say across the board. All market, the market is hot across the board.
Different areas of Perth perform differently, especially at the moment. So you could be committing to something that could take months, months and months, where, you know, for a smaller amount, you've got settlement within 28 days, 35 days, whatever it be.
[00:04:39] Speaker B: Yeah.
[00:04:40] Speaker C: So could be very careful with those sub sales.
[00:04:43] Speaker B: We have to. That's why it's very good to, you know, work closely with the sales agent so that, you know, we can kind of do it well. So I've got like two clients come. Well, two leads came up recently and they are, we are in discussions at the moment of where are they going to buy, how is it possible, is their budget makes sense and if it does, I'm going to bring you in to come and see how we can sell their property and how we can kind of work together to make that happen.
[00:05:08] Speaker C: Of course, you know, you and I are the dream team, Carlos and Josh.
[00:05:13] Speaker B: When I meet the client tomorrow, it'll be Josh and Carlos.
Yeah, so yeah, no, it was good. And on the other, the other one, the other one was a little bit more on the other, other extreme. So we had, the sellers are based in Adelaide, so they've got a property here and they wanted it sold for close to 7 or 700k. Yeah, the property is not worth 700k.
They did not do anything to it whatsoever. There was a property just on the opposite side, far better presented and all that went for 6, 4, 5.
And they reckon their property is 700k.
[00:05:52] Speaker C: And I was like, they could be looking at market data. If you're in Adelaide, they could be looking at market data that, you know, doesn't make sense.
You got to take this stuff with a grain of salt. You really needed a good agent to come in and give you an opinion.
[00:06:05] Speaker B: So again, the agent, the agent was scratching his head like, josh, I don't think I can get this sold because the seller's expectation is way out there right now. We pulled up all the properties. I was at the house, the home open, and we pulled up the property that actually sold for 725. Brand new property, brand spanking new or everything was shiny, you know, all, well paint.
It was, it's chalk and cheese. Yeah, right. So we said, this is not a $700,000 property.
So anyway, I wrote up, there's a thing, you know, I think a lot of people make the mistake as well when you, when you're going to buy a property. It's not just, here's my offer, this is my deposit done. You need to paint a bit of a picture as well. You know, that's one I remember. I wrote, I wrote a little bit saying, oh, you know, this is my client, he's a single mom, you know, she really needs a place to stay and stuff like that, you know, that kind of thing. So you kind of appeal to their emotional side as well.
If that makes sense. So I'm giving you a lot of tricks here, Carlos. Don't use it against me next time.
[00:07:08] Speaker C: I was just kind of saying I actually don't. That stuff doesn't work on me very much.
The stories and whatever. I'm actually looking for the best circumstances for my seller, you know. So when you're going back to the sub sale issue, I was just thinking, you know, if there was a sub sale on the table, it would have to be that unicorn price or some sort of an amazing proposition for us to pass up cash offers or people that are pre approved, that sort of thing.
But I try not to be emotional at all with stories. You know, even in rental, we used to have the rentals, same sort of thing, the letters used to come in.
We have to look at the facts first. Look at the facts and figures and see if they stack up first.
I mean, with so many people, I've got the market. There's going to be a good story behind every potential purchase.
Got to be discerning.
[00:07:58] Speaker B: Not all agents are going to fall for it, obviously, but you can only try.
But no, it was good. Like this one. I actually, well, obviously not the emotional side, but I actually outlaid everything. Like this property sold for this, this property that you won 700,000 on.
Look at this and look at what.
[00:08:15] Speaker C: You know what, if you, if you write that to me, I'm thinking, oh, this guy's being smarty pants.
[00:08:19] Speaker B: I have. Yeah, yeah. Seriously, if it's, if it's unreasonable, I think it's better to, you know, I'm pointing out why I'm putting this price on and why it's justified.
[00:08:28] Speaker C: Fair enough.
[00:08:29] Speaker B: And if I'm saying the property that went just across the road was on the market for 100 days and this is what it sold for, why do you think yours is very special? I mean, I'm not saying it in.
[00:08:38] Speaker C: Those words, you know, that we provide feedback to our sellers based on what people? Some people don't tell us very much. Other people, you have to sort of track them down after the home opens, after they've been through, asking their opinions. What do you think? What would you pay? Why wouldn't you pay X amount? So what you're talking about, there is actually really good feedback that, you know, any good selling agent would pass straight back on to their sellers to say, hey, look, just so you know, because you don't know what conversations are being had in the background, there could be an unreasonable seller and there could be a reasonable agent, but say it's the instructions coming to price it high, sell it high. You know, just wait until they get that. That price.
But in the meantime, we're seeing buyers go out the door.
So that is good feedback. Yeah, it depends on how it's written, Josh.
[00:09:23] Speaker B: So I've got it.
[00:09:24] Speaker C: Send me something that you would write and I'll give you an opinion, my own personal opinion.
[00:09:28] Speaker B: I got it in text here saying, josh, that's well written. Thank you. So, really, there you go.
[00:09:33] Speaker C: Were you talking to Chat jp Tag?
Because Chat JP taking me very supportive.
[00:09:39] Speaker B: We have best friends, man.
[00:09:40] Speaker C: But.
[00:09:42] Speaker B: But now I'm just glad that we got it over the line. And it was good because I was working with the selling agent. Obviously, he wasn't sure whether he was ever going to sell that, and I've got a buyer ready to go. So we were. Obviously, it was good for both of us. So it was good that we were in constant chat and we were seeing how we could get this over the line.
[00:10:00] Speaker C: That's good.
[00:10:01] Speaker B: And we managed to get it over the line. And I was like, bro, sign the contract. Let them sign it now before they change their mind.
And he was like, josh, my blood pressure is through the roof.
But I said, he's been working on.
[00:10:13] Speaker C: It for a while, huh?
[00:10:14] Speaker B: Oh, he has. He's like, josh, I think I can take the whole week off now, you know, because that's how much he did. He was actually on the phone for about an hour with. With the couple in Adelaide trying to get. Trying to get it over the line. So now it was good. I said, you know what? I'll. I'll take you out for a beer just to thank you. You know, I think we did well for both our clients.
[00:10:32] Speaker C: That's really good. It is part of the game, getting stuck with tricky clients sometimes. We've had a couple of shows about that sort of thing, you know.
You know, it poses the question whether we should even take them on in the first place. If our values don't align or if the expectations are way too unreasonable, should we take them on? I mean, we're in the business of selling property. You're in the business of buying property.
We want to get the deals done.
Some clients can take a lot of extra energy.
You know, maybe it's not up to us to educate them. I'm not sure it can get to the point where it gets to too much sometimes.
[00:11:07] Speaker B: Oh, you get like. Sometimes it's really hard to say until you actually sign them on.
Then you just. The cards just suddenly flip and you're like, oh my God, like, what did I sign up to? But, but you still do the best you can, you know, you do the best you can. You still do the best you can. Like these clients that we just got that settled on. Oh my God, they were so amazing. They were so, they were very supportive as well throughout the whole process. It's like, oh my God, Josh, you're, you're sending in things that we were never thought about, you know, but that's the thing. That's the education process. You're trying to give them as much information to make the best possible decision on the property that they're going to buy.
[00:11:45] Speaker C: You're very good at that. I always tell people, when I'm referring to you, I, you know, tell them that you're very good at the research and you're very diligent with that process.
[00:11:53] Speaker B: Thank you.
[00:11:54] Speaker C: So don't cry, Josh.
[00:11:58] Speaker B: You don't get this often from cars.
[00:12:03] Speaker C: No, it's true. Well, we need, I need to be able to send people to, to you if, if they, they can't find something. You know, the other. Just yesterday I was having another conversation when you know, they're talking about missing out properties on the market.
And I said, mate, look, by the time it gets to the market, I guarantee you one thing, it's been through all of the agents, contacts.
[00:12:24] Speaker B: Yeah.
[00:12:24] Speaker C: Honestly, because that's what we do when there's a listing coming up. We start telling our best interest investors, our best clients, the, the people we know that are looking to buy.
And if it's gone through all of them and they still don't want to buy it, you know, we'll pull it out to our friends and family maybe, and then it gets onto the market finally.
So you need to get ahead of that game. You need to try and get that off market purchase.
[00:12:48] Speaker B: Yep.
[00:12:49] Speaker C: Because you're not going to get the place you really want otherwise.
[00:12:54] Speaker B: Yeah, exactly.
[00:12:55] Speaker C: Get ahead of the game. That's what I was saying. You need somebody like Josh to actually do the research for you and find it before he gets to the market. I said to them, you actually need to get to these people before they've even decided they're going to list on the market for sale.
[00:13:07] Speaker B: Correct.
[00:13:07] Speaker C: You need someone like Josh to go up to them and say, hey, I've got a buyer, genuine buyer, and he wants to buy this house. Oh, I was thinking of selling, I thought, thinking of getting around to selling before. It's been through the whole process of all of the agents contact list and then finally to the open market and.
[00:13:23] Speaker B: The marketing and stuff. Yeah, true, true.
[00:13:26] Speaker C: Yeah, it's true.
[00:13:28] Speaker B: So, so what's happening in your space there, Carlos?
[00:13:32] Speaker C: We've got a pretty exciting guest coming on. I'm actually looking forward to seeing him.
[00:13:37] Speaker B: I think we had some really good ones, isn't it? So last week we had the valuer, Keith Perry and we talked all about valuation. He was amazing on the show. And today we're going back to building.
[00:13:47] Speaker C: Inspector, another building inspector. So last time we heard Paul Cable from Broad Broad Building Inspections, looking beyond the decor.
[00:13:54] Speaker B: Yes.
[00:13:55] Speaker C: Had a one to one with Paul the other day. He's the loveliest man.
So knowledgeable. He's a registered builder, he's on the board of Inspect wa.
And today we have Raymond Dupre.
[00:14:07] Speaker B: Yep.
[00:14:07] Speaker C: He comes to the game with a whole different offering. You know, he's got a great level of service.
He's.
He gets great feedback across the board. Wherever I speak about this man or hear back about him, great feedback about his service and I can't wait to hear his experiences.
[00:14:25] Speaker B: That'd be amazing. It'd be a good talk. I think there's a few things that we would like to bring up as well to see, you know, how what investors should look at and you know, we get a lot of reports as well, is that what's, what should we really be concerned about and what is something that we can like, you know, we can weigh it out and whether we should be discussing it with the building inspectors per se as well. Because obviously a lot of things are in there. There's a lot of maintenance as well. So I think there's a few parts to the reports, isn't it?
So be good to pick his brain and see where we go.
[00:14:59] Speaker C: Yeah, I really want to pick his brain. Especially about the conflict issues when there's two building inspectors that have a conflicting opinion about something being a major structural or minor structural defect, you know, and they, when they incorrectly sometimes classify what those things are. Because for us as selling agents, it makes a big difference when our contracts are subject to, you know, structural loan. Let's say there could be all the maintenance in the world, but if there's a structural issue or major structure we either have to remedy or the whole sale could fall over.
[00:15:31] Speaker B: Yeah, definitely.
[00:15:32] Speaker C: So. So I'm very keen to ask him those questions and how he handles that sort of thing. But. But yeah, no, Raymond Dupree is going to be here about 4:00'.
[00:15:39] Speaker B: Clock.
[00:15:39] Speaker C: 4:30.
[00:15:40] Speaker B: Yep, 4:30.
[00:15:41] Speaker C: And he's probably stuck in the same traffic.
[00:15:46] Speaker B: All right. How about we go into a little bit of a break and then we'll come back into it. Yeah.
[00:15:49] Speaker C: With Carlos and Josh on the first property race.
[00:15:54] Speaker A: The best music from the 60s to today, IPL radio.
[00:16:00] Speaker B: Look at that, you're back on the Perth Property Bros with Josh and Carlos.
[00:16:06] Speaker C: I'll tell you what I wish we were broadcasting the things that we talk about when we're off here.
[00:16:10] Speaker B: Yes.
[00:16:11] Speaker C: Whether it's just you and us bantering or it's the guys that, that are visiting here. Generally our visitors relax during the night and we keep going on some good topics.
[00:16:20] Speaker B: Yeah, yeah, no, it is Carlos.
[00:16:25] Speaker C: Yes, yes, yes, Josh.
[00:16:28] Speaker B: A few things that obviously, you know. Carlos, you're from WA Property sales.
What are some of the projects you're working on at the moment?
[00:16:37] Speaker C: Projects? Well, it looks like we're getting a few sales coming up but you know about the commercial work I'm doing, the land sales I'm working on but preparing a property for sale in Southern river in Alkamos and Eglinton.
[00:16:50] Speaker B: So I'm going to be everywhere, man.
[00:16:52] Speaker C: I'm going to be spread thin the next next couple of months. Yeah, but they're good saleable properties, you know, targeted to the. Your mum and dad.
[00:17:00] Speaker B: Yeah.
[00:17:01] Speaker C: Or your, or your investor. So yeah, it should be, it should be a good couple of sales.
[00:17:06] Speaker A: Yeah.
[00:17:07] Speaker B: That's amazing.
[00:17:08] Speaker C: What about yourself, mate?
[00:17:10] Speaker B: I'm just happy I've got three clients under contract at the moment.
[00:17:14] Speaker C: So I was only just thinking, you know, you don't have to carry stock, you need to do the research.
[00:17:18] Speaker B: Just research. Yeah, I don't do stock. That's why a lot of people is like, oh, Josh, do you have an office? I said no, I don't need an office because I don't need people rocking up to see what I sell or what because I'm not, you know, the kind of thing, I don't need to sell a product, it's just more managing the clients. So my offices are usually, you know, in cafes with a good view, with a nice coffee.
[00:17:38] Speaker C: It's the best way to do it to me. Have you done any work up on the north? On the far north up in Yan Chip? I've been alive, I've gone up. Have you been up there lately?
[00:17:47] Speaker B: Last two years ago, I've been up there. Not very recent.
[00:17:52] Speaker C: I've seen the new train station up there.
[00:17:53] Speaker B: I saw it on pictures, it looks amazing.
[00:17:56] Speaker C: Yeah, the train station, really worth going for a drive up there just to get a sense of the new streets, all the new suburbs they're building. It's all changing so much.
[00:18:06] Speaker B: I went as far as Butler. I was visiting a friend and remember we were talking about Butler and how much it's changed and how close it was. Was to the beach and how amazing the views were.
[00:18:16] Speaker C: Yeah. I've got a very good friend up in Bala. We were doing a. A rental. Sorry, a sales appraisal. What? Mid 23.
Mid 2023.
What was it? I was struggling to try to get over 400 for this place based on comparable size. See, the wave hadn't reached Butler yet.
That property has almost doubled. Where are we?
Mid 25. In two years, it's all almost doubled. But she's doing that flick. She's really happy.
[00:18:42] Speaker B: Yeah.
[00:18:43] Speaker C: You know, but it just goes to show where the demand is and where it's pushing the incredible amount of development going on. That's why I encourage you to get up to Butler, get up to Clarkson Alkamos, Eglinton, have a look at what's going on, because it's certainly where the population seems to be moving.
[00:19:04] Speaker B: Look, as long as the client say, josh, I want buy in Eglinton, I'm up there.
I've had a few clients once buying Morley. Man, I'm so intimate with Morley right now.
I can tell you what the street is, what, how much they are worth, what they will rent out for.
That's how we build our. What do you call it?
[00:19:27] Speaker C: You know, your knowledge.
[00:19:29] Speaker B: Yeah, you know.
[00:19:30] Speaker C: Well, you know, we've got that one at Mount Hawthorne coming up, the one that I showed you a couple of weeks ago. That's. That looks like a really good house.
It's an old one owned by an Italian family through generations. But it looks like it's going to be. It's. It's really just land value in terms of. Of demand.
[00:19:48] Speaker B: Yeah, but.
[00:19:48] Speaker C: But another good one.
[00:19:50] Speaker B: No, that's good. I think there's lots of good properties popping up at the moment. Very nice.
Good locations as well. But with that being said, you know, like how we brought up last week about the REWA stats. You'll be interesting to see what happens this week.
[00:20:03] Speaker C: Well, I had a chat about the REWA stats at bni. That's why I looked at you and I. I know.
[00:20:08] Speaker B: I saw that.
I was like, damn it, how dare you?
[00:20:16] Speaker C: So, Median house price Perth 780,000 in May, which is incredible. And as we were talking about it leads to business the other day, we're over the million. Denmark, in terms of the. The national average, what is the median national average over the mill.
[00:20:32] Speaker B: Yep. So, yeah, we, we're still stuck at the 780, which is good. Right.
Remember how we were talking about stock on market? So we started off, when I first mentioned it was about 2800, then it became 2, 500 last week, remember this week, 2481.
[00:20:50] Speaker C: We're still dropping.
[00:20:50] Speaker B: So we are dropping.
Same with the units as well. That's, that's properly listed for sale.
[00:20:57] Speaker C: Yeah. So last week we've been talking about this for months. Oh, yeah, we're expecting this, this first wave to clear the stock of market and if the interest rates keep dropping and we're going to have people listing again, so we're going to have a second run at it, you know, that just if it runs the same trend as the last one, you know, we should go for another 12 months on.
[00:21:17] Speaker B: But that's the funny thing and that's the. And what we were trying to mention earlier about, you know, the selling to buy, which is why it's. There's not a lot of stock. Things are starting to come down as much as, you know, as what it is today. If this trend keeps going, it will still keep. You'll start coming down to 2,000 again.
[00:21:38] Speaker C: Yeah.
[00:21:38] Speaker B: Now there's only what, 4,000 properties this last week as of last week. And the amount of property sold, if you. It's also gone down. So it's about 660 units. About 169. Land, however, has come up.
So land has gone from 76 to 105.
[00:21:57] Speaker C: Yeah.
Even the building reps I'm dealing with at the land estate there, they're quite interested in what we've got to offer. You know, even, you know, some of the lots that are a bit more expensive, you know, in times past they wouldn't have gone anywhere near that sort of money. They're interested and they're even considering putting display homes on them.
[00:22:17] Speaker B: So it's funny how like land is coming up but that also shows with investors because obviously there's not a lot of stock on the market. Right. So a lot of people are starting to go towards land because obviously they can build.
They know that they can build. It's there and yeah, they've got. They know that there's something to go to instead of just fighting with everyone on the market. Yeah, eventually.
Eventually.
[00:22:40] Speaker C: If you're lucky, 18 months. If you're unlucky. I've come across a few unfortunate people that. Four years waiting for turnkey still, you know, and that's been multiple in the last 12 months. That I've come across some in the three year mark but you know, I think terrible to be in the four year mark waiting for turnkey.
So eventually, and hopefully it's not going to cost you too much more.
[00:23:01] Speaker B: But look, I think people are going into it because what do you say is desperation?
[00:23:08] Speaker C: Desperation, fear of missing out.
Absolute need.
Yeah, I mean look, we all need to live somewhere.
[00:23:15] Speaker B: Yeah.
[00:23:15] Speaker C: It's been so much population growth, a lot of people coming over from internationally and interstate, but it's displaced Perth.
It really has. I mean prices didn't move for what post 2013, they just sort of plateaued.
Nobody was really coming over here and nothing was really happening. And all of a sudden, you know, everybody needs somewhere to live.
There's a shortage.
[00:23:42] Speaker B: Yeah, yeah, 100%. There's. It's funny, last year I think sometime in June I had a conversation. No, not even last year was the year before that. So anyway, I had a conversation with somebody who wanted buy a property in Piara Waters. Oh yeah, Pia Waters obviously is a big. You've sold a property there as well and you know it's very expensive now because of the schools and all that, isn't it? So now this, that property, they had a very decent budget, about 1.2 mil.
But according to him, he could not buy anything.
[00:24:15] Speaker C: Wow.
[00:24:17] Speaker B: All right.
[00:24:18] Speaker C: Two million meal in Harris.
[00:24:19] Speaker B: In Waters, Harrisdale. And he could not buy anything. You know, and there was the time when we were having a chat and we were talking about buyers, agents and stuff like that. So now I followed up with him obviously after a few months later I followed up with him and guess what, he's. He bought a land in his building.
[00:24:36] Speaker C: Okay.
[00:24:37] Speaker B: And some people just sort of sick.
[00:24:39] Speaker C: Of waiting for the right thing to come up.
[00:24:41] Speaker B: But again, that's when the market was going crazy. You're to going grading about 30, 40, 50 people in line and you're competing with all that people to purchase that property.
[00:24:50] Speaker C: Well, as long as you've got the horsepower to see yourself through the build process, you know, it's generally okay. It is a bit longer than most other states. But if you can see yourself through it, building your own place, your way, you know, off the shelf, there's a better way to go.
[00:25:08] Speaker B: And that's the thing, right? You don't have to worry too much about selling your property quickly before you need to buy the next one.
[00:25:14] Speaker C: That's what I mean.
You can see it through. If you've got family you can stay with, you've got a lease arrangement you can lock in Whatever other alternative accommodation you can secure, if you can do that, it is the better way to go, in my opinion, you know, albeit it's more expensive. It used to be cheaper to build, you know, historically, not.
[00:25:33] Speaker B: Not anymore.
[00:25:35] Speaker C: Yeah.
[00:25:36] Speaker B: I think this is a conversation that I was having with another client of mine as well who wanted to subdivide and you know, subdivision.
[00:25:43] Speaker C: Subdivide. Residential block.
[00:25:45] Speaker B: Residential block, yeah. So I think it was a zone for R40, so that's about 220. So you could put easily about three or four properties on there, which makes sense. You can put three or four properties, you can make something out of it. But you know, I mean, it's just two properties. Sometimes you really have to do the math. Is it add up? Because obviously, you know, you're selling it at a premium on the market.
[00:26:09] Speaker C: Exactly.
[00:26:10] Speaker B: And then you have to do your subdivisions, then you have to do your, you know, you actually build. If it's a retain and build as what we spoke with Kit, you know, it makes a lot more sense. But if you have to knock down and then rebuild both, that's still a lot of money as well. So a lot of thing goes into it. You really have to do your feasibility, make sure that it all stacks up before you actually get it.
[00:26:31] Speaker C: Sometimes these deals, Josh, they're not for now, they're for the medium term. It's a medium term holding. We get that with. With larger plots of land, 100 acres plus sometimes you can subdivide them. We've got a couple of subdivisions we're working on as well.
They were not feasible going back when I started working on 20, 23.
There were a medium term holding. Now all of a sudden, lands become hot potato. And it's feasible now. It adds up now.
[00:26:57] Speaker B: Yep, you know. Yeah, exactly.
[00:26:59] Speaker C: But you have to wait. You have to be in it to win it and you'll wait and see when the market turns.
[00:27:03] Speaker B: But that's the thing, right? It's a very.
Is it going to happen? Is it not? It's a bit of a gamble, all right.
[00:27:11] Speaker C: You don't know. But you've got to be in it to win it, Josh.
Especially when it comes to land.
You won't go wrong, though.
I mean, we were talking the other day, I jumped in at B9, told everybody what we spoke about. The median house price being 7:80 in Perth, just over the million mark nationally.
This is growth that should have happened over the years. That didn't. We're sort of catching up.
Our price is now catching up to where it should have been. It was steadily increasing and so it's just a bit shocking to people at the clients that we've discussed off the break.
These people have, you know, they're born and raised in Perth. They're used to the low prices, you know, they're not used to having lived, say over east and seen enormous prices coming here to what seemed quite cheap to them.
It was this. What this was the market, it was, was absolutely everything they knew and to be chasing offers over 900 or over a million for places they saw in the market for 200,000 a few years ago is nonsensical to them.
[00:28:20] Speaker B: Yeah, 100%.
[00:28:22] Speaker C: So it's a bit of a shock that the market is where it is, but it's probably where it should have been all along if it had grown with the rest of the country.
[00:28:32] Speaker B: It's funny how we needed something big like Covid to actually show the country like, hey, Perth is here, we are ready to play.
Yeah.
[00:28:41] Speaker C: The problem is people don't have any, anywhere to live now because they've come over from over east.
[00:28:46] Speaker B: Yeah, true.
[00:28:47] Speaker C: Well, I think, I suppose you could live regionally. Plenty of room out there.
[00:28:50] Speaker B: You could. I mean this, there is still options, obviously, you know, it's. There's still options to suit your budget, but you also have to be flexible. You can't just say, this is what I got, this is where I want to live. It's like, well, it's not going to happen.
[00:29:01] Speaker C: Look, everybody sort of sticks to the Perth area. But I was talking to a very good friend of mine over the weekend specifically about job opportunities out the regional areas and they're there if you want to work, you know, there will be accommodation options because they need people to work at.
You know, when you get heading to the north or the south, there's options and we've got, we've got. This is an enormous state, John.
[00:29:24] Speaker B: Yeah, definitely.
So, Carlos, tell us about your development that you have happening up in Halina Valley and how if anyone's interested, they can.
[00:29:34] Speaker C: It's just an interesting little project that we're working on there because it's stage one's already sold, they're already all gone. But we've set up a bit of a tree change marketing promotion behind this sort of thing.
Historically, the owner had dealt with some agents that were sort of overcome, complicated the process in my view and it was very difficult to find any sort of advertising for this property.
It was kind of being advertised inside another website. You had to sort of go through this website Looking at all these other land estates, looking for this one. Looking for, you know, I'm talking about stage one here. And I've come along and said, well look, let's streamline this process and let's create this, this tree change concept where if we're trying to pull people over from the coast, from the north coast. So from, from Eglinton, Alkamos, looking at options up there, you know where you've got lots at 220 square meters, let's offer them a lot that's double the size. The base of the hills, you know, it is, it is beautiful country out there. Bush forever everywhere. I don't know if you've ever been down the zigzag just next to Kalamanda, there's.
[00:30:44] Speaker B: Yeah, I've been there.
[00:30:44] Speaker C: Beautiful drive. That's all of Perth.
All of the, all of those suburbs heading towards Perth. It's just such a beautiful spot.
So let's offer a tree change. This was the, this has been the concept. Let's offer more land which the lots are. What are they? 388 to 572.
[00:31:03] Speaker B: That's good size. It's very decent.
[00:31:05] Speaker C: Yeah, it's a decent size and straight. Streamline the marketing. So we actually give them all the information immediately.
So if you go to the. So I see you bringing up the website there. If you go to mytreechange.net au this is what we're putting up on the big billboard with my big mug on it. Is it all the signs.
It takes us straight there. There it is. Instantly to the, to the ad.
[00:31:30] Speaker B: Yeah, nice.
[00:31:31] Speaker C: There's our video, there's our lots, there's all the photos.
[00:31:35] Speaker B: Is it the one you took with your own drone? Did you.
[00:31:37] Speaker C: Well, I had to, Josh.
The commercial drone pilots were having trouble flying in the area because it's, it's cross. It's relatively close to the crosswind Runway. Perth Perth Airport.
[00:31:48] Speaker B: Yeah, so.
[00:31:51] Speaker C: But I've got a remote pilot's license. I was able to use my drone, my 249 gram drone to get up there and take the shots. Yeah, but it's at the base of the hill, just a little bit of town and Midland has a lot to offer. Josh. I don't know if you sell Midland to your clients, but all the services are there. When you drive around, you might as well be driving around Aussie park.
Everything you need. And you're relatively close to the airport as well.
[00:32:16] Speaker B: Yeah, well, yes and no. There's.
I avoid.
I'm giving out some trade secrets here.
[00:32:25] Speaker C: But I think you had too many.
[00:32:27] Speaker B: So. So obviously I don't know if you know, they're going, there's going to be a third Runway.
The third Runway is going to be somewhere here.
[00:32:34] Speaker C: Yeah.
[00:32:34] Speaker B: Right.
And this Runway here is going to be taken off.
[00:32:38] Speaker C: Yeah, that's the crosswind.
[00:32:39] Speaker B: The crosswind Runway is gone, which is.
[00:32:42] Speaker C: Currently the one pointing towards exactly where.
[00:32:45] Speaker B: So actually Helena Valley will make a very good investment.
[00:32:48] Speaker C: Yeah.
[00:32:49] Speaker B: Because that's going to go. That's why Red Cliff and all that is all Belmont and all are doing really well now because this is going to go and that all the noise and all that is gone.
[00:32:59] Speaker C: Yeah. There's big changes coming to Redcliffe area. Major redevelopment.
We've come across clients looking at, at getting some medium to long term land holdings in Redcliffe because of a proposed buyback scheme.
[00:33:13] Speaker B: Yep.
[00:33:15] Speaker C: Massive government buyback scheme on in the suburb. They want to redevelop, build up the whole.
[00:33:19] Speaker B: That's why it's very hard to get someone to sell in that property in that area.
I've actually gone, there's an agent that I work with over there as well whose door knocked every single one. None of them want to let go because of that, which is quite interesting. So anyway, we're talking about the third Runway here. The one here that kind of comes up and then it goes off here into Midland. So Midland's the first one to hit.
[00:33:42] Speaker C: Yeah. That crosswind Runway that currently points towards the Helen Valley. It's rarely used.
[00:33:48] Speaker B: It's used. You see it during the day mostly for the FIFO workers, you know, when it goes into the Calgary mines and all that. So they take off mostly in the mornings and I think in the evenings, if I'm not mistaken.
[00:34:02] Speaker C: Yeah. It just depends on wind direction.
Your primary runways are what they need to extend.
[00:34:11] Speaker B: Exactly.
[00:34:11] Speaker C: So it's a good area. If you poke around those, those suburbs there, Guildford, up to, up to the hills. It's just a, just a really good spot to be raising a family.
[00:34:23] Speaker B: Is this the whole area here?
[00:34:26] Speaker C: Sorry?
[00:34:26] Speaker B: Is this the whole area here? This the one that you're selling the land?
[00:34:30] Speaker C: Let's have a look there.
Where are you, Josh?
[00:34:33] Speaker B: So this is the address that you've put in.
[00:34:35] Speaker C: Oh yeah, that's it. That's it, yeah.
[00:34:36] Speaker B: Yeah.
[00:34:37] Speaker C: So stage one was over there to the, to the left. Kujong.
[00:34:40] Speaker B: Yeah.
[00:34:41] Speaker C: Up to Mindolini there and then Taliska.
[00:34:44] Speaker B: Yeah.
[00:34:45] Speaker C: Stage two, there's also another road going there. Stage three is coming down the track as well.
[00:34:50] Speaker B: It's got a bus station.
Yeah. No, I think that's a very good spot. So anyone's thinking of looking at Helena Valley, please? Definitely get in touch with Carlos Garcia from WA Properties.
[00:35:02] Speaker C: Yeah, some very good parks around the area as well. We went for a bit of a wander when I was doing the listing and some of the drone work. It's very impressed. It was. It's just a place that you feel you can really relax.
The Bushmead Estate. Have you been out to the Bushmead Estate, Josh?
[00:35:17] Speaker B: No, I will.
[00:35:18] Speaker C: If you zoom out a little bit, it's a little bit to the south here, underneath this Bush Forever site. That's the Bushmeat Estate there.
[00:35:25] Speaker B: This one? Yeah.
[00:35:25] Speaker C: Further down as well.
[00:35:28] Speaker B: Yeah. I mean, it's close to the freeway. It's.
[00:35:30] Speaker C: This is the bush. Look at all the services.
[00:35:31] Speaker B: This is the commercial area. Yeah. And obviously it's close to Swan Valley and stuff, so, yeah, it's always a plus.
[00:35:38] Speaker C: So, you know, projects like this are fantastic. When I pick up the ball from another agent that, you know, I don't want to say they're doing the wrong things, just they do things differently. And I come. Come in again to do things differently again. And my forte is.
Is identifying weaknesses.
You know, in my view, this property was too hidden.
And when we're dealing with investors from over east or. Or out of area, they need to get a very good sense.
[00:36:06] Speaker B: Yeah.
[00:36:06] Speaker C: Of what the area has to offer if they're going to build something. Do you know that photo? That photo.
[00:36:10] Speaker B: You took the photo of the ducks.
[00:36:11] Speaker C: As well, to line up. There's about six ducks there, all lined up. And I said, right, oh, ducks, let's line up.
And they listened.
[00:36:21] Speaker B: All right, so now that's good. I think now we are both working together. Try and get some developers there, isn't it, to get some display homes and stuff.
[00:36:33] Speaker C: Yeah. And part of the marketing process has been to contact all the building reps and all the major builders. So as soon as this property went live, I was. I was already contacting 52. They all got the contact, the information, the developers guidelines, all of the plans and the price guides.
They went right out. And now we're expanding that with. With more of the reps and people like. Like your contacts and Carly's contacts from bni.
[00:37:00] Speaker B: Oh, well, that's good. Like you also mentioned you already had a few sales and lots of inquiries, so it's going.
[00:37:05] Speaker C: Doing really well.
[00:37:06] Speaker B: Yeah, that's good. All right, you're back with the Perth property Bros. With Carlos and Josh. That's Josh and Carlos.
[00:37:15] Speaker C: It's starting to catch on finally. Finally.
[00:37:20] Speaker B: Anyway.
[00:37:21] Speaker C: So what would you have done? Josh? If. You know, if you're running late in traffic again?
[00:37:26] Speaker B: I don't know. I'm always here on time.
[00:37:27] Speaker C: Man.
[00:37:28] Speaker B: You tell me.
It's not the first time.
[00:37:31] Speaker C: Practice coming on by yourself. When. When I'm running late.
[00:37:34] Speaker B: Yeah. I need to. Yeah. 100.
[00:37:36] Speaker C: So I mean Darren's doing a show. Show now or Talking Talk on Sundays?
[00:37:40] Speaker B: Yes.
[00:37:41] Speaker C: It's a tough gig. But he's actually asked me to interview him. He wants me to interview him on his own show.
[00:37:45] Speaker B: There you go.
[00:37:46] Speaker C: Just to get a bit of information out to people about why he's the man when it comes to talking talk.
[00:37:51] Speaker B: Nice.
And when is that?
[00:37:54] Speaker C: So Darren's show is on Sunday afternoons at 3pm he's got the 3 to 6 lot on Sundays.
So we'll probably end up doing it in a fortnight's time because I've. I'll be working at the Rotary Market this weekend and the following weekend we'll come in and give them an interview and.
[00:38:10] Speaker B: Nice.
[00:38:11] Speaker C: See what Darren's all about. But he's been on our show. We were talking Melbourne property.
[00:38:14] Speaker B: Yes.
[00:38:15] Speaker C: Mixed reviews on the show.
He. He did very well. I thought. You know, it's a big change. Big change for him coming over from. From Melbourne. So. And I'm just glad that he's got the.
Got the show up and running.
[00:38:30] Speaker B: That's good. I think it was a great run. And we are looking forward to ours. Isn't it?
[00:38:35] Speaker C: Sorry?
[00:38:35] Speaker B: We're looking forward to our guests. Raymond Dupree.
[00:38:38] Speaker C: Well, you shouldn't be too much longer now.
[00:38:40] Speaker B: Yeah. So we're going to be talking about all about building and pest inspections.
Any stories you want to share about building in pests? What's. What's building in pest?
[00:38:49] Speaker C: Man. I'll just tell you. It doesn't matter. The contract. I'm just looking for that one main thing in the report. I mean our contracts are built to be structural only. You know, I don't muck people around. And when buyer's agents come along, you know, I don't sort of appease them too much on the issue. We really want the contracts to be structural only. We don't want to be subject to that little crack being repaired. You know, that little scuff mark on the wall being fixed. You know, if the place is genuinely structurally defective. There's a serious structural issue. Yeah. We'll fix it.
We'll fix it. Or you got the opportunity to let. To exit the contract. You know, if it's too complex.
But that's what I'm looking for. And I'm looking for a building inspector that actually can highlight that issue relatively quickly.
One of my comments, because the building inspectors, they always ask for feedback.
Poor Cable, Raymond Dupree, Frankie as well. And then there was Brian Collins as well. And you know, I was telling them all, as agents, we don't want to go through 15 to 35 pages of data looking for the one specific thing that we need to know. Is it structurally sound? That needs to be number one.
Raymond was very good at actually taking that on board. He writes an email so that tells people like before they even opened the report. The email says structurally sound or and it says yes or no. And it's got a couple of other points there about smoke alarms and RCDs and main findings, which is really again, as agents we want to know because this is a critical junction in our sales process where the property might fall over.
[00:40:36] Speaker B: Correct.
And I've provided a counter argument to that which is we buyers agent want to know what's. Everything's wrong with it.
[00:40:45] Speaker C: That's okay, you can know all you like. But yeah, the tricky thing you can contract is very complicated.
[00:40:50] Speaker B: Josh, I'll be very frank. Like Carlos, a lot of things that may come out as major structural, even minor structural can cost a lot for the buyer. You know, there's one I think, remember we had a chat where there the roof was, was caving in a little. But that doesn't come as major structural. That's a full on 60,000 or 40 to 60,000 for the buyer.
[00:41:13] Speaker C: You know, it becomes a discussion point for, you know, fair and reasonable disclosures.
You know, we're not trying to, you never want to surprise people with big things especially like that because we spoke about that too. When Carly Beasley was, was on from Alpha Conveyancing, we spoke about that.
You can't get out of that contract. It's going to cost you 20, 30, $40,000 to remedy on a minor structural issue. But you can't exit because it's again going back to how the contracts were built.
[00:41:44] Speaker B: Major structural look to be frank, I think those contracts are built purely to represent the sellers.
[00:41:49] Speaker C: That's right.
[00:41:50] Speaker B: And simple. So but that's the thing. So while we work under rewards annexure. So again it's nothing for the buyer in that that's why we buyers, agents have to be creative to find ways to try and you know, to also mitigate that risk for the buyer.
[00:42:06] Speaker C: Josh, I mean nobody's trying to do the wrong thing here. I mean, this, this stuff is covered under consumer law.
I mean, there is the reasonable expectation that, that the property is in good working order, you know, that you can, that the items are expected to be, be in reasonable condition, reasonably clean, you know, even if the contract doesn't stipulate it, it's expected that, you know, it's reasonably in good order.
So yeah, I mean, this isn't, I mean, I joke about being structural only and it is something that we look forward to.
Look forward to on these reports to make sure that these things are covered. But yeah, that's what, when we go to our REWA training, some of the things that they emphasize that, you know, people are covered by consumer law, you know, you can't just give them property that doesn't work at all. When, you know, any reasonable person could have seen an ad and thought, okay, based on the representation of these photos and the copy, this property is actually generally in good condition.
And all of a sudden, you know, you get to settlement and say, well, you know, nothing works, everything's falling apart, nothing's got a warranty, everything is just, you know, in tatters.
It just doesn't work that way. You know, there is a reasonable expectation there. You know, and agents do get taken to the cleaners at times. You know, these matters can get escalated through the licensing authorities to the point where rectifications are made, you know, at the agent express or the sellers expense or both.
So you really need to be doing the right thing by people. That's the whole point. No surprises, nothing scary, you know, reasonable disclosures, especially in the contracts, to say, to the best of my knowledge, based on everything that I know as an agent and the best of the seller's knowledge, this is the condition of the property, everything's in good condition. You're not going to get any surprises. And if there is, we're going to work through them in good faith. I think that's the support people want other than to think, oh, well, your problem now, you signed the contract, oh, well, your problem, no, we don't want to do that to people. You don't want to know people that are in that situation. You don't want to hear about that sort of thing, but you do.
[00:44:16] Speaker B: Yeah, that's good. So it'd be good to also see what Raymond has to say about it, what he's come across. It'd be quite interesting to see the different cases that he's dealt with.
So, yeah, no, that would be an interesting one. So building and Pests.
[00:44:32] Speaker C: Building and pest. You know, an interesting one I dealt with.
Part of our learning in our job. We're learning, we're learning every single sale, there's always gonna be something. An interesting one was, was when I sold the property in Brentwood. Did you ever have anything to do with that property I sold?
[00:44:47] Speaker B: Yeah, I went through it.
[00:44:48] Speaker C: You went through it?
[00:44:49] Speaker B: Yeah, I went through that one. Yeah.
[00:44:50] Speaker C: So that property actually had original. Originally it had a tile roof, right. And then when we got to it.
[00:44:58] Speaker B: It had a tin roof, a tin.
[00:45:00] Speaker C: Roof or aluminium or steel, whatever. It wasn't a tile roof anymore. And when we headed. So when we got to the structural inspection stage, the, the building inspector said, well, this roof needs to be strapped down.
Because when the, when the roof was changed over, you know, it was built in a way that the, that the weight of the tiles were holding the roof.
[00:45:22] Speaker B: Yeah, yeah, yeah, yeah, I remember that one. Yes, you mentioned.
[00:45:26] Speaker C: So, you know, no weight, just. Just, just a steel roof now, in a big storm, in a decent gas, that room could just fly off, just fly off like a kite.
So, you know, there's the expectation that that needed to be strapped down.
[00:45:42] Speaker B: Yeah, that was an interesting one actually.
[00:45:43] Speaker C: Yeah. So it's just like this. Yeah, it's, it's obvious when you think about it, you know, but you don't think that, you know, the weight of the roof has so much to do with how it's engineered in the first place.
[00:45:54] Speaker B: But you know, funny enough, after you've mentioned that case, right, nowadays when I actually go into older housing and I see an old house and I see a tin roof, right, I immediately say, do you really? Yeah, yeah. I'm not even joking. I was like, has this been strapped down? Is the first question I asked. And they were like, I don't know.
[00:46:10] Speaker C: Yes. As well, is that the building inspector is going to ping you.
[00:46:13] Speaker B: I'll be like, from my experience, this is not good.
[00:46:17] Speaker C: See what I mean? There's always learning.
[00:46:19] Speaker B: Oh, yeah, 100% that one was just one.
[00:46:22] Speaker C: I thought that. Yeah, it would have been pretty obvious too, but. Yeah, yeah, yeah. If it wasn't spelled out to me, I would have made the connection.
[00:46:28] Speaker B: No, but that's the thing. It's. Once, you know, it's too light. Yeah, it's too light, but it's strapped down.
[00:46:35] Speaker C: It's.
[00:46:35] Speaker B: Once you've mentioned that now it's like the, that's the thing that you see, you know, when you go into everything, which is really great.
Anyway, tell us. So now that you've Done. You've also worked over on the east side. Tell us a little bit about building and pest inspection over there. How is it different to what's happening in wa?
[00:46:52] Speaker C: Well look, it's generally pest and building and inspections are generally the same in terms of the mechanics.
Contracts are created subject to these. These things being in reasonable condition at a certain condition at a certain standard.
And because we're dealing with contract law, whether it's different between states on how they're executed before or after the process over east of course we have an exchange process with contracts where two solicitors or two sides will like literally and physically exchange a front page of a contract. Assign front page of the contract, they pass it to each other when they're ready to exchange. That's effectively what our offer and acceptance is.
But those contracts are going to be subject to conditions, subject to A, B, C, D, one of those best in building. Something's only pest, some is only building. It really depends on what the circumstances are for the buyer and the seller.
But my understanding now Raymond's going to clarify this for us is that we've got an Australian code, Australian building code that keeps changing and being updated every year with new builds and new materials and how they affect, you know.
[00:48:03] Speaker B: Is that the one. Paul's on the committee, isn't it?
[00:48:06] Speaker C: Yes and it's got lots of numbers in it and dots in them so we'll clarify that one. But yeah, so different regulations would apply to different states and the mechanics of these building inspection. But there is a uni. I think there's a universal Australian standard. The AS. That's the one. The Australian according to AS 33.2 2.316 and you know, I'm sure Raymond and Paul know these, know these codes off my heart.
[00:48:38] Speaker B: Yeah.
[00:48:38] Speaker C: At the back of their hand and even Paul Cable and I joke about going on, on tick tock and watching the tick tocking inspector. Have you come across.
[00:48:46] Speaker B: Yes, I have.
[00:48:47] Speaker C: Like people have flown him from Melbourne to Perth to do inspections and the guy is so thorough.
[00:48:55] Speaker B: Yeah.
[00:48:55] Speaker C: You know he, he pings so many builders I think because there's a lot of I think should be right builders over east. It's got to do with density and whatever their backgrounds are.
He exposes them for the quality and the shonky sort of work that they do. Wow.
Yeah. Paul and I talk about that, that guy being flown over here for all expenses paid, business class top accommodation, plus the exorbitant fee for him to produce these reports.
I think Paul Cable was talking about Having had a copy of the report or something like this thick.
[00:49:30] Speaker B: Wow.
[00:49:31] Speaker C: Where he goes just top to bottom, in and out, everything, you know.
[00:49:34] Speaker B: Now we've got to check out if Raymond is something like that going on for you.
[00:49:38] Speaker C: I want to actually, I want to ask Raymond about this, this tick tock inspector and what he thinks.
I think that's going to be really cool.
[00:49:44] Speaker B: Yeah.
[00:49:45] Speaker C: He's making waves by exposing shonky builders.
[00:49:48] Speaker B: Yeah.
[00:49:49] Speaker C: I mean when you buy a house, you're expecting in good faith this house is going to be in impeccable condition.
Everything's going to work. You've got your, your, your insurance warranties, you know that, that go through for several years into the future after you've got purchased.
[00:50:03] Speaker B: It's funny that you say that like, you know, I was looking for a few houses in Belga, Westminster. Obviously there's lots of building going on in those areas, isn't it? And a lot of it are mom and dad investors. Some are owner builders and stuff. And it's funny how you can tell the difference straight away when it's done by a really good building by a builder or not.
And that's the thought process of it. Like for example, there was one where I went and to open the door and he knocked into the glass panel on the other side.
[00:50:35] Speaker C: Oh yeah, that's poor planning.
[00:50:36] Speaker B: Oh, very poor. And you know, the way you open the door, like the laundry was done in a way where the cupboard would bang into the door so you can't actually physically open it. There's another one where the kitchen where the door would hit into the oven. So it's so you know straight away.
[00:50:49] Speaker C: Online pictures where you see that the engineering of doors. Yeah, yeah, exactly. Just missing the toilet or.
[00:50:56] Speaker B: And you can tell, you can tell straight away that you know, not a lot of thought has gone into it.
[00:51:01] Speaker C: The house that Jack built, that's what we call those. The house that Jack.
[00:51:06] Speaker B: Really. Oh, okay.
[00:51:07] Speaker C: The ones that she'll be right, you know, put together like, you know, nobody put too much sword into them. But yeah, you know, the good builders, especially the big builds have a certain standard.
[00:51:17] Speaker B: Well they have to like, like what Paul was sharing that builders are now hiring building and pest inspectors to inspect the their builds throughout so that you know, it keeps them accountable as well. Which is a good thing.
[00:51:30] Speaker C: Exactly.
[00:51:31] Speaker B: I feel like instead of, I think there's a good initiative to take, you know, to make sure that everyone is up to standard, that you know, the building is, you know, it's harder to rip the whole thing down, then might as well adjust it along the way.
[00:51:44] Speaker C: I know.
[00:51:45] Speaker B: You know, so I think that's very good that builders are doing that as well as buyers, and I think buyers just shouldn't take it for granted. As well they should. It's a big investment. If you're going to spend 500,000 half a mil on a bill, why not pay a little bit just to make sure that it's built right so they don't have all these issues in the future.
[00:52:06] Speaker C: It's not just built right, though, mate. Have you come across settling issues, like, major settling issues?
I've seen places where it's built on unstable ground or old landfills, and the movement in these properties is just literally tearing them apart.
You know, who's responsible, who's to blame? Is it the council for granting the approvals? Is it the builders for, you know, how they did their slabs and their work and it just causes so much havoc.
[00:52:37] Speaker B: Oh, yeah.
[00:52:37] Speaker C: And I remember so much to it. Oh, yeah. I'd hate to be in the building. I mean, we carry enough liabilities as it is, as licensed agents, like you and I are, but builders. Yeah. Yeah.
[00:52:49] Speaker B: I remember when a colleague of mine was obviously, well, they didn't build, they bought a property. But it was missed by the. Unfortunately, that was missed by the building inspection. And in fact, it came up with some plumbing issues that turned out to be some major plumbing issues.
[00:53:08] Speaker C: It's the difference between $200 and, you know, 20,000.
[00:53:11] Speaker B: Oh, yeah. And it became a whole big thing. Then again, it comes down to the, you know, the whole emotion behind it, or not the money. And, you know, like, I bought a house, but it's dud, you know, that kind of thing.
[00:53:21] Speaker C: A lemon?
[00:53:22] Speaker B: A lemon, yeah. So it's very important, I guess, to do it, you know, and you're not just buying, you know, what you getting into, even though it's meant to say major structural. Even knowing all the things that, you know, maintenance or what might or might not come up. A lot of the reports that I read will tell.
[00:53:38] Speaker C: Well, that's where a good inspector like Raymond Dupree and Paul Cable, they will, you know, Frankie Carroll, they will actually create these reports that are very thorough for people's. FYI, about the state of the property they're buying. Even if they're new, you know, there's. There's going to be things there that they need to know about.
And that's the important thing that they've got that. That list.
They've got that list of items that they're Going to have to take care of. Like for example, you know, Raymond actually was talking to one of our clients down in Lakelands and he was advising them about ground maintenance. You know, that the ground is your bathroom. You're supposed to redo over the years.
[00:54:23] Speaker B: As part of your general maintenance, the regrouping.
[00:54:25] Speaker C: Yeah, yeah. There's a certain level of moisture that you know, is tolerable, acceptable within a wall because it's a wet area when you're dealing with showers. Also, he was, you know, talking about where the location of the shower is. If it's a, an internal wall as opposed to an external wall, it backs onto and the levels of moisture.
But the, the fact that the, the grout has to be redone every. I think he said two or five years. I'll ask him later.
[00:54:53] Speaker B: I think it's every five years.
[00:54:54] Speaker C: Yeah. Isn't that interesting? I mean, I would have thought you just, you grouted and it's done, you know, for 10, 15 years, 20 years, and then you regret it when it's gone yellow. No, it's a matter of maintenance. It actually goes down in the, in the building reports. It comes down in the maintenance section.
[00:55:09] Speaker B: Yeah.
[00:55:09] Speaker C: As in suggested or required maintenance.
And I thought, you know, that's, that's incredible. But it's very detailed, Raymond. And that's the feedback that I've gotten from him about him and his business, his reports. You know, it goes a long way to let people know what is wrong with the property.
[00:55:25] Speaker B: Yeah.
[00:55:25] Speaker C: You know, so in a new build, he might put that advice in there, talking about, you know, this needs to be re grounded every five years. Put it in your plan, you know.
[00:55:34] Speaker B: Yeah, no, that's good. That's good advice. So anyway, we're looking forward to getting Raymond in.
[00:55:39] Speaker C: So we're going to be coming very shortly, so go to a quick break.
[00:55:44] Speaker B: Yeah, let's go into a bit of a break and we'll bring Raymond in, shall we?
[00:55:47] Speaker C: Good man.
[00:55:48] Speaker B: All right. You're listening to the Perth Property bows.
[00:55:50] Speaker C: With Carlos and Josh.
[00:55:51] Speaker B: Nah, it's Josh and Carlos, man. Look, I'm gonna play this song for you. Take it easy, bro.
[00:55:57] Speaker A: The best music from the 60s to today.
IPL radio.
[00:56:03] Speaker C: And we're back with the Perth Property Bros, Carlos and Josh. And our very special guest, Raymond Dupree from Jim's building. Welcome, man.
[00:56:08] Speaker A: Thank you.
[00:56:09] Speaker C: We've been talking about you. We're looking forward to this episode and here you are.
[00:56:12] Speaker A: Yeah, no, it's. It's a privilege to be here. So thank you guys for Having me on and yeah, hopefully I can answer some questions and yeah.
[00:56:19] Speaker C: Oh, we have very specific questions about the Australian standard. Okay. And what all those numbers mean.
[00:56:27] Speaker B: Yeah, Carlos is all geared up for that. So.
[00:56:29] Speaker C: Yeah.
[00:56:31] Speaker B: All right, well, anyway, let's start with the first introduction. Right, Raymond. So, Raymond Dupree, residential and commercial building inspector from Jim's Building Inspection, Southern River. Known for his ability to bridge communication gaps between sellers, buyers, agents and inspectors. Raymond bring clarity to an often confusing stage of the building process.
His goal, helping people truly understand what's their building inspection, what's in their building inspection report and how it fits within the obligations of a sale contract.
Now again, we just mentioned off air, isn't it? There's going to be very different in terms of what selling agent expect and what a buyer's agent expect in a building inspection.
[00:57:14] Speaker C: I had to rein both of these guys in during the, the break because they're talking, they've bring up some awesome points. I'm like, wait, wait, wait, wait till you go on. Yeah, people want to hear these things. So now you have to have the whole conversation again.
[00:57:25] Speaker B: We will, we will, we will. Yeah, no problem. We will do that again.
[00:57:29] Speaker A: I think Josh and I are on the same side here, cuz we're always pro buyer rather than pro seller.
[00:57:34] Speaker C: Here we go, here we go. We're happy to.
[00:57:37] Speaker B: Yes. Finally.
[00:57:39] Speaker C: What do you mean finally? It was with Ben Jenkin. You ganged up on me.
[00:57:44] Speaker B: Little Ben to come on again. Oh good.
[00:57:47] Speaker C: He tried to call me before.
[00:57:48] Speaker B: Maybe I should have Ben and Raymond all on at the same time.
[00:57:52] Speaker A: Anyway, supposed to be recommended.
[00:57:53] Speaker B: No, it'd be good actually. We have the whole team on here to see.
[00:57:57] Speaker C: We fixed him last week though. Had the valuer and it was a my size.
[00:58:01] Speaker B: Oh yeah, that was weird. I was like, damn, what the hell?
[00:58:04] Speaker C: He had. He almost had a fat lip, this guy.
He was sulking, I tell you what.
[00:58:10] Speaker A: Yeah, that's funny.
[00:58:11] Speaker B: All right, Raymond. Tell us a little bit about yourself, Raymond, in what you do, why you do what you do, man.
[00:58:17] Speaker A: Yeah, so essentially I come from an engineering background, so I spent a lot of time sort of designing mechanical, civil, that sort of stuff and then pretty much decided to make a change. Always wanted to have my own business and that sort of stuff.
[00:58:31] Speaker B: So.
[00:58:32] Speaker A: Spent about two years, two and a half years going through the rigorous process of becoming a building inspector and then building up my business and that sort of stuff. And yeah, love it, love everything. Property, enjoy investing and that sort of stuff as well. So anything to do with property, I Love doing and I think sort of. Yeah. Having that engineering background sort of equipped me with the, I guess, fundamentals to start doing it. But it's like anything, once you started, there's still plenty much of learning that will happen every single day, every single year sort of thing.
[00:59:02] Speaker C: So.
[00:59:03] Speaker B: So you cover quite a bit though. Yeah. So it's not just building inspection, this pest inspection. Obviously you do the construction, new builds, obviously. PCIs.
[00:59:13] Speaker A: Yeah, yeah.
[00:59:13] Speaker B: Practical completion inspection there.
[00:59:15] Speaker C: Is that what that means?
[00:59:16] Speaker B: Yes, that's what it means.
[00:59:18] Speaker A: That is the one.
[00:59:20] Speaker C: Pci.
[00:59:21] Speaker B: Pci.
[00:59:22] Speaker C: Practical completion Inspect.
[00:59:23] Speaker B: Yeah, yeah.
[00:59:24] Speaker A: So, yeah, so we do sort of new construction inspections pre purchase. So your standard sort of building and pest inspection.
We also asbestos inspectors, we do methamphetamine inspections and that sort of thing.
[00:59:37] Speaker C: That's an interesting process, isn't it?
You have to do the, the testing and then it has to go away to a lab.
[00:59:43] Speaker A: Yeah. So there's different stages of it. So you can do sort of a on site testing and that sort of stuff to tell you whether or not it's indication above a contaminated level or not, what the contamination is. You send off to a lab and that sort of stuff. But it can give you an initial reading and that sort of thing.
[00:59:59] Speaker C: Because sometimes when there has been a meth lab or major activity. So this all attaches to the walls, all the chemicals attach the walls and then people will go through and paint just to give it a slap, a bit of paint over. But this comes through, doesn't it? It reacts with paint and comes right through.
[01:00:14] Speaker A: Yeah.
[01:00:14] Speaker C: So what are they looking for, Raymond? What would that look, look like, mate?
[01:00:18] Speaker A: I don't think that there's any sort of specific visual signs or anything that you can. Apart from, from the obvious, like if you're going to walk in and you can see that it's definitely been sort of a meth lab with, you know, paraphilia and that sort of stuff laying around. But apart from that, if it's, if it's been painted and that sort of stuff, it's unlikely that you'll visually see that there was anything there.
[01:00:37] Speaker C: So I had, I did one once, mate. It was incredible. When I first saw this property, there was satanic circles on the walls. One room was paint was. It looked like it was painted blackwood. It wasn't. It was. There was a fire in that room.
There was cooking gear on the, on the kitchen bench. There was holes in walls where people sort of walked through. There was graffiti on every wall. It was a nightmare. And to how we got it, you know, in the end, the renovation, the tiling, the painting, you would have never have imagined that this was a math lab, you know, because it was. It had been vacant for many years and people found it empty and snuck in and started cooking there.
But nobody. I don't even show you the photos. You wouldn't believe the before and afters of this property.
[01:01:20] Speaker A: Because the thing is, with that, like, the remediation process gets quite intense. I mean, you got to remove ceilings, insulation, like air conditioning.
[01:01:30] Speaker C: It was a gutting. Yeah, it was a gutting.
[01:01:32] Speaker B: So that was what I was going to ask. So it's a proper gutting of the whole place up, pretty much. So you can't just slope paint on there and it's done. No, but say if they were to pop paint on, the buyer buys it and, you know, they get the property and then later find out it used to be a matlab. What. What happens then?
[01:01:51] Speaker A: I don't know, to be honest.
I guess it comes down to that duty of care that sort of everyone lives by.
I suppose if you know that the tenants were sort of, I don't know, doing sort of dodgy stuff or anything like that, you could disclose it. But I don't think there's anything that sort of covers buyers in that aspect. Because if you don't know, you don't know.
[01:02:12] Speaker B: It's the same cover bias. I'd like to hear that.
[01:02:15] Speaker C: Yeah. So, I mean, it's.
[01:02:18] Speaker A: You don't know. So if you don't know, then you can't sort of comment on that. So, yeah, I'm not sure what happens when. When they find out later on.
[01:02:25] Speaker C: Yeah. But, you know, we're assuming, say, you know, mum, dad moved in and they've got a little baby. What are we talking about here? Here, Raymond, when you're dealing with these sort of inspections, what sort of things are we. If you're identifying whether there's been a meth lab, what are we protecting them against?
[01:02:41] Speaker A: Sort of the contaminated level. So anything that's considered, I think it's 0.05 microns or something like that is considered a contamination level and it can be unsafe. It doesn't necessarily mean when you walk into the building and you're just there, that it is unsafe. But to touch it and that sort of stuff, especially to sort of immunocompromised people, so elderly or young kids and that sort of stuff, it can become harmful. But I guess it's not such a common thing that you would say to every client, hey, you should get this done as part of your sort of due diligence and that sort of stuff.
[01:03:14] Speaker C: It's a whole separate inspection, isn't it?
[01:03:16] Speaker A: Correct, yeah. And I mean, my advice would be that if you've got a gut feeling that, you know, it's in maybe a lower socioeconomic area or something like that, that, that you consider doing something like that if you don't have any history of the tenants and that sort of stuff, maybe consider something like that, that sort of stuff. But yeah, it's very rare that we come across it being unsafe unless it's obviously been an area where they've actually manufactured it and that sort of stuff.
[01:03:44] Speaker B: So is it very involved the process to identify?
[01:03:49] Speaker A: So the initial inspection is quite simple.
So you basically get these specified test kits. You'll go out and you'll section it off. So you'll pick sort of designated areas, you'd group them. So do all the bedrooms together, you'll do the wet areas as one and then the living room, dining room, that sort of thing. And it's not going to specifically say to you that, hey, the kitchen is contaminated because you'll take it sample from the kitchen, living room and the dining and it'll just tell you that those areas, one of them is contaminated and it's above or below the acceptable level.
And then you can sort of go step beyond and test each room and then you can go step beyond where you actually take a swab and send it off to the lab and they can give you definitive or quantitative sort of indication of how bad it is and that sort of thing. And then based on that, they will sort of come up with a remediation plan as to strip the walls or it's safe enough to just clean or, or whatever else the case may be.
[01:04:49] Speaker B: Interesting. So I guess my question would be what? How often do you find these sort of cases?
[01:04:56] Speaker C: It's very rare.
[01:04:57] Speaker A: Yeah, I'd say it's very rare. I'd say one in one in thousand.
[01:05:01] Speaker C: But at least it's a service available. Yeah, that's what I like about it. When I started hearing, hearing more and more about this, this, this service, I thought, well, this is really good. It's off the shelf. Is this a gyms thing or is this a building inspector sort of thing?
[01:05:14] Speaker A: I think certain companies have, have adopted it, others don't. I think it comes down to preference and that sort of stuff.
[01:05:19] Speaker C: So we've got structural inspection, pest and bill. So building, sorry, the pest inspection component, we've got meth, asbestos. Asbestos. You've Got moisture?
[01:05:31] Speaker A: Yeah. So we do sort of like the new construction ones as well, which would be slab plate height, roof inspection, looking at the grade. Yeah, we'll cover it all. Like you got to look at sort of everything and, and then obviously there's specialist inspections as well. If you've got a specific concern at your property and that sort of thing, it can be a defined scope of it. And then we actually, we work with quantity surveyors as well to do depreciation surveys, schedules of course, and that sort of thing, because you can do a physical inspection for that. So I think Jim's vision for all their franchisees is just to sort of be that one stop shop and.
[01:06:10] Speaker C: Yeah, of course, yeah. And they do very well. They do, they've got a very good network.
So if you're dealing with a, a new build inspection, you're not just reporting on maintenance upcoming. Are you looking at whether the builder has installed everything to the, to the manufacturer's specifications?
[01:06:29] Speaker A: Correct? Yeah.
[01:06:30] Speaker C: Specifically. Is that the purpose of the report?
[01:06:32] Speaker A: Yeah. And I think that's sort of where the bridge between buying a property and building a property the confusion comes from.
Because if you're wrong with it and.
[01:06:44] Speaker C: Was it built right, is that the two big differences?
[01:06:47] Speaker A: I think so, yeah. So I mean if you're building a property, we want to check for workmanship, compliance, substandard works, etc. And everything will be measured either against the engineering drawings, the specified contract or the Australian Standards, National Construction Code, whatever else.
[01:07:05] Speaker C: There's a lot of them, isn't there?
[01:07:06] Speaker A: So everything is sort of covered in there and you go through everything very sort of rigorously. Whereas a pre purchase building inspection you're looking for structural defects and that sort of stuff. So it doesn't necessarily fall under the umbrella of compliance and that sort of stuff. And I think that that's one component where there's sort of a gray area and varying opinions from different inspectors and that sort of stuff. And I'm not saying one's necessarily right and one's wrong, but because there's levels.
[01:07:37] Speaker C: Of warranty here we're dealing with, isn't there? We've got the warranty on the, the product that was used and the product, the warranty from the supplier of that product. Then you've got the, the warranty of the, of the tradesman that installed it. Then you've got the builder that actually subcontracted the work out. There's all these levels of liability involved here, of course.
[01:07:55] Speaker A: Yeah.
[01:07:56] Speaker C: And if, you know, if something wasn't installed properly, you know, and water gets in or, you know, it gets affected by the sun or whatever it is.
[01:08:04] Speaker A: But I think, yeah, they avoid those ones.
But I think the way that you just described it is, is sort of the way to look at it. So let me give you an example. Say for example, I inspect a property and it's, it was built 1900s, okay? Nothing's moved, nothing's wrong, the property is in absolutely perfect condition, the roof is performing and whatever else. And I compare it with a building that was built yesterday.
Totally different construction. Everything is going to be different. Yes. It won't have strapping, it won't have collar ties, it won't have this, it won't have any of that. But I think the way that you described in the sense of if something is occurring as a result of that, then you can clearly say that, okay, it's a defect because the roof has moved or it's failed or this and it's due to. To a lack of all these items.
[01:08:59] Speaker C: Yes. There's a chain involved.
[01:09:02] Speaker A: Correct. So the Australian standard that we use as part of pre purchase building inspections is 4349.1. It clearly says at the start of it that it's not in compliance inspection, you shouldn't be commenting on any unauthorized building works or etc. Etc. So it excludes that for that exact reason because unless something is defective and wrong and it's moved, you can then sort of say, look, it's a lack of this and that sort of stuff over time, but every year when the building code change, it can't mean that all other 20 million properties in Australia is all of a sudden non compliant. In theory, yes. I'm not saying it's sort of wrong to look at it like that. I think that there should just be a little bit more practical aspect and in your professional approach opinion as a building inspector and your assessment that if something's moved and it's. It is defective.
[01:09:55] Speaker C: Sure, sure.
[01:09:56] Speaker B: Okay.
[01:09:57] Speaker A: But if there's no evidence of any movement or, I mean if the property is 100 years old and it hasn't failed or anything like that as a result of not having a collar tie, for example, then what is the actual defect?
You know what I mean? Yes, it is missing that component, which it would have in today's sort of requirements.
[01:10:17] Speaker C: But would you. Are you commenting on bringing it up to standard with your reports? Like. Well, Josh and I were talking earlier about a roof. I don't know if you're hearing in the studio here about a roof that used to be a tile roof that had a certain weight component that was replaced to a steel roof. So they obviously didn't have the weight anymore. So it became an issue where it.
[01:10:37] Speaker A: Could blow off 100 in that instance.
[01:10:40] Speaker C: Yeah.
[01:10:41] Speaker A: Yes, I would report on, on that being an issue because at the time of construction it was designed and whatever else around the tile roof. Okay. But then they changed it. So when they changed it, they should have applied the applicable building code and standard for that time that they have done it.
[01:10:58] Speaker C: Josh, what was the building code? He said it earlier as it's way too long.
[01:11:04] Speaker A: So that's the previous one.
[01:11:05] Speaker B: Yeah.
[01:11:07] Speaker C: Yes.
[01:11:07] Speaker B: 43491.
[01:11:08] Speaker C: That's right. See, I was listening. I'm going to test you again later, Josh.
[01:11:11] Speaker B: You'll see.
[01:11:12] Speaker C: All right.
[01:11:13] Speaker A: So yeah, I think for, for that sort of scenario. Yes.
Talk about compliance. Because it's not. When it was built, it was retrofitted at a later stage where it was most likely a requirement to have strapping and they didn't do it.
[01:11:27] Speaker C: So yes, it becomes a liability for the owner, isn't it? You know, if the roof comes off and goes and hits the next next door neighbor's house and kill someone. You know, there's always a, a chain of liability here that we're dealing with.
Building inspection to back to the agent, back to the seller, you know, just goes on and on. Yeah.
[01:11:44] Speaker B: And you don't have a roof, simple as that.
It's gone.
[01:11:49] Speaker C: Look at that kite.
That's a big kite.
[01:11:54] Speaker A: Because I mean like the other point that I wanted to sort of raise is I did a new construction inspection and big issue in the roof. They basically moved a door, which meant that there wasn't a pillar, which means that they couldn't tie it down. And they basically changed the whole arrangement of the roof and flagged it, said it's non compliant with the engineering drawings, it's not tied down anymore, so on and so forth. And instead of rectifying it, which would have been a huge thing, like it would have cost a lot of money for the builder to rectify, they basically did what's called a performance solution.
And the performance solution is their structural engineers will basically do some calculations and whatever else and they'll change what it is and supply you with a piece of paper, they'll make some adjustments and some modifications to it. But essentially the engineer can override what was initially there or what the Australian standard requires of it. So in one sense, we don't have access to engineering drawings when we do a pre purchase building inspection, you don't know what was there. Is there a performance solution for it? Did they specifically design it and exclude those or whatever else.
[01:13:02] Speaker B: So an engineer can overwrite if they.
[01:13:05] Speaker A: Have the appropriate calculations and that sort of stuff to support the reason why they've decided not to go ahead with.
[01:13:11] Speaker C: Something, then yes, as an engineer, the, the ref. If you've got two building inspectors saying this is major structural, the other one going, no, it's minor structural.
[01:13:21] Speaker A: It's say that a structural engineer, civil engineer probably sits at the top of their hierarchy.
[01:13:25] Speaker C: Is that right?
[01:13:26] Speaker A: Something. Yeah, because they've got the, the ability to actually do appropriate calculations to go, yep, okay, it is going to fail or. No, it's not going to fail. So I think yes, maybe we should.
[01:13:36] Speaker C: Write that into our contracts.
[01:13:37] Speaker B: It's actually major structural and major non structural. That's the two big things. Yeah, but minor, minor not so much the mate. It's the major non structural sometimes may come out as a major, but you classify it as a non structural.
[01:13:51] Speaker C: It's a non issue, Josh, because it's the reports for structural. It depends if it's non structural.
[01:13:56] Speaker B: Well, no, like I had one. Like I was just telling you the example of the roof caving in a little bit, that's non structural. But that still costs a lot of money.
[01:14:03] Speaker C: It costs about 20 grand.
[01:14:05] Speaker B: That goes on. And you're, you're, you're not going for any inspection and climbing into the roof to inspect that. No, that's what I'm trying to say. And then like the other one that I think I remember Paul brought up where the clay tiles, the old one, once it's really old, it starts becoming very powdery and stuff and over time that can start collapsing. Right.
That also become. That's non. That's again a major non structural.
[01:14:29] Speaker C: So again a lot of PR stages really from, from my perspective, PR stations for the agent, for the settlement agent starting to try to recover this because yeah, they can't make that contract fall over. But we've got to remedy this somehow. You know, probably starts with a good pre sale process. I always harp on about the pre sale prep process to try and identify these issues. Some things might be visually obvious that the roof is sort of like bowing or something. Hey, what's the issue up there? Should we have a look at it? Should we get a building inspection before we even go to market?
Can we, you know, prevent these problems from coming up?
[01:15:04] Speaker A: I think that that's sort of like you brought up the point. Major and major non structural. And the interesting part about that is again The Australian Standard, 43491.
[01:15:17] Speaker C: Thank you, Josh. What was it?
[01:15:20] Speaker B: 43491 that Carlos, you see, it's written.
[01:15:22] Speaker A: Up in bold or it doesn't actually define major structural. Okay, so here's the interesting part about that because it's got a definition for major defect, minor defect, safety hazard, and then it talks about major structural. And it's got an appendix and whatever else. But the REWA agreement has taken snippets of that and has formulated a thing to say. Major structural.
[01:15:47] Speaker C: Yeah, only.
[01:15:48] Speaker A: Okay, but there's in theory, the Australian standard goes across all of the other states. So most of these states that minor defects, major defects, you can negotiate on all of it.
[01:15:59] Speaker C: Yeah, we were talking about that earlier about being in a national. Yep, it's an Australian standard Australia wide.
[01:16:05] Speaker A: Exactly. But where the issue comes in is in wa, it's just major structural defects that get sort of covered.
[01:16:11] Speaker B: So just to clarify, is that only a WA 30?
[01:16:15] Speaker A: As far as I know, it's only WA that sort of has the major structural defect clause rather than the other states like Melbourne and Sydney where you can negotiate because there's cooling off periods.
[01:16:26] Speaker C: It's all negotiable if I'm right. Yeah.
[01:16:28] Speaker A: And I mean where the problem comes in with that is the contract is written and it's a contract between the buyer and the seller and the sale agent sort of mitigates that contract. The building inspector has got nothing to do with that contract.
And where the issue comes in in NWA and where I see the major defect, the major non structural things becoming a big issue for clients is the fact that it's a third party agreement. Our insurance companies that ensures us to be building inspectors puts tremendous, I guess, pressure on us to fulfill this thing called the duty of care.
Okay. So that duty of care then comes in, in the sense of if I can observe something that's going to cost you money in the future, I have a duty of care within my expertise to let you know about it. Okay.
[01:17:16] Speaker C: I think agents do professionally as well. Now we all covered by consumer law with purchasing products, services.
And this is coming into that banner as well.
[01:17:25] Speaker A: Correct. And I mean, that's why often people go, well, you're supposed to be doing a major structural defect inspection. Why have you reported boarded on a cracked roof tile? And it's like, yes, okay, roof tiles are not a structural component or whatever else. But just so you know, and just.
[01:17:40] Speaker C: So you know, I want you to know. Because I care. Correct.
[01:17:43] Speaker A: Because that client has an expectation that you've done a building inspection. They don't understand the rework agreement says and that it's major structural only and this is your defined scope. So two months goes by, that crack. Roof tile now starts to leak, the ceilings water damaged and whatever else. First thing that they do is they building inspector and they absolutely go to town saying that, well, I expected you to do a thorough job, so I can do this. Now I've got ceiling damage and that.
[01:18:08] Speaker C: And especially in Perth, because if might be nine months, no rain and all of a sudden torrential rain. All of a sudden you've got a massive black ceiling. He brought up collapsing in on you.
[01:18:18] Speaker B: Brought a very good example because I just recently faced that as well with a client of mine. And obviously we haven't had seen rain for a long time and now suddenly we see a deluge of rain and the tenant was saying, oh, the house is pouring in.
And I remember the property manager saying, oh, you know, it could be gutters we should have cleaned. And I was like, can't be like, I've got my guy to kind of clean the gutters and stuff. But anyway, we went there and actually found the tiles have moved under the solar panels and at the time of inspection we couldn't see that. So the tile has completed. Completely misplaced.
[01:18:52] Speaker C: Now it could have happened at any time.
[01:18:53] Speaker B: Correct. So he brought up a very good point, like looking at that tile, he said, this roof, obviously, you know, when you lay it down once, that's good and full integrity. Right now, solar panel has gone in. Air conditioning has also gone into people.
[01:19:07] Speaker C: Walking around on the roof. Correct.
[01:19:08] Speaker B: So he's saying it in this roof slide in this section here, it's three times that it's been opened up and put back in.
So there's high possibility of something being moved or may even happen again kind of thing.
So that was one of the things. And it's not something that you can find out very easily. And you can't just sprinkle some water on there and see where is the cracks and stuff like that.
[01:19:30] Speaker C: No, you need to get Raymond Dupree in.
[01:19:33] Speaker B: Yeah, exactly.
[01:19:34] Speaker C: To check it out and say, hey.
[01:19:36] Speaker B: Just so you know, he's going to inspect every single tile of that roof.
[01:19:39] Speaker A: But I mean there's obviously those tables limitations. But I think the biggest thing is the insurance companies are sort of coming at us going, you've got a duty of care to report on everything. And it's because they don't understand that WA is different than all the other states. So they ensure inspectors Across Australia and across Australia all the inspectors report on minor defects, major defects, safety hazards, you name it. Again, it's not an issue. Whereas wa, it's totally different. So then the insurance companies don't sort of make the discount connect, that we're only doing that and it becomes a very sort of tricky area to navigate as an inspector. So you'd rather fulfill your duty of care. Yeah, well, do what you're supposed to do.
[01:20:18] Speaker C: We're looking down the liability chain here again where if they, they can refer back to a report at a purchase or at a stage and say, oh well this was or wasn't identified. Correct. Why wasn't it? It's just a finger pointing game, isn't it?
[01:20:28] Speaker A: 100%. But you got some agents out there that will sort of be adamant that that report can only contain major structural defects, nothing else. And they'll, they'll enforce it. And I think that's, that's where the disconnect comes. And.
[01:20:43] Speaker C: Well, I've got Carly Beasley here from Alpha Conveyancing asking why aren't maintenance, maintenance items included as issues on a report that sellers need to rectify?
[01:20:53] Speaker B: So is this from a listener?
[01:20:57] Speaker A: Why is maintenance not included? I think it is, but I think it's. Everyone sort of be. Is careful or building inspectors are careful in reporting on that because of the client's expectation. And I think that between say, you as a sales agent, I heard you say over the radio before, that there is a level of expectation that you've got to give the property over in a good working order and that sort of stuff. Reasonable working order to the best of your knowledge.
[01:21:23] Speaker C: Yeah.
[01:21:23] Speaker A: And I mean if you got anything tricky in a sense of. Okay, I want to be fair, I want to be transparent as well I can. And you're happy to mitigate issues that are beyond major structural. Yeah, it might be something like ceiling saggings, that's 20 grand to and fix and whatever else, then sure, the, the buyer's expectation can be managed and that sort of stuff. But when it comes to there being only major structural defects that are covered, we report on all these things. We ended up being the ones that cop it in the sense of. Because they'll come back to us and say, well, why isn't the broken roof tiles covered? Why can't the seller pay for the gutters that need to be cleared and whatever else? And you're trying to give them a pretty good understanding of the overall condition. And this is where it comes in, where not every defect or everything that's in a building report is a red flag. Okay, so.
[01:22:14] Speaker C: Well, income, the buyers actually agents, right. And try to make our contract subject to the gutters being cleaned, subject to ABC being done.
[01:22:22] Speaker B: Hey, as long as I can, I'm already paying premium for your houses.
You can at least do a gutter clean.
[01:22:29] Speaker C: You're just trying to justify your job, my friend.
[01:22:31] Speaker A: Well, no, but I think that that's. That's amazing because you've got someone that represents a buyer that obviously has, you know, knowledge about the. The contracts and the pitfalls, calls and whatever else. And then it's his job to try and get the best deal for his client with the least amount of money being spent on it.
[01:22:48] Speaker C: I'll tell you, though, he's got a better chance of doing that, you know, in a. When it. When it becomes a buyer's market, when it, you know, there's a hundred houses on the street for sale. They're all the same with Josh, and I've talked about this often, that, you know, that's when he can really shine and add all these extra things into the contracts and, you know, the sellers are going to have to compete, capitulate on the point 100. Whereas at the moment, you know, I will try to be fair and reasonable, but if it's getting a bit too silly, I'm not gonna, of course not advise either, either way.
[01:23:17] Speaker A: But then on your side, your sole purpose is to get the best possible price for your seller. You're not there to sort of entertain anything else, except for they're the ones that are engaging you. They're paying you the commission, the advertising, or whatever else, and your job is to get them the best possible advice.
[01:23:32] Speaker C: Well, it's interesting orders to navigate because sometimes the best possible price in their best interest is coming from a buyer's agent. But this buyer's agent is wanting a lot of hoops or a lot of complications or, you know, maybe even a sub sale like we were talking about before. So what are we doing here? You know, which way do we go? We navigate sort of case by case.
[01:23:50] Speaker B: I think it's a matter of being reasonable. Right. Like if the property. You can clearly see it. Like there was a property that we put an offer in in Morley. You can clearly see the roof sagging right now. Am I just going to leave it to see whether there's a major structural. No, I'm going to know that a major known structural might come up, and then my buyer is going to cop that. So I specifically, because I can clearly see, I even take A photo and say, look at this roof, it's sagging. I'm willing to put in this price subject to the roof passing the inspection, regardless of whether it's a major structural or non structural. That's the condition.
[01:24:27] Speaker C: And that's fair enough.
[01:24:28] Speaker B: That's. Yeah, that's what I'm trying to say.
[01:24:29] Speaker C: That's fair enough. I would probably agree with you. Yeah.
[01:24:31] Speaker A: So.
[01:24:32] Speaker C: Because I don't want it to come back on me either.
[01:24:35] Speaker B: It's not, we're not just putting, you know, any certain condition. You actually have to see the property and see what's going to cause an issue to my buyer in the future. What's going to give.
[01:24:45] Speaker C: That's coming from the right place. Yeah, it's coming from the right place. With me personally coming from safety, I don't want it to come back on me. I'm just like, I don't want that roof to come in and fall in and hurt somebody down the track after the fact, you know, I don't want to have to go back and open up the liability chain myself.
All of our insurances.
[01:25:03] Speaker A: I've got a question for you.
[01:25:04] Speaker B: Question from Raymond. Yes.
[01:25:05] Speaker C: All right, here we go. They're starting to gang up on our.
[01:25:08] Speaker A: Carlos, out of your curiosity, because say, for example, house is in excellent condition. Whatever else, there's no major structural defects.
[01:25:16] Speaker C: Good. How it means it's sold.
[01:25:17] Speaker A: I, I inspect the roof and I basically see that all these roof flashings, there's water coming in, so the ceilings are starting to be damaged, insulation is starting to be damaged and whatever else. In theory, based on your contracting, you can enforce this. And I've seen agents.
[01:25:32] Speaker C: You don't have to do anything.
[01:25:33] Speaker A: You don't have to do anything because roof cover is not a structural element. However, ceilings aren't. Or whatever else.
[01:25:38] Speaker C: There is an element that's quite important called good faith.
And it really goes a long way when you're dealing with people as clients, as repeat business, as repeat clients and just clear conscience and doing the right thing.
[01:25:51] Speaker A: Yep. And I mean apart from that, from a contractual point of view, say it's not covered under a major structural or whatever else, and say that there is no good faith for this particular agent.
Is there not a sense of the contract or a portion of the contract that says that the way that the buyer viewed the property is the way that it needs to be handed or the same condition it needs to be handed over? So then in theory, right, that's, that's.
[01:26:16] Speaker C: That'S tying into consumer law and consumer protection.
[01:26:19] Speaker B: Law. So can I ask a question on that? So you've brought up like this consumer law. Right. Say that happens now. Now the buyer has to fork out say 30,000.
[01:26:28] Speaker A: Yep.
[01:26:29] Speaker B: To fix it. All right. How does consumable operate that?
[01:26:32] Speaker C: Oh, you take them to court.
[01:26:34] Speaker B: Why? Like because that's, that's because the contract does cover it already. Right. Like it's only covers for major structure, nothing else.
[01:26:42] Speaker C: Yeah, it's, you know. Sure. Say you saw the property in condition A. We're going back to the advertising the product that was sold, but the way it's represented.
[01:26:52] Speaker B: But to your point, right, is you. Your point was. I've inspected, I've given it to the best of my knowledge. Now I. Let's say you're saying I don't know.
[01:27:00] Speaker C: That'S a cop out. Yeah, it doesn't wash, mate.
[01:27:03] Speaker B: I'm just, I'm just saying it just.
[01:27:05] Speaker C: Doesn'T wash. You know, if like honestly if something came in, something seriously something bad happened to that property, like ceilings were caving in or whatever. Major water ingress or something, you've got to rectify. You've got to step in and fix this for these people. Otherwise, you know, yeah, sure, you could still settle on it, but these people have a big mess to clean up.
It's not how they bought it. It's not the product you bought.
If you gave me a bottle of water before, didn't open it up, take a drink and then give it to you, here's a brand new bottle of water. It doesn't work that way.
[01:27:38] Speaker B: Yeah, because I had another case. I don't know if you faced this before. There was one in Bunbury. I remember this was from someone over east that bought it. So the moment they bought, the Renault guy walked through, he saw the ceiling bowing and he said that's going to be an issue. It looks like it's about a fault. But to your reports that's not a major structural. Isn't it? No.
[01:27:59] Speaker C: So is that a major non structural?
[01:28:01] Speaker A: It can be, yeah. Major non structural.
[01:28:03] Speaker C: Now water ingress.
[01:28:06] Speaker A: Well, it comes down to you gotta.
The reason why there's a difference between minor and major is because it has to be represented in the report in a way that it's not easily overlooked by the buyer. Okay. So if I deem something to be unsafe or anything like that, it falls in the major branch so that I can let them know about it. But because ceilings, they don't bear any load or anything like that, they're considered a non structural component.
[01:28:32] Speaker C: Therefore they're not holding anything up.
[01:28:34] Speaker A: Correct. So therefore you have to highlight it in the sense of guys, this is serious. It's got a risk of collapse, but it's a non structural component thing, hence the fact that it's major non structural.
[01:28:43] Speaker B: So again, that falls to the buyer, isn't it?
[01:28:45] Speaker A: Correct.
[01:28:46] Speaker B: And then again turn out to the point I was trying to make. So now they still obviously they couldn't do anything about it. On the day of settlement, the next day the ceiling actually dropped.
What happens then? Like in that kind of case, apparently the buyer had to for cut everything.
[01:29:04] Speaker C: Yeah, but the buyer can go back and, and start a process.
[01:29:08] Speaker A: 9 out of 10 times they're left with that. And then that's why I asked you like if, like it sounds like you're the sort of and like I know you're that person that operates in good cars.
[01:29:19] Speaker C: It's not going to happen. Put it this way, Raymond. If I had a set or actually I've got one that did this to me, if I've got a seller that will not come to the party, will not have any, you know, ounce of good faith in them, I will step in myself and put it, put my hand in my pocket and fix it myself.
Because it means more to me that people are safe and happy with the overall experience than them come back later and be hurt or something go wrong. And I've done it myself this many times over the years. I've been in real estate 26, 27 years this year I can't tell you how many times I've done that, whether it was a small thing or it cost thousands of dollars. But I think step in and get.
[01:29:58] Speaker A: Just based on the conversation we've had. So we've got a buyer's agent, building inspector, real estate agent. Right. And I think that that is exactly where the disconnect is. Because if I can come to you as a building inspector and I can say to you, hey Carlos, it's not a major structural, but I'm really concerned about the ceilings being sagged. I think it's going to be unsafe and whatever else and we can have the conversation instead of you just dismissing goes a long way in between you and Josh negotiating on the fact whether or not it's 50, 50, some remediation, some repair works or anything like that, at least the conversation can be had. And it's not just a no contract excludes that go away kind of.
[01:30:34] Speaker C: Yeah, we joke about that sort of thing a lot in terms of it's just structural, but you know, it's case by case and we do take our jobs very seriously. If you came to me and you said, hey, look, I'm concerned, I'm not going to dismiss you, no way. This isn't a professional come to me. So saying I'm Concerned, yeah, but 100%.
[01:30:50] Speaker A: But I think then that sort of follows on where I sort of spoke about it earlier saying, bridging the gap. The most important thing for me is that people don't understand what that agreement is. And whether or not you deal in good faith or someone doesn't, I think them understanding what that contract covers from the start is going to help them a long way in sort of doing that. Because understanding the contract, of the obligations and then speaking to your building inspector and going through that report, you'll sort of come to know that not everything is a red flag and these things are covered, these things are your responsibility and that sort of stuff. And I always like to use the analogy of buying a secondhand car, right.
You go to the dealership and whatever else. Mechanically it's going to be fine. Right? Unfortunately, it's going to be dented, it's going to be scratched, all that sort of stuff. So you can't expect for, for them to have it as showroom condition and whatever else. When you drive out there, it's going to get you from A to B, it's going to be mechanically fine.
[01:31:47] Speaker C: And that sort of stuff would be an unreasonable expectation. But like you say, get you from A to B, that's a reasonable expectation that the product is going to work.
[01:31:54] Speaker A: Correct.
[01:31:54] Speaker C: That it's not going to. The engine's not going to fall out when you drive 300 meters down the road.
[01:31:58] Speaker A: Correct.
[01:31:59] Speaker C: This is where people are protected as consumers.
[01:32:01] Speaker A: But I think on the other side of that, I think some of the buyers can also be sort of on the extreme portion of it where they'll come in guns blazing saying that, okay, the building inspector has said that the shelves need to be regrouted or whatever else and they'll be like it. It, it must be done. The gutters will be cleaned, this will be done and all that.
[01:32:18] Speaker C: No, no, see that, that's when we, we do take our defensive positions. Of course, it depends on how, you know, how we're approached by people. We assess the level of risk and safety liability here and know when to push back. I mean, you know, Carly, B's are for conveyancing. We're constantly talking about, you know, our level of pushback case by case.
We always to try to stick to what the Contracts say look for what you know, what the letter of the law is on these things. But you know, it becomes a personal thing there too, you know, dealing with your, your clients and how to relate to them.
[01:32:52] Speaker B: All right, let's go into a bit of a break. I think we had a really good conversation. I'm really liking this. Raymond.
[01:32:57] Speaker C: One last question from Carly. B's the Alpha convincing. Who is your favorite settlement agent?
[01:33:01] Speaker A: Oh, of course, Carly.
[01:33:07] Speaker C: Here's one for Raymond. You're listening to Carlos and Josh on the Perth property Bros. Back again with the Perth property bros. Carlos and Josh and Perth's premier building inspector, Raymond Dupree from Jim's building Premier. It was really good having you here, man. I knew this was going to be a good chat.
Generally our segments go for about 20, 25 minutes. That last one went for 45. Could have gone for another 45 quite easily. All we needed was a couple of beers, maybe no fire. And we were just, you know, we.
[01:33:35] Speaker B: Just talked a whole lot of can of worms.
[01:33:37] Speaker C: Yeah, that's right. So it was piston building all night.
[01:33:40] Speaker B: Yeah, no, it was good. I mean we were just having a chat with Raymond, obviously. Raymond, you know we share all our marketing stuff and we noticed there's lots of sharing going on on behind the background and a lot of it was even to the South African group. So obviously you're from South Africa by way background. Yep. So were you born there or were you born here?
[01:33:58] Speaker A: So I was born in South Africa.
[01:34:00] Speaker C: I didn't know you were South Africa.
[01:34:02] Speaker B: I didn't know that until it came out on the Facebook and I was.
[01:34:05] Speaker A: Like, wow, it's a well kept secret. Yeah, there's a lot that you know about me, Carlos. No, but yeah, so I was born in South Africa and then moved here in 20 2006. So 19 years ago.
So I spent majority of my life here anyway, so I would say I'm more Australian.
[01:34:21] Speaker B: How old were you when you came here?
[01:34:23] Speaker A: 11.
[01:34:23] Speaker B: Oh wow.
[01:34:24] Speaker A: Yeah, so pretty much did my high school here and, and whatever else.
But yeah, it seemed, I remember when you shared the sort of socials and that sort of stuff. I thought like great, super honored to be on it and whatever else. And I started sharing it and we.
[01:34:40] Speaker C: Got a good listener, a base about 8,000 odd people are driving home from work, listening in specifically to hear you.
[01:34:45] Speaker B: Now our power patrons, we're going to add South Africa to our list now. South Africa, thanks to Raymond's mom. Elta, was it? Yeah, she. Is she listening in?
[01:34:55] Speaker A: Yeah, I think she is.
[01:34:56] Speaker B: You Want to give her a bit of a shout out.
[01:34:57] Speaker C: Hey mom.
Hey mom. That was really cute. Thanks.
[01:35:03] Speaker A: Thanks for the support and whatever else. But yeah, so she sort of went to town sharing it wherever she could and I think that drummed up quite a bit of interest.
I don't know if it's because I am South American or whatever, but yeah, did seem to sort of get a lot of shares.
[01:35:18] Speaker B: Maybe a lot of.
[01:35:19] Speaker C: I never heard an accent.
No inkling of an accent there.
[01:35:22] Speaker A: It sort of comes and goes.
[01:35:24] Speaker C: What? Which words?
[01:35:26] Speaker A: It just depends on which conversation I came out of, I guess.
[01:35:29] Speaker C: Oh, okay.
[01:35:29] Speaker A: So like I still speak up a can't at home. My wife's South Africa.
[01:35:32] Speaker C: You speak Afrikaans?
[01:35:33] Speaker B: Yeah.
[01:35:34] Speaker C: Wow.
[01:35:34] Speaker A: Yeah.
So I think if you never would.
[01:35:37] Speaker C: Have picked it really.
[01:35:38] Speaker A: Honestly, if you speak it enough and you come back into a conversation, you sort of tend to have those, I guess, attributes of an accent that you need for the language.
[01:35:47] Speaker C: Yeah.
[01:35:48] Speaker A: Come through. But majority of the time it's English. But yeah. Bilingual.
[01:35:52] Speaker B: It's interesting.
That's when I found out that you were South African, when I saw that post.
No, it's good. But I think a lot of all the South Africans here would probably start giving you a call, isn't it, from now on.
[01:36:04] Speaker C: Oh geez.
[01:36:05] Speaker A: Yeah, hopefully.
But I mean I'll sort of.
[01:36:09] Speaker B: Yeah.
[01:36:09] Speaker A: First recommend them through to you guys and that sort of stuff. Like, I mean they have to have a property before I can inspect it. So Carlos can start listing them, you can start buying them.
[01:36:18] Speaker B: Yeah, I can start.
[01:36:19] Speaker A: So it'll all have to start as a fluid sort of system, I guess.
[01:36:23] Speaker B: Another question.
[01:36:25] Speaker C: Get rid of a couple of questions here. Cuz they're building up and look at the time. I'm like, right. Another question for you.
Do you find clients freak out with a large amount of points that were made on a building report?
[01:36:38] Speaker A: Yes, absolutely.
And I think that this comes down.
[01:36:42] Speaker C: To no good, Satan says everything. Etc. So you're right. Yes, absolutely.
[01:36:46] Speaker B: Okay.
[01:36:47] Speaker C: They do freak out.
[01:36:56] Speaker A: My God, I can't do it like that.
Yeah, like I think clients definitely freak out. I think it just comes through like a psychology thing where they just see the word defect and if they see the word defects. Yeah, whatever else. And I think that that's where educating them on some things, you know, if it's. It's a maintenance observation. It's just maintenance. Every house has it. You have to do it at certain intervals and whatever else. And I think that brings it back to not everything is a red flag. So clients just jumps to the absolute worst case scenario every single time. Regardless of the severity of the defect. If a report says that it's major, it is a lot serious or a lot more serious. But if it's minor in maintenance, it tends to be 99% of properties will very likely have the exact same thing. You're never going to avoid it.
[01:37:45] Speaker C: Your reports have this clearly separated.
[01:37:49] Speaker A: Correct.
[01:37:50] Speaker C: Here's the section that's major that you really need to know. And this is an FYI courtesy. This is what you paid me for.
[01:37:55] Speaker B: Correct.
[01:37:55] Speaker C: I've got the keen eye sort of report. Here it is.
[01:37:58] Speaker A: So I think, yeah, if clients as a basis can just start off by looking at the severities as if it says it's major or it's major structural, it's 10% to be something that needs to be attended to straight away. If it's a minor defect and that sort of stuff, it can be done with time. It's not an immediate thing. It's very likely, like I said, that most properties have those sort of things.
[01:38:17] Speaker B: I mean, I agree with Raymond.
[01:38:19] Speaker C: It's more of a. I don't agree with Raymond. Don't you gang up on me again.
[01:38:24] Speaker B: Today's the Josh and Raymond show, bro.
[01:38:27] Speaker A: Yeah, I don't think Josh has made fun of my accent or anything like that just yet.
[01:38:30] Speaker B: There you go. See? I mean, see, you've dug your own grave, man.
No, but in all seriousness, I mean, anyone who sees defects is going to flip. Right. So it's a matter of knowing what's in there, what is all the education piece. In fact, even I spend some time with my clients to sit down with them to say what is major, what is not what, what maintenance look like and why it's good to have it in there. It's good for you to know. So that in future, because I think some go to the extent of saying this should be done, looked at every year or something like that. So it's good for you to know, especially if it's an investment property. Right. You want to make sure that it's right, you're maintaining it correctly and you know, you want to know what's possibly going to be wrong.
[01:39:14] Speaker C: I think it's a quite a valuable report. It is to know the maintenance and the things you need to plan for and budget for.
[01:39:19] Speaker B: Yeah. I mean if, if it's just your usual mom and someone were to just put buy it off the street and obviously they take a building inspector and suddenly you see all these red flags without knowing what it is. Yes, they are going to jump through hoops. I do understand, but you don't have that intermediary person to educate them on that. That's. That's where that. That's where you. You come in to say, you know.
[01:39:38] Speaker C: Yeah.
[01:39:38] Speaker A: So I think that that's where I've tried to sort of bridge that gap, because the moment that a client engages me, the first thing that I would try and see is, look, have you signed a REW agreement? Nine out of 10 times, yes. And then I would say, say to them, look, do you understand the obligations of that? Nine out of ten. Nine out of ten times, no.
[01:39:55] Speaker C: They say no.
[01:39:55] Speaker A: And I'd go through and explain it to them. Okay. And then I think the crucial point there is, like, I mean, I work with other buyers, agents, and that sort of stuff, and it's a service.
[01:40:03] Speaker B: Okay, you're even.
So that's it.
[01:40:09] Speaker C: Oh, you didn't know that, did you? Josh, he works with other buyers, agents.
[01:40:13] Speaker A: I'm not exclusive.
[01:40:14] Speaker C: Again, digging your own grave over there, my friend.
[01:40:21] Speaker A: I had some brownie points at the start.
[01:40:23] Speaker C: That's good. That's good. Yeah. Sorry.
[01:40:25] Speaker A: I think it sort of comes down to then, like, my sole sort of goal then is to sit down and have that conversation with the client once the report comes through.
Instead of, say, a buyer's agent or a sales agent or the property manager explaining to them that, hey, this might be a big issue or might not be an issue, having a building inspector sit there and go through the report with you and say, look, this is what this is. It's not important. This is not covered and whatever else, and actually explain to you the implications of it makes the world of difference. I've had clients where look at the report, they freak out, they give me a call, we spend 10, 15 minutes on the phone, and then the moment that we've had that debrief, everything is gone away. Because they don't understand building terminology. They don't understand the consequences of things. But once you explain it to. To them, it's.
[01:41:11] Speaker C: It's no problem.
[01:41:12] Speaker A: And if you've had that conversation up front about what a seller's obligations are and what their obligations are, they go into it with the mindset that, okay, only major structural things are covered. And then it's about mitigating and explaining to them, hey, to get your gutters cleaned out, we're not talking about five grand. Talking about 150 bucks, easy to.
[01:41:30] Speaker C: Yeah, you're right.
[01:41:30] Speaker A: To get your showers regrouted, you don't have to rip out your entire shower do new shower screens, new near taps and whatever else. It's a case of 750 bucks. You regroup your shower, you do it every five years.
Okay? So when you start adding up those little minor things, it might be five grand or ten grand. And in the scheme of things, if a house hasn't been maintained for five to ten years and you got to spend ten grand to maintain it, there's.
[01:41:53] Speaker C: Going to be signs of wear.
[01:41:54] Speaker A: It's pretty much on par with what you would have done anyways, to be frank.
[01:41:57] Speaker B: I mean, there's no harm asking, I think as well, you know, there's no harm asking the selling agent and the sellers, hey, you know, this is happening.
Would your seller mind doing it as well? Is that fine? You know, there's no harm asking. The worst that will happen is no.
And I've got that across a few times as well. And we've managed to get the sellers to get it to do it as well.
[01:42:20] Speaker C: The over east buyers are the ones that really ask a lot of questions because things are different with them.
[01:42:25] Speaker B: Oh yeah, like, can you do this?
[01:42:27] Speaker C: Can you remedy this? Can you fix that, clean that, upgrade this? And generally when we have a massive shopping, unless we say, look over here with things different, do things.
[01:42:36] Speaker B: I think we know when people start asking a little bit too much stuff.
[01:42:40] Speaker C: Oh, you're right.
Another quick question for Raymond. What's the largest property you've ever inspected?
These listener questions coming in.
[01:42:49] Speaker A: So I'm just so property in City beach, actually.
[01:42:52] Speaker C: City beach, yep.
[01:42:53] Speaker A: So completely and utterly underestimated how big it was. So when I did my quoting and that sort of stuff, I should have spent a little bit more time. But I think it was something like a six or seven bedroom. Five bathrooms.
[01:43:07] Speaker C: Six or seven bedroom, yep.
[01:43:08] Speaker A: It was absolutely insane. So three stories, loft, underground, car, garage and whatever else.
So yeah, that was probably it.
[01:43:17] Speaker C: How long did that take, Raymond?
[01:43:19] Speaker A: We took about two and a half, three hours.
And then to sift through all those photographs and whatever else to write the report was quite intense.
Did another one as well where it was four stories.
So I mean, this is where you start to have to be quite, I guess, creative when you do an inspection because obviously access limitations and that sort of stuff. So we do do have other tools like drones and that sort of stuff.
[01:43:47] Speaker C: Oh yeah.
[01:43:47] Speaker B: Oh yeah.
[01:43:48] Speaker A: They can sort of help us out a little bit. It's not 100 sort of perfect, but can give you a pretty good indication if there's any sort of major things and whatever.
[01:43:57] Speaker C: But yeah, we're looking at that tick tock inspector and he's got this, this camera that you can go through. Right. You've probably got this camera. You can see where the tiles have been spot fixed.
[01:44:06] Speaker B: Yep.
[01:44:07] Speaker C: You just see those.
You know, what's the importance of that by the way?
[01:44:12] Speaker A: It's just an improper way of fixing the tiles and that sort of stuff. So when you do waterproofing and they can crack and all that sort of thing. So there's a specific requirement of how you should be sort of applying the adhesive and the tile grout and whatever else to it.
[01:44:24] Speaker C: Just total coverage.
[01:44:25] Speaker A: And when they do spot fixing and that sort of stuff, it's just saving on cost. It's improper substandard works and that sort of thing. So it's a big no, no. Especially in wet areas and that sort of stuff.
[01:44:36] Speaker C: Brand spankers. Yeah.
[01:44:38] Speaker B: So tell me Remo, what's one of the share with us bad scenario you've encountered? Well, it was, was one of the worst thing that you've encountered when you're doing your building invest share some stories.
[01:44:51] Speaker A: In the sense of the worst defect or just the worst overall experience.
[01:44:55] Speaker B: Give me a, give me both.
[01:44:58] Speaker A: Okay, so I did this in inspection, it's probably about a year and a half, two years ago.
And it was something that you touched on that Paul would have spoken about. The terracotta tiles. I don't know if you've ever heard the, the term chemical deludification. Okay.
Now in most instances it gets classified as a major non structural defect because it's only in the tile battens. And there's this massive disconnect about. Is tile battens structural? Is it not Is part of the roof cover is it's not whatever else. Like we can, we can have a whole podcast just on that topic.
But anyways, this particular property, the chemical delignification was so severe it actually had started to affect rafters and there was quite significant deflection water was getting in all that sort of stuff. Like I mean we're talking about a complete roof restoration.
It's not just in the tile batmans.
And so I spent a considerable amount of time going through my notes, reviewing this and whatever else and I ended up putting it down as a major structural defect.
And the reason why I sort of justified it is that is it's beyond just the roof cover. We've got, you know, water ingress, we've got it affecting structural rafters, there's clear deflection in the rafters, so on and so forth.
The reason why it's a bad experience is because I have had the selling agent at that stage send out a massive email essentially saying to me that like, it's a maintenance thing and like he can't believe that I've reported on it like this, so on and so forth, they're not going to repair it, they're not going to do this. And he's happy to put me in touch with, can't remember who he said, but to educate me on the matter.
[01:46:40] Speaker C: Rude.
[01:46:41] Speaker A: Isn't that shaky, which you can imagine. I, I got quite sort of upset about it and I was just like, well, let me educate you.
I went through a massive process. I ended up paying for a structural engineer out of my own pocket to go out and do an assessment because as we talked about the hierarchy and that sort of thing, and I just said to him, look, this is my findings, this is what I think and this is the reason why I've deemed it as a major structural.
The structural engineer's report came back and he agreed.
He said that is a major structural sort of thing. And we sort of went back and forth and eventually the agent sort of came back and was just disheartened by it and was having a go at me and that. And I just said to him, look, at the end of the day it's that severe that I basically sacrificed any of the money that I made this inspection to pay for a structural engineer to get out. Just to show you that, look, it is significant. I'm not just making it up, I'm not just forming an appointment, opinion or whatever, it's bad, needs to be attended to.
It ended up being a good outcome because essentially they agreed to remediate it and the remediation cost for it was close to 45 grand. And I mean, if you've got someone that then comes out and tells you it's $45,000 to do this repair, how can you justify it as a maintenance thing?
But I'm talking about that whole entire process was over the course of about four to five, six weeks.
And that sort of happened behind the scenes. And people often sort of overlook that.
When you are a building inspector, you don't necessarily just do the report.
It's everything else that comes with it.
[01:48:16] Speaker C: Well, we get it as well. I mean, you know, sometimes you get amazing easy clients, whether you're buying for one or selling for one just goes right through. And others just sticky, sticky properties, they just have, have prickles on them. One thing seems to come up to the other.
You know, we just, we Take the good with the bad. You know, we appreciate the good and we ride through the bad. And yeah, I'd say that's our best.
[01:48:39] Speaker A: That was my worst sort of experience and that sort of stuff because I mean, I had to spend so much amount of time and effort to be able to sort of justify an opinion when I had people challenging my opinion. That has no building experience experience, no building knowledge or anything like that.
[01:48:55] Speaker C: But what'd you learn from that? Like say if that happened to you tomorrow, next week and the week after, are you going to arrange a structural engineer to go and justify your opinion out of your own pocket or are you just going to sort of develop that thicker skin and say, no, this is the way. This is what I said based on my experience, full stop. That's my determination 100%.
[01:49:13] Speaker A: And I think what I learned from that was just to be a lot more prepared in what the Australian standards and that sort of stuff said and equipped myself with creating these definitions or justifications as to why I do something or call something the way it is. But I mean if the opportunity came up again to save a client $45,000 in a dispute where they disagree with me, then sure, I will pay for another structural engineer to come out because it seems to be the only thing that really takes precedence over different opinions.
But it's interesting because the Same Australian Standard.
[01:49:49] Speaker C: 43491.
[01:49:51] Speaker B: Yes. You forgot that, did you?
[01:49:52] Speaker C: No, no, I was just stretching my back as 434 down my ear.
[01:49:57] Speaker A: It actually has a comment in there or a section to say that different inspectors can have different opinions. Right. And the same inspector can have a different opinion on a different day.
Quite open ended. Okay, so I mean, because you've got in that saying that people have different views and different opinions and whatever else. Of course sometimes it just leads to getting a structural engineer that that's just the way it is for significant issues.
[01:50:21] Speaker C: I love that. That's the tiebreaker that just procedurally makes a lot of sense to me. But what about accessing one time frame? I mean these guys are generally pretty busy, aren't they?
[01:50:32] Speaker A: Correct, yeah. So I mean, yeah, like there's plenty available.
I mean I don't think that there's a preference for, for certain ones. Like if you have a structural engineer qualification, that sort of stuff and you're certified, then yeah, you're qualified to do the job. So. Yeah, yeah, for sure.
[01:50:46] Speaker B: All right. It's been very insightful. Look, I want to fire away some rapid fire rounds.
[01:50:51] Speaker A: Yep.
[01:50:51] Speaker B: All right, so very straightforward answers don't need really long ones. You want to elaborate just a little bit? All right.
All right. So first one biggest property defect that's easy to miss.
[01:51:05] Speaker A: Damage.
[01:51:06] Speaker B: Termite damage. Really? Why?
[01:51:09] Speaker A: Because I think oftentimes people sort of, they dismiss the fact that they've got to do termite management systems. They look at a property's history and go, it's never had any termites or anything like that. But what they don't understand is you've got no control over the conditions around the property.
[01:51:23] Speaker B: Okay.
[01:51:24] Speaker A: So you buy an investment property, it's never had to are damaged. Your tenants move in, they decide they want a fireplace, they put firewood right next to your house. Boom. There's new production.
So I think it often gets overlooked. Maintenance is always non existent. And so, yeah, that it.
[01:51:40] Speaker B: All right, next one. Your dream home, brand new build or corrector home with a charm.
[01:51:46] Speaker A: Who's building it?
[01:51:48] Speaker B: Well, corrector home is an old one.
[01:51:52] Speaker A: I mean, it's a bit of both. I'd say that if I have to keep my wife happy, it'll have to be a new home. But I sort of like the character homes.
[01:51:59] Speaker B: Yeah, I like the character one as well.
What's worse, cracked walls or dodgy roof? Dodgy roof Dodger.
One inspection tool that you can't live without a torch.
What's the one thing buyers overreact about?
[01:52:21] Speaker A: I would say maintenance. Things like. I think that, yeah, it comes back to what we discussed before. Simple things that are expected to be done by every property owner is always a big thing.
[01:52:32] Speaker C: See, that's a my. When we're doing the listing of these properties, I always say to our sellers, let's go through and do a maintenance check and do a tidy up all the way through. Get a handyman in, get the repairs done.
[01:52:44] Speaker B: Done.
[01:52:45] Speaker C: Because what we want to do is reduce the amount of pages in that building report. That's going to eventually come. You know, we want to reduce all those maintenance issues.
[01:52:53] Speaker B: Maybe you need to do training for real estate agents how to conduct themselves.
There you go.
All right, five more questions. What's the one defect people always underestimate?
[01:53:06] Speaker A: Moisture.
[01:53:07] Speaker B: Moisture, yeah.
[01:53:09] Speaker C: Underestimated.
[01:53:10] Speaker A: Yeah. I'd say people underestimate it in the sense of most of the time it's excluded. Okay. So some building inspectors will report on, you know, grout being deteriorated or down pipes not connected to storm water and whatever else, and they leave it like. I mean, a classic case of it is a building inspector might say to you, hey, it's not a defect as such, but These downpipes near your retaining wall are just distorting on the water. You should probably get a connected to soak wells. They disregard it. Two years from now, that retaining wall is now collapsing and failing and they're like, why is this happening, what's happening and whatever else. And it's because you didn't manage your storm water appropriately and now you've got structural issues.
[01:53:50] Speaker B: If you weren't a building inspector, what would you be doing?
[01:53:55] Speaker A: I was going to say maybe a real estate agent, maybe buyer's agent, but I'll probably go back to my roots and yeah, I loved engineering. I love designing, drawing and that sort of stuff. So that's always been a passion of mine.
[01:54:09] Speaker B: All right, what's your favorite wa suburb to inspect properties in?
[01:54:14] Speaker A: Bell Divers.
[01:54:15] Speaker B: Really? Yep.
We'll come back to that.
One piece of advice for first home buyers in one sentence, One sentence, read.
[01:54:24] Speaker A: Your contract and if you don't understand it, call your settlement agent, call your buyer's agent, call your agent or whoever. Just get advice on it.
[01:54:31] Speaker B: Okay, last one. Deal breaker. Defect. What's the one thing that should make a buyer walk away instantly?
[01:54:37] Speaker A: Termite damage in the roof. Any termite damage that's found significant enough, or actually I should rephrase. If there's live termite activity inside of your roof frame, chances are that termites are subterranean. Okay.
[01:54:50] Speaker C: So long way to get up to the roof.
[01:54:52] Speaker A: Correct.
[01:54:52] Speaker C: They've had to eat their way up there.
[01:54:54] Speaker A: And we under a pre purchase inspection can only do a visual inspection. So I can find the termites in your roof, explain to you the extent of visual damage that I can see, but I don't know how far that extends.
[01:55:07] Speaker C: No.
[01:55:07] Speaker A: Until you start pulling stuff away. So I mean termite damage in a skirting board or in a kitchen cabinetry and that sort of stuff, it's manageable. But if you find life termite activity in a roof, personally, I would walk away.
[01:55:19] Speaker C: So why Bell Divers? Out of interest?
[01:55:22] Speaker A: A lot of newer homes, I mean, majority of them that I inspected and that sort of stuff, they're built quite well.
It's newer homes. So I mean if you're going to places like Ellenbrook, Belliger, all those older.
[01:55:38] Speaker C: Properties, it's different here, different areas. You know Bell Divers isn't a suburb of Perth, don't you?
[01:55:43] Speaker B: Right.
[01:55:43] Speaker C: Is it? It's not officially in the metro map, really. Have a look at that.
When you look up Perth, you see where the, the boundaries are all sort of extending there.
Valdivis is outside of it.
[01:55:58] Speaker A: So what is the fall under.
[01:56:00] Speaker C: See that stops around Singleton.
The top boundary is I think around Clarkson. No, it's been extended up to Alkamos now.
[01:56:08] Speaker B: Interesting.
[01:56:08] Speaker C: Slightly. There you go.
[01:56:09] Speaker A: Interesting.
[01:56:10] Speaker C: So, no, it isn't a suburb.
All right, well, it's a regional area.
Yeah, we're ready to go, Josh.
[01:56:17] Speaker B: Yeah, awesome. Now, it was a very good one, Raymond. Really appreciate your time. I think it was a very good chat, isn't it, that we had.
[01:56:23] Speaker A: Oh, thank you, guys. I really appreciate it.
[01:56:26] Speaker C: Thanks for coming on, man. That was a really good chat. Hopefully you come back.
[01:56:29] Speaker B: Yeah, I would love to. I really like that. You know, you actually sit with your clients, you actually discuss the report ports. You know, that's. That's obviously education is a big thing.
I liked also that you mentioned about the roof that you did and you know, you actually paid something out of your pocket.
[01:56:45] Speaker C: I think as business owners, mate, we kind of just.
[01:56:48] Speaker B: Oh, yeah, we do that.
[01:56:48] Speaker C: We have to do it.
[01:56:49] Speaker A: But I think that, that.
[01:56:50] Speaker B: But I'm glad that it decided what you said.
[01:56:52] Speaker A: It's all about, you know, having that customer service and whatever else and being fair about it.
[01:56:57] Speaker C: There's good faith, there's. There's good customer service is doing the right thing by your own conscience. But the reason I was asking the questions earlier, because it gets to a point, you know, you're not going to be paying for a building inspector every week. Gets to a point where you get a thick enough skin to say, I know what I'm talking about, I know what I'm doing, I know where I'm coming from, and this is my determination.
At some point, you just say no more.
[01:57:20] Speaker A: I think it also comes down to sometimes you just want to reinstill confidence in your client that you've made the right call. Because at the end of the day, if you submit something that the agent disagrees with, the settlement agent disagrees with, and whatever else, it can become quite sort of daunting and. And the client can second guess you. So having that second opinion or whatever else is just to go like, hey, like it is what it is.
[01:57:43] Speaker C: Yeah, exactly.
[01:57:44] Speaker B: So if you want Raymond Dupree on your site, when you do a building inspection, how should they contact you, Raymond?
[01:57:49] Speaker A: So they can go to our gyms website.
So Jim's building inspection, they can just call the national number, 131546. And yeah, just ask to speak to Raymond.
[01:58:01] Speaker B: Amazing.
All right, well done. And again, shout out to all your family in South Africa, who's listening? And friends, thanks.
[01:58:08] Speaker A: Thanks for listening, Mom.
[01:58:09] Speaker B: Yeah, there you go.
[01:58:11] Speaker C: Thanks for coming on, bud. Really appreciate it.
[01:58:13] Speaker B: I think we need him on one more time, isn't it? Next time, Josh.
[01:58:16] Speaker C: Another good property show it is. Lot of valuable information there.
[01:58:20] Speaker B: Yes, I think we need to do another one. I think there was lots of information in there.
[01:58:23] Speaker C: Yeah. It'd be good to have you on again, Raymond, if you can come in.
[01:58:26] Speaker B: I always like ganging up against you.
[01:58:28] Speaker A: So I am finding quite enjoyment in that.
[01:58:32] Speaker B: There you go. I, that's, that's the thing. No one sees that.
[01:58:34] Speaker C: No one sees that there's four microphones. So next time we're gonna have two agents and you guys can come in, we'll go head to head. What do you reckon?
[01:58:44] Speaker B: Five? Fine, bring it on.
[01:58:46] Speaker C: I did enjoy last week though. I had the, the value was so on my side, taking hit after hit after hit.
[01:58:54] Speaker A: I think it would be interesting having two, two agents and then a building inspector and a buyer's agent and then. Yeah, we do rapid fire questions, simulate situations, see how you.
[01:59:04] Speaker C: Yeah, we can set that up. We can set up like a rapid fire question. Like a, on the, on an app or something.
[01:59:08] Speaker B: Yeah, sounds good. Let's do that. All right, you're listening to the Perth probably with Carlos and Josh.
Josh from Josh, Anthony Bias agent. You can call me on 041981-5575 and.
[01:59:21] Speaker C: You can contact me, Carlos Garcia, WA Property Sales 0419 double seven five triple five or
[email protected] we'll be back again next Monday, 3pm Australian Western Standard Time.
And yeah, I hope you have a good week. We're going to have another special guest now. Next week.
[01:59:38] Speaker B: Yes, perhaps.
[01:59:39] Speaker C: Who have we got next week?
[01:59:40] Speaker B: I think we've got Mortgage broker next week.
[01:59:42] Speaker C: Stephen Paul.
[01:59:43] Speaker B: Yes, good one.
[01:59:46] Speaker C: And then hopefully we're going to have Michelle skiing. Come on, Property manager who may be joining our chapter.
All right, Perth Property bro signing off. Thank you for listening.