When considering whether to purchase or build a Newcastle investment property, you’ll need to consider many different factors. On one hand, an older home can be rented out immediately and will be more affordable, while on the other hand, it might need renovation work to modernise it and make it more comfortable. If you’re leaning towards buying a home, recent findings in Newcastle indicate it might actually be better to build one instead – especially if you have your eye on a pre-1980’s home.
Asbestos is still a threat
When most people think of asbestos exposure, they think of mines and factories as the danger zones. What many don’t know is that loose-fill asbestos was a popular building insulation material in Newcastle homes right up to the Eighties, and that it’s still present in many houses.
Loose-fill (friable) asbestos is more dangerous and expensive to remove with than non-friable asbestos. Because it’s not bound together, loose-fill asbestos becomes airborne easily, posing a serious safety threat.
To date, almost 150 homes in New South Wales have tested positive for asbestos insulation. A recent case saw a family with young children forced to abandon their Glendale home just 12 months after buying it because asbestos had been detected. Because it was loose-fill asbestos, they had to leave their house and all the belongings behind before selling the home to the government, who will demolish it.
Because the problem is so widespread, the government has introduced a Voluntary Purchase and Demolition Programme for those living in Maitland, Cessnock, Port Stephens, Newcastle City and Lake Macquarie.
Safeguard your investment
If you’ve invested in a home in Newcastle that is found to contain asbestos, this will have massive implications. You’ll need to act within five months of the asbestos being detected to receive financial assistance, and you’ll also need to contact ATO directly as this will affect your tax status.
Build don’t buy
For maximum peace of mind, we recommend that you build your Newcastle investment property instead of buying one. Building is the only way you can be 100 percent sure that your home is asbestos-free and safe for habitation.