A building inspection report is one of the most important tools when buying or selling property in Melbourne. It provides a detailed look at the condition of the home, helping you identify potential problems that could lead to costly repairs or safety hazards. However, not all issues are created equal—some are minor and easily fixed, while others are major red flags that demand immediate attention.

In Melbourne, unique factors like shifting clay soil, older housing stock, and termite risks make certain problems more common. Knowing how to spot these red flags in your inspection report can save you from unexpected expenses or serious regrets later. This guide highlights the top concerns to watch for when reviewing a building inspection report.

Structural Issues

Structural issues are some of the most serious red flags you can encounter in a building inspection report. These problems affect the stability and safety of the property, and they’re often expensive to fix. Melbourne’s clay-rich soil is a known culprit for foundation movement, which can lead to visible damage and long-term risks.

  • Foundation Problems: 

Look for notes on cracks in the foundation or uneven flooring. These are common in Melbourne due to soil expansion and contraction during weather changes. Large or widening cracks are particularly concerning and may require a structural engineer’s evaluation.

  • Wall Cracks: 

Inspectors often highlight horizontal or jagged cracks in walls, as these can indicate structural stress. While hairline cracks may be harmless, anything larger could signal shifting foundations.

  • Roof Damage: 

Melbourne’s unpredictable weather often leads to roof wear and tear. Sagging rooflines, loose tiles, or improper repairs can all compromise the structure’s integrity.

Addressing structural issues early is essential to prevent further deterioration. If your report flags these problems, it’s wise to seek professional advice before proceeding with the purchase.

Water Damage and Moisture Problems

Water damage is a recurring issue in Melbourne properties, thanks to the city’s heavy rains and fluctuating weather patterns. Excess moisture can weaken the building’s structure, promote mould growth, and attract pests like termites. If your inspection report highlights water-related problems, take them seriously.

  • Leaking Roofs or Gutters: 

Reports often flag signs of leaks, such as water stains on ceilings or rusted gutters. These issues can lead to significant structural damage if not addressed.

  • Rising Damp: 

Common in Melbourne’s older homes, rising damp occurs when moisture from the ground seeps into walls. Look for notes on bubbling paint, salt marks, or discoloured skirting boards.

  • Blocked or Poor Drainage Systems: 

Water pooling around the property is a red flag for poor drainage. This can lead to foundation issues and increased risk of flooding.

Water problems are not just cosmetic—they often indicate deeper issues that require immediate action. Fixing these problems early helps protect the property’s value and structural soundness.

Termite and Pest Activity

Termites and other pests are a significant concern for Melbourne homeowners, making their presence a major red flag in any building inspection report. Melbourne’s climate, combined with its mix of older timber homes and leafy suburbs, creates the perfect conditions for termite infestations. If your report highlights evidence of pest activity, it’s important to take swift action.

  • Damage to Timber: 

Termites often leave timber hollowed out or weakened. Inspectors will look for structural elements like beams, floorboards, or doorframes that show signs of decay or brittleness caused by pests.

  • Mud Tubes and Nests: 

Termites create mud tunnels as they travel from their nest to a food source. These tubes, often found near foundations or in crawl spaces, are a clear red flag.

  • High-Risk Areas: 

Many Melbourne suburbs, especially those near bushland or with older homes, are prone to termite activity. Areas with high moisture levels or abundant greenery are particularly vulnerable.

Pest infestations don’t just damage timber; they can undermine the structural safety of the entire home. If termite damage is identified, engage a pest control specialist to assess the severity and recommend treatments.

Electrical and Plumbing Hazards

Issues with a home’s electrical or plumbing systems are red flags that can pose safety risks and lead to costly repairs. Melbourne properties, especially older homes, are more likely to have outdated systems or wear and tear that needs addressing.

  • Outdated Wiring: 

Faulty or non-compliant electrical wiring is a safety hazard. Reports might flag old-style fuse boxes, exposed cables, or overloaded circuits. Modernising the electrical system can be expensive, but it’s essential for safety.

  • Leaking Pipes: 

Corroded or leaking pipes are a common issue in older Melbourne homes. Signs of plumbing problems include water stains, dripping taps, or unusual water pressure.

  • Poor Water Pressure or Drainage: 

Inadequate water flow or slow drainage often points to deeper plumbing issues, such as blocked pipes or faulty connections.

These hazards can escalate if ignored, so it’s crucial to resolve them before moving forward. Consider hiring an electrician or plumber to provide a detailed inspection and estimate repair costs for flagged issues.

Asbestos and Other Hazardous Materials

Hazardous materials like asbestos and lead paint are significant red flags, especially in older Melbourne homes. While these materials were common in past construction practices, they now pose serious health risks if not properly managed.

  • Asbestos: 

Often found in roofing, insulation, and cladding, asbestos is a concern in properties built before the 1990s. If the inspection report flags its presence, professional removal is usually required, which can be expensive.

  • Lead Paint: 

Homes built before the 1970s might have layers of lead-based paint. If disturbed, this paint can release harmful particles. Inspectors often identify areas where old paint needs to be safely stripped and replaced.

  • Other Risks: 

Materials like old insulation or outdated plumbing can also contain hazardous substances that require careful handling.

If hazardous materials are flagged, factor in the removal or remediation costs before finalising a property purchase. Always consult specialists to ensure safe and compliant removal.

Outdated or Non-Compliant Features

Outdated or non-compliant features in a home may not seem like immediate red flags, but they can lead to safety risks, additional costs, and legal complications. In Melbourne, where building regulations are strict, non-compliance can be a major issue.

  • Windows and Doors: 

The report might highlight cracked glass, faulty seals, or windows and doors that don’t close properly. These issues can compromise insulation and security.

  • Safety Hazards: 

Missing smoke alarms, loose railings, or uneven floors are common findings. Melbourne properties must meet local safety standards, and failing to comply can delay a sale.

  • Non-Compliant Renovations: 

Extensions or renovations done without proper permits are a red flag. These can lead to fines or require additional work to bring the property up to Melbourne’s building codes.

Non-compliant features might seem minor, but they can become costly headaches. If flagged in the report, it’s essential to address them promptly to avoid future complications.

Cosmetic Fixes Hiding Bigger Problems

Cosmetic improvements like fresh paint or polished floors might make a property look appealing, but they can sometimes be used to hide bigger problems. An inspection report that identifies these quick fixes should raise concerns about what lies beneath.

  • Fresh Paint Over Cracks: 

Newly painted walls can mask structural cracks or rising damp. Inspectors may use moisture meters or thermal imaging to detect hidden issues.

  • Polished Floors Hiding Damage: 

Shiny timber floors can conceal termite damage or warped boards caused by water problems.

  • DIY Repairs: 

Poorly executed fixes, like improperly patched walls or substandard plumbing repairs, may not meet Melbourne’s building standards and could indicate deeper issues.

Be cautious of properties where cosmetic improvements dominate the inspection findings. Dig deeper to ensure the problems aren’t being hidden behind a façade.

Environmental Concerns

Environmental factors can significantly impact a property’s safety and value, making them key red flags in a building inspection report. Melbourne’s diverse geography, ranging from flood-prone areas to densely urbanised zones, often brings unique risks that buyers should not ignore.

  • Proximity to Flood Zones: 

Certain Melbourne suburbs, particularly those near rivers or low-lying areas, are at higher risk of flooding. An inspection report might highlight poor site drainage or previous flood damage, which can lead to costly repairs and insurance challenges.

  • Poor Ventilation: 

Homes with inadequate airflow often show signs of condensation, dampness, or mould, particularly in kitchens and bathrooms. This is a common problem in Melbourne, where many older properties weren’t designed with modern ventilation systems in mind.

  • Bushfire Risks: 

Properties located near Melbourne’s bushland areas may be flagged for bushfire vulnerability. Reports might recommend upgrades like fire-resistant materials or additional safety measures to meet compliance standards.

Environmental concerns can have long-term implications, so it’s important to understand these risks and budget for potential mitigation measures.

When to Seek Professional Advice

Red flags in a building inspection report aren’t always the final word. For serious or unclear issues, it’s crucial to seek advice from specialists to fully understand the scope of the problem and the costs involved.

  • Structural Engineers: 

If the report flags major structural concerns like foundation movement or significant wall cracks, consult a structural engineer for a detailed assessment.

  • Pest Control Experts: 

Evidence of termite damage or high-risk conditions in Melbourne suburbs warrants a thorough inspection by a pest control specialist to determine the extent of the infestation.

  • Electricians and Plumbers: 

For electrical or plumbing hazards, hiring licensed professionals ensures that the problems are assessed and repaired to Melbourne’s safety standards.

  • Asbestos Removal Services: 

If hazardous materials like asbestos are present, only licensed removalists should handle them to ensure compliance with regulations.

Seeking professional advice helps you clarify risks, estimate repair costs, and decide whether to proceed with the property.

Building inspection reports provide invaluable insights into a property’s condition, but knowing how to spot and interpret red flags is key to making informed decisions in Melbourne’s property market.

From structural issues and moisture damage to pest activity and outdated features, the red flags identified in the report can either guide you toward repairs or warn you to walk away. Seeking professional advice for significant concerns and understanding Melbourne’s unique environmental risks can save you from costly mistakes.

By addressing these red flags head-on, buyers and sellers can navigate the inspection process with confidence, ensuring that the property meets expectations and avoids future surprises.