Hi all,
What kind of due diligence people carry out on the properties they are looking to buy ?
Also what do you looks for when researching an area, you are going to invest in ?Thanks
RomanHi rom399,
One of the due dilegence, is a building inspection. This is after the 11 Second solution.
As for researching the area, one might be what sort of township is it, or how transient the business is.I suggest for more info, Steve’s wrap kit, as it delves deeper into this and also has templates you can use.
Hope this helps some
Sooshie [
]There are no problems, only solutions
As Soosh says, a building inspection is vital.
I’d add to that list a title and pest inspection along with running comparable sales. You can get these either from an independant company such as rpdata, home price guide, property value etc or by asking your agent for comps – just be aware they may choose to only show you ones that suit them!
I’d also check out the vacancy rates (often these can be gotten from the relevant state government statistics dept) and what rents are like in the area as you wouldn’t want to put your monthly payments massively above these (like more than 20-40%).
That should keep you busy! [
]Quasimodo
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Funny how action has a way of answering all of our fearful questions…
___________________________________________________________________________Hi Quasimodo,
On the topic of due diligence. I am purchasing a unit in Burwood and would like to know what other due dilgence should I have done on the property.
So far I have:
* Got a feel of the area and spoke to agents & buyers for 6 months to find the median fair market value of the unit and the fair rental income.
* Purchased the home price guide
* Worked out excel spreadsheet my negative geared amount
* Is it still possible to do a building inspection report & pest inspection report for units?? I would have thought it can only be done for houses?.
* Made searches on the net of the property developer of the unit, to find more info on the company
-> Is there anything else that one could do for due diligence?Quasimodo,
Do you have the website address for vacancy rate statistics for nsw?. I tried to search it on the net, but to know avail could’nt find anything. Also tried http://www.abs.gov.au , but there wasn’t any statistics on vacancy rates.
Can you help here,thanks
ChampHey, champ…..it is most important to get a building inspection done for units —-a great eg was the multi story tower in Sydney that was so poorly managed that there were huge $$$ problems with the building, which the body corporate did not have enough to cover. The owners took the body corp management to court and had them sacked.
BEWARE
and take care of your money
[8D][8]
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