Due Diligence, How much is enough? he!!!p

Hi Beck and welcome to the PI Forum,

How much Due Diligence? You can never know enough!!

You need to understand at what stage the property cycle is at. By the time a “boom” hits the media, its often too late, the smart property investors have already scooped up most of the bargains. Beware that interest rates alone don’t explain trends in the property market.

As so many factors impact a property market its hard to give you a precise formulae however the following factors should be watched closely to give you a better chance of buying in the right place at the right time:

•Established area where a Developer is coming in and buying property.

•Re-development plans for a neglected district that will revitalise the retail district. (Urban Renewal Task Force OR Suburban Centre Improvement Projects)

•Population & Migration growth- more people there’s a greater demand for houses to live. (www.abs.gov.au)

•Major employers or industry moving to an area (i.e. Resources boom in WA). Jobs attract people.

•Infrastructure – Improvements to infrastructure, such as new/upgrading roads and railway lines can change the value of a suburb. This is usually associated with an initial boost when constructions commences and then again on completion.

•Social Changes – Lower birth rate and the ageing baby boomers retiring for a “sea change”

Watch out for the ripple effect when a suburb has experienced a very strong surge often the neighbouring suburb will become undervalued in comparison. Sometimes you can predict the future by observing history. Pinpoint a recent boom area, study its characteristics and then search for areas with similar qualities that haven’t boomed yet.

Having said all that, there comes a point when you’ve read everything there is, and you just need to close your eyes and jump!!

AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources

“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”

You are most welcome. Maybe everyones watching the Tennis tonight, I think Federer is playing!!

AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources

“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”

Hi Beck
l’m no expert as yet but have paid the price a couple of times now for being too slack in the old D D department .
So as boring as it is , l decided it has to be done and just this week saved myself some ‘ huge’ drama’s, talking huge , just by going back one last time .
Gonna try as hard as it is to make it a golden rule from now on.

Cheers

Hey Beck.
l can’t preach as yet but for me personally !
l’m the sort of person with a mind that runs faster than it should, so if l see something of interest , it’s off . Bad move !
Check it all out first – then if all is well and things stack up – go off until your hearts content .
Be careful with doing too much on a long settlement before it settles unless it is 100%secure .
Give a new property idea some time before acting , it’s amazing what time reveals and how the obvious can suddenly become the obvious but not until a week later .
Think about spending on a place first , before forking out the bucks . lt’s amazing how a simple and much cheaper idea getting you the same result and more pofit , pops into your head down the track .
Just afew areas l’ve found that really pay off for me personally but have costed me by agnoring , without going into the nitty gritty sorry .
Especially timing and time things, seem to be crucial in all sorts of ways.

Cheers.