Once you find a property, what checks do you do?

Hi Tia

That is a big question tha could hae me wrting here for hours!!.wil attempt to keep it brief

Questions
1. What do you intend to do wih his property, buy and hold,reno, development?
2. What specifically are you attempting to achieve with proprty investing generally?, i encourage you to get REALLY clear on this.
3. What specifically o you expect to gain from this property in terms of Cash on Cash return/ROI/$ profit?.
4. How long do you expect it to take to make the profit/result you are seeking from this property?
5. What risks are you facing in prurchasing this property and how d you plan to mitigate those risks to a level acceptable to you?
6. What strategiesdo you curretly have experience with in relation to property investing..buy and hold, positive cashflow/negative gearing, developing, renos, student accomodation etc.
7. Are you intending to buy houses or units?, remember the value in property investing is in the land content, land goes up in value building go down in value, less land and there is higher probability of the value increasing at a slower rate.

Once you have clear answers to the above questions, you are much more likely to have a better understanding of what it is you are trying to achieve and whether this particular proeprty can meet those needs.  Then you will need to look at comparable sales in the area and maybe even go visit a few currently on the market of similr size etc as you have suggested.

Agents should really only be used as a guide to values..ALWAYS confirm your numbers with FACTS not OPINONS

Oh and personally  I use RPData

Hope this all helps

warm regards
Sue

Great points Sue.
To add- when looking at a property factor in ALL the costs and work out how much it will cost you to hold.

Lora- don't pay market value. Look to make your money on the way in. As far as property in good condition. Sometimes you can save 10% off market value because things "appear" to be not in good condition. Eg a coat of paint (a few thousand max) can add $10,000 to a property.  You seem to be on the right track. Choose an area and know it inside out. That way when a bargain presents itself you'll recognise it and pounce (you need to be quick). Check past performance for growth. Whether there is any planned infrastructure changes in the area. Chreck population growth charts (will demand rise?) Is it dependent on one industry? Check vacancy rates (if going to rent).
Good move not limiting yourself to units or houses. Look at the numbers. If they work , buy.

Lora

If you need a Residex report ran on a particular property you are more than welcome to shoot me an email and i will run one off for you and email it back.

I use the Comparative Market Analysis reports for some inter state properties i have been looking at it but have it Australia wide.

Whilst i wouldnt always say their information is spot on 100% accurate given that it is a computerised model it is a fair indication and certainly a step in the right direction when completing your due diligence. 

An independant valuation will also give you an accurate assessment on the value but as most financiers do a valuation these days you could always rely on your lender. In saying this bear in mind the report is not always accessible to you but in cases where we can instruct the valuation and receive a copy we have an indication of the valuation price.

Even where the report is to not available you can work out how much the property was valued at from the percentage of lending you apply for and get approved.

Cheers

Yours in Finance