The Importance of Thorough Due Diligence When Buying Property
Time and time again I am amazed by the significant amount of people who are not researching before buying property, often less than they might spend planning a holiday. Sure, they may look at many dozens of potential property options online and attend a few opens, auctions or display villages, but far too often they eventually buy on impulse and pay too much or find themselves dealing with unexpected, often costly issues which could have been avoided had they done their due diligence or engaged professional advice from an unbiased independent expert.
When assisting my clients to buy or build new property, in my professional capacity as a builders’ agent and property investment mentor, together with our team of qualified industry specialist, we carry out incredibly comprehensive due diligence and look into all the things that could possibly impact our client’s selection of shortlisted properties. Our client duty of care process follows strict criteria guidelines and enables peace of mind that the property they purchase is low risk and ticks all of their boxes.
Below is some of the work we carry out as part of our due diligence process for our clients:
1. Confirm comparable M2 rate to other sold properties.
2. Research area for rental rates.
3. Confirm rental appraisals and vacancy rates.
4. Oversee specifications and Builders Conditions.
5. Confirm valuations are of an acceptable range within 3% of purchase price.
6. Provide Full Comparitive Market Appraisal.
7. Confirm position and street specific locations.
8. Ensure suburb is in growth phase.
9. Oversee suitable use of land to suit the Estate.
10. Look for upside potential and long-term growth offset.
11. Infrastructure and employment demand should be confirmed in an over brief.
12. Confirm returns on investment.
13. Check builders’ previous work and reputation.
14. Oversee financial conditions.
15. Work with solicitors in contract preparation before signing.
16. Renegotiate price if required.
17. Look for adverse issues that may affect future capital growth.
18. Decide on up-grading the investment depending on demographics.
19. Property Manager Selection, guidence in all facets of renting the investment.
20. Ensure our clients are 100% happy to proceed.
Our clients consist of first-time home buyers, existing property owners seeking their next place to call home and investors looking to grow their portfolios. They benefit from our research, connections, guidance, strategy and qualified advice aimed at achieving their goals. We take great pride in helping them to mitigate risks, whilst saving them significant time and money. And the most exciting thing is that we offer our Property Investment Mentoring Services for FREE. When formally engaged by our new clients to help them buy new build or wholesale off plan property, we are paid a single fee by the builder of their choosing at no additional cost to them. A Win/Win.
If you are considering buying new property or know of somebody else who is, we’d love to chat. Our motto is Your Choice, On Your Terms at Your Pace. There will no hard sell from us, only qualified property advice. We’re here to help and we LOVE what we do ;-)
Call Dan on: 0402 728 674 or Email: [email protected]